Hong Kong-listed Media Asia Group, Korea's S.M. Entertainment Co., Ltd., and Taiwanese financial and communications conglomerate Fubon Group plan to set up a joint investment fund to back film and television projects in China, according to a securities filing.
The fund, named Dragon Tiger Capital Partners L.P., will have US$ 20 million as seed capital. The three parties plan to raise capital from third-party institutional investors starting from late September, with an overall fundraising target of US$100 million to US$200 million.
The fund will invest in film and television projects focused on China and the global Chinese language speakers.
Media Asia Group will control the investment fund and co-manage it with SM Group, while the Fubon Group will be a co-sponsor of the fund.
As part of the deal, Media Asia will act as the exclusive China management agency to three of SM Entertainment's artists: Zhang Li Yin, f(x), and EXO.
Taiwan's Fubon Group has invested in Greater China, South East Asia and United States. Its business activities in China include banking, insurance, fund management and home shopping television.
Some recent deals in the entertainment sector include Fosun International Limited's agreement to acquire an undisclosed stake of U.S. film company Studio 8 announced in June.
In April, China Media Capital joined forces with Chinese private equity firm FountainVest Partners to acquire 20% of IMAX China. At the same time, IMAX Corporation and Chinese consumer electronics company TCL Corporation established a joint-venture partnership with Wasu Digital TV Media Group to cooperate on content delivery.
Last October, U.S. private equity firm TPG signed a definitive agreement to acquire 12.15% of Phoenix Satellite Television Holdings Ltd.
Hony Capital plans to team up with SMG Pictures to establish a joint fund with a targeted size of RMB3 billion ($485 million) to invest in the film and television industries last June.