CMC closes China media fund at $600m hard cap

The fund, which launched with a target of $500 million, achieved a first close of $350 million in July of last year, with most of the commitments coming from existing investors. The LP base at final close includes public pension funds, sovereign wealth funds, insurance companies, fund-of-funds, family offices, and high net worth individuals.

Consistent with its predecessor, the fund focuses on companies – based in China or with a strong China growth angle – in the media and entertainment, mobile and internet, and lifestyle spaces. CMC’s first US dollar fund closed at $350 million in early 2014. By that point, the GP was already deploying its debut renminbi fund of RMB2 billion ($313 million). A second local currency fund is expected to follow in due course.

“The China market is playing an increasingly important role in our target sectors globally. This unique and exciting market requires profound and in-depth understanding of the market landscape. Leveraging our deep domain expertise and resources, we will continue to explore attractive opportunities and provide value-added services to our portfolio companies,” Li said in a statement.

At the beginning of April, CMC secured an estimated 4x return on its investment in movie theater operator IMAX China. The GP and FountainVest Partners acquired a 20% stake in the company for $80 million in 2014. They took it public in Hong Kong the following year, selling some of their shares, and completed the exit through two subsequent block trades.

CMC remains involved in the IMAX China Film Fund, which was established to bankroll Chinese-language movie productions. It is also an LP in a virtual reality fund raised by IMAX Corporation and IMAX China. Earlier this year, CMC acquired a minority stake in Hollywood talent agency Creative Artists Agency (CAA) and formed a China joint venture with CAA as part of the deal.

Other PE investments by CMC – some of which are renminbi-denominated – include education platform Yuantiku, luxury e-commerce site Secoo.com, food-ordering platform Ele.me, online movie ticket site Gewara (which has since merged with rival player Wepiao and raised more capital), media agency Shanghai Star48 Culture & Media, and Formula E Holdings, the official promoter of the FIA Formula E Championship.

The firm also has a separate unit - CMC Holdings - that is designed to hold assets beyond a 10-year horizon. The business received RMB10 billion in seed capital from Alibaba Group, Tencent Holdings, and fund-of-funds Oriza Holdings.

CMC Holdings is perhaps best known for acquiring the broadcasting rights to matches from China's domestic football league, a stake the holding company of Manchester City Football Club, and Hollywood production house Imagine Entertainment. It is also developing an entertainment complex in conjunction with Hong Kong's Lan Kwai Fong Group and DreamWorks Animation.

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• Topics
• Greater China
• Fundraising
• Growth
• Media
• Technology
• Consumer
• China
• China Media Capital