CMC invests in China visual effects production studio

Founded in 2006, the Chinese company also has operation in Los Angeles. It provides character animation, special effects such as 3D matte painting to Hollywood film producers and movie directors in China. The company has completed more than 150 films to date, including Star Wars: The Force Awakens, Mission Impossible and Age of Extinction.

In line with the investment, CMC Holding has announced plans to set up a joint venture with BaseFX focusing on visual effects production business.

CMC Holdings was launched in November last year, with backing from Oriza Holdings, Tencent Holdings and Alibaba Group. The investors committed a combined RMB10 billion ($1.6 billion). CMC's investments are therefore now are managed by two different entities. While short-term financial-driven investments will be managed by CMC Capital Partners, a number of long-term strategic investments will be structured under the CMC Holdings umbrella.

The firm has already announced some deals that are not necessarily suited to the limited lifecycle of a traditional PE fund. For example, DreamCenter, a Shanghai-based entertainment complex developed by CMC, Hong Kong's Lan Kwai Fong Group and DreamWorks Animation, is set to open in 2017 and then deliver stable returns over a long period. Similarly, last month CMC agreed to develop a Legopark in Shanghai with London-based Merlin Entertainments Group.

The new funding raised by BaseFX will be used for hiring additional staff as well as technology development and content production, according to local media.

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• Topics
• Greater China
• Media
• Expansion
• China
• Media
• China Media Capital
• Growth capital
• Joint Venture