Hony Capital Teams Up With SMG To Establish Joint Fund

Chinese private equity firm Hony Capital plans to team up with SMG Pictures to establish a joint fund. With a target size of RMB3 billion ($485 million), the fund will invest in the film and television industries, according to Chinese media reports.

The fund will be used to invest in equities, as well as production of films and television series.

"Hony Capital will not only bring in capital, but also more resources," says Zhao Linghuan, CEO of Hony Capital.

Hony Capital has previously cooperated with other media firms, including Phoenix Publishing & Media and Beijing-based Uyoung Media.

Chinese box office revenue for 2012 was estimated to be roughly US$2.3 billion to US$2.4 billion, now the largest movie market outside of North America.

Hony Capital manages US$6.8 billion in assets across 7 funds. The company has offices in Beijing, Shanghai and Hong Kong.

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