Sailing Capital Management, an investment firm controlled by Shanghai International Group (SIG), has signed a memorandum of understanding with Shenzhen-listed Shanghai New Culture Media to jointly launch a RMB1 billion ($165 million) fund called Sailing New Culture Private Equity Fund, according to Chinese media reports.
Shanghai New Culture Media will contribute RMB200 million to the new RMB fund. Sailing Capital is to contribute RMB490 million. The remaining RMB310 million is planned to be raised from private investors or the Shanghai government.
The fund will primarily focus on making domestic or overseas equity or debt investment in culture, media, tourism, gaming and advertising sectors.
Sailing Capital launched a RMB5 billion buyout fund to focus on cross-border deals in early December.