Sequoia part-exits Bona Film stake to company founder

Following the transaction, Yu will hold 42% of the Chinese film distribution company, with Sequoia owning 5.42%. Yu observed that Bona more than doubled its revenues in 2011 and saw non-GAAP income rise by nearly 70%. Growth is expected to continue apace as China's film industry continues to develop.

"My personal purchase of these shares reflects my confidence in the soundness of our business fundamentals and my excitement about the opportunities that lie ahead," Yu said in a statement. "In addition, I believe this purchase indicates my belief in the potential of our company, my commitment to its success and to increasing shareholder value."

Last month, Bona CFO Mason Xu announced he would leave the company to become head of a private equity firm. The news followed the launch of a number of PE funds intended to finance China-based movie co-productions. These include government-backed China Mainstream Media National Film Capital Hollywood Inc and Harvest Seven Stars Media, an $800 million vehicle established by Chinese television production firm Sun Media Group and Harvest Fund Management.

SkyLand, the $100 million China-focused film venture backed by Hollywood entertainment firm Relativity Media, SAIF Partners and IDG China Media, has already begun production on its first picture. The venture is acting in partnership with state-owned Huaxia Film Distribution, China's second-largest player in the field.

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