A new private $800 Million Chinese media fund targets Hollywood

8 February 2012 0 h 36 min Comments Off

Harvest Alternative Investment Group (a subsidiary of Harvest Fund Management) and Sun Redrock Investment Group (founded by Bruno Wu, already one of China’s most successful media entrepreneurs) have formed one of China’s largest media funds – the Harvest Seven Stars Media Fund, with an initial fund raising target of $800 million capital. Their target: Hollywood.

The new  $800 million-fueled private equity fund intends to coproduce or cofinance studio movies and to attract the Hollywood majors and tentpole productions as future investment partners

It aims to invest in studio projects with an eye to bringing them to the wider Asian market and mainland China as well as invest in existing entertainment companies, provide backing for filmmakers and build a distribution system in China and elsewhere

According to several sources, Redrock Investment Group, founded by Chinese media entrepreneur Bruno Wu (picture), and Harvest are currently discussing deals with “major filmmakers and filmed entertainment providers” to invest in English and Chinese language content both for Asia and with the global box office potential.

During a video conference call with HK and London, Wu said he expects to be able to detail deals with Hollywood producers and filmmakers “within the next 30 days or so.”

“One of the main factors in investing in Hollywood output will be that the projects are roundly acceptable to Asian audiences,” Wu said. He added “the new partnership emphasizes our confidence in the strength and potential of the Chinese media industry and the wealth of talent within it. We look forward to cultivating this new joint venture and seeing it grow into one of the world’s leading media funds.” Harvest Alternative Investment Group’s Lindsay Wright declared: “The addition of this partnership to the Harvest Alternative Investment Group further supports our goal of developing a leading alternative product platform in China and globally. We have tremendous confidence in the potential of the Chinese media industry”

According to the presse announcement, the fund will operate “in three distinct areas

- Mergers and Acquisitions: the Fund will identify and take positions in niche dominant companies on a world-wide basis, enabling their consolidation and growth, particularly in the Chinese and Asian markets.
- Operations: the Fund will build a comprehensive distribution and marketing platform in all media across China and beyond, initially bringing the world’s best brands and entertainment to the Chinese and Asian consumer.
- Content: through direct relationships with major filmmakers and filmed entertainment providers, whether as equity stake holders or by provision of operating capital, the Fund will deliver the essential critical mass to its platforms”.

“The team is focused on collaborating with today’s leading filmmakers to develop both English and Chinese language content that is simultaneously Asia focused but also appeals to the world-wide market – crossing borders, cultures and generations”.

The fund aims to make its first investments in May this year. The new fund’s initial pool of capital will probably be expanded in the near future.

CAA is advising the fund via its Beijing office with several deals with producers nearing completion.

About the 2 partners:

Both partners have over 70 years of experience in the Chinese media and finance sectors

Harvest Alternative Investment Group is the alternative investment arm of Harvest Fund Management. Harvest Fund Management was founded in March 1999 as one of the first 10 fund management institutions authorized by the Chinese government as part of its strategy to open up and develop its financial sector.

With more than $ 35 bn of AuM the Harvest Group is currently the second largest and largest sino JV asset management company in China. Its shareholders include Deutsche Asset Management a subsidiary of Deutsche Bank AG(30%), China Credit Trust (40%) and Lixin Investments (30%).

Sun Redrock Investment Group was founded on Sun Media Group created by Dr. Bruno Wu and his wife Ms. Yang Lan in 1999. After only ten years, Sun Media has become one of the leading private media, marketing and investment companies in mainland China. The company operates five major segments under separate brands: Sun Media Group, Redrock Capital, Sun Enterprises Group, Sun Publishing Group and Sun Culture Foundation, a charitable foundation which promotes philanthropy and corporate social responsibility in China.

One month ago,  a consortium, led by Bruno Wu along with Harvest Global Investment and Pacific Alliance Group, was rumoured to eye a big target after holding preliminary talks with Summit ahead of its acquisition by Lionsgate. Companies thought to be in the consortium’s sights included Lionsgate and Miramax.

SOURCES: Companies, THR, deadline.com (6/02/12)

ON THE WEB:

. Hollywood to Be Wooed by $800 Million Chinese Media Fund
The Hollywood Reporter   06/02/12

. Harvest, Sun Redrock launch $800m fund to invest in Asian and Western companies and films
screendaily.com  06/02/12

. Chinese create $ 800 mn fund for investment in Hollywood

Indiantelevision.com  7 /02/12

. Wu unveils $800 million media fund
china.org.cn  7/02/12

. Chinese Fund to Back Films in U.S., China
WSJ  8/02/12

Related posts:

Comments are closed

Other News

  • China (mainland) film Brilliant future expected for Chinese cinema: interview

    Brilliant future expected for Chinese cinema: interview

    Jiang Wen (R), a well-known Chinese director, walks down the red carpet with his wife Zhou Yun at the opening ceremony of the 70th Venice Film Festival in Venice, Italy, Aug 29, 2013. [Photo / Xinhua] (Xinhua, 04 Sep, 2013)Chinese films have achieved over the past few years very positive results in terms of both quantity and quality, and will drive their technology-led development, 70th Venice Film Festival president Alberto Barbera told Xinhua in a recent exclusive interview. This venerable [...]

    Read more →
  • Breaking news China (mainland) film Cloudary extends script to movie industry

    Cloudary extends script to movie industry

    (chinadaily.com.cn, 26 Aug, 2013) Cloudary Corp – an online literature platform owned by interactive media giant Shanda Group – said on Friday that it reached a film script agreement with the Chinese movie firm Seven Stars Films. Seven Stars Films, a movie production and investment firm owned by Chinese media entrepreneu r Bruno Wu, will link Cloudary’s literature with the world’s movie industry. Wu, who is married to popular TV host Yang Lan, founded Seven Star Films in 2012. The [...]

    Read more →
  • Breaking news China (mainland) film China’s movie market booms with local content

    China’s movie market booms with local content

    ( Agencies, 23 Aug, 2013) In “American Dreams in China”, Cheng Dongqing is giving a lecture in an abandoned factory in Beijing . Snow falls through the damaged roof and a power cut sends students reaching for their flashlights. The movie , about how young Chinese in the 1990s tried every means to learn English so they could study overseas, is part of a boom in domestic productions that is outpacing foreign film s at the box office in China. [...]

    Read more →
  • Breaking news China (mainland) film Fast forward with film

    Fast forward with film

    (China Daily, 23 Aug, 2013) In the past year, Chinese films have galloped ahead like a dark horse, beating Hollywood imports. It is hardly surprising that most of these domestic hits are comedies. Comedy is mostly local. When Hollywood sent scouts to recover the secret formula, many of them reported that these Chinese movies were not particularly funny. Of course not. When you translate every line into English, you have lost much of the fun, leaving only a few sight [...]

    Read more →
  • Breaking news China (mainland) Digital Mobile game firms looking abroad

    Mobile game firms looking abroad

    (China Daily, 21 Aug, 2013) Intensifying domestic competition is driving Chinese mobile game developers into overseas markets, said Google Inc, owner of the world’s most used smartphone operating system. Japan and South Korea may become “sizeable” money-spinners for developers in China in the coming years, it added. “Tapping into South Korea and Japan makes sense for Chinese developers, because both countries have a large smartphone user base and high sales volume in the mobile gaming sector,” said Ben Zhang, China [...]

    Read more →
  • Breaking news China (mainland) tv PPTV denies buyout rumors

    PPTV denies buyout rumors

    (chinadaily.com.cn, 14 Aug, 2013) Online video provider PPTV has denied rumors it will be jointly acquired by e-commerce giant Alibaba Group Holding Ltd and Hunan Satellite TV. “We have noticed related media reports. PPTV is operating independently, well, and we have nothing to announce at present,” PPTV told China Daily on Wednesday. A report from IT industry portal 36kr.com said on Wednesday that the prospective deal is almost closed, with the transaction reaching $400 million. It cited venture capital sources [...]

    Read more →
  • Breaking news China (mainland) film Film industry needs long tail to grow

    Film industry needs long tail to grow

    (China Daily, 15 Aug, 2013) The domestic film market registered record half-yearly box office returns of 10.9 billion yuan ($1.77 billion) in the first six months of this year, up 35 percent year-on-year, and there have been excited voices saying that the Chinese film industry is about to boom in the international market. However, box office success is just part of the industry’s chain, and without the further development of licensed movie merchandising, the Chinese film industry is still in [...]

    Read more →
  • Breaking news China (mainland) Digital New WeChat game becoming painfully popular

    New WeChat game becoming painfully popular

    (chinadaily.com.cn, 15 Aug, 2013) A new mobile phone game on WeChat, a social network app in China, is proving so popular that it’s causing hand injuries for many Chinese users. The game, which was recently introduced to WeChat’s 400 million subscribers, allows users to compete online with their friends in aircraft battles. Within two hours after the release of the game on Aug 5, there were more than 180 million downloads. But Zou Cheng, an orthopedic doctor at Hangzhou First [...]

    Read more →