Chinese outdoor advertising firm Focus Media says it will team up with FountainVest Partners to launch a US$400 million fund to invest in sports companies in China and overseas, according to a securities filing (in Chinese).
Shenzhen-listed Focus Media, which was privatized last year with participation from investors including FountainVest, plans to invest up to US$200 million in Focus Media FountainVest Sports JV.
The private equity firm is investing through its FountainVest China Growth Partners GP2 Ltd.
Focus Media says the purpose of the vehicle is to leverage FountainVest’s sports sector resources and the company’s marketing capabilities to build quality sports companies targeted at the Chinese market.
In November 2015, Focus Media’s founder Jason Nanchun Jiang held 26.73% of the company. FountainVest Partners, Fosun International Limited, CITIC Capital China Partners each held 19.71%, 17.43%, 9.85%, respectively.