Both IDG Ventures Europe and Add Partners, who invested alongside Ingenious’ private equity arm in 2004, have also exited as part of the deal.

Lionhead Studios is best known for its top-selling Fable games for Microsoft’s Xbox console, and released Fable: The Lost Chapters and two separate titles, Black & White 2 and The Movies since Ingenious invested.

’Lionhead has consolidated its position as one of the most innovative developers of gaming content since our investment in 2004,’ comments Patrick Bradley, a director at Ingenious Ventures. ‘We are confident that its success will continue in partnership with Microsoft.