CDIB invests in China VFX player

VHQ China is a subsidiary of Taiwan-listed VHQ Media Holdings, Asia’s largest post-production house that has serviced the region’s film, television, and commercial producers for over 30 years with offices in Taipei, Singapore, Kuala Lumpur, Jakarta, Hong Kong, and Beijing. Its China business, launched in 2013, has 400 employees providing a range of services including visual effects and 3D animation for major studios including Alibaba Pictures.

China’s box office revenue grew to RMB61 billion ($8.9 billion) in 2018, surpassing the US to become the world’s largest movie market, but per-capita movie views in the country remain below the global average. Industry participants expect viewership to continue to rise, fueled by consumers’ interest in entertaining, special effects-heavy domestic films.

“We are impressed by the achievements of the management team thus far by successfully bringing together experience from Hollywood and local knowledge in China,” said Hamilton Tang, a managing director at CDIB Capital, in a statement. “We also see this as a window to capture growth in China’s highly regulated media and entertainment industry. VHQ China, as a pure-play post-production and VFX service provider, fits nicely as a proxy for the industry’s overall growth thesis.”

CDIB Capital is the PE arm of Taiwan’s China Development Financial, and currently has more than $1.2 billion in total assets under management. The firm invests in compelling growth-oriented companies with the potential to capitalize on cross-market opportunities in Asia, with special situations deals pursued on an opportunistic basis.

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• Topics
• Greater China
• Media
• Support services
• Expansion
• China
• professional services
• Growth capital
• CDIB Capital