Shamrock Capital Growth dipped into its second fund to make a siginficant investment in digital distribution provider INgrooves. Deal terms were undisclosed.

In addition to digital distribution, INgrooves markets and promotes services to the audio, video and publishing houses through its ONE Digital segment.

In 2008, INgrooves received a strategic investment from Universal Music Group (UMG) to help manage the distribution of its content through ONE Digital. In addition to the Shamrock investment, the distribution agreement was also renewed.

The extra capital from Shamrock will give INgrooves the capability to make strategic acquisitions within the digital music space as well as expand its offerings into eBooks. "Deal size is on a case by case basis," said Michael LaSalle, vice president at Shamrock. He said transactions could range from small tuck-ins to larger transformative deals. 

Both UMG and Shamrock will own a minority stake in the company once the deal is closed.

Shamrock recently became the majority owner of the New York-based movie theater advertising company, Screenvision. Late last month the PE firm acquired a 50% stake from Screenvision's UK-based co-owner ITV Plc. Technicolor, the remaining owner, will continue to hold a minority stake.

Shamrock primarily focuses on media, entertainment and communication investments in the lower middle market. The firm, founded by the late Roy Disney, currently has $350 million in committed capital in which it spends $10 million to $50 million on investments. Current investments include RealD, MediaStorm, Harlem Globetrotters and Publishing Group of America.

Waller Capital Partners acted as the exclusive financial advisor to INgrooves with Brian Stengel as the lead. O'Melveny & Myers represented Shamrock for legal advice.