Singapore: Chinese Film Tycoon Yu Dong Co-Launches $100 Million Media Fund

Yu Dong - P 2012
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Yu Dong - P 2012

The Bona Film Group CEO has partnered with a Singapore-based private equity firm for the fund, which will allow for foreign investment in China's highly regulated entertainment industry

Chinese entertainment tycoon Yu Dong, founder and CEO of Bona Film Group, has partnered with private equity firm Tembusu Partners and Singaporean entrepreneur Calvin Cheng to launch a $100 million media fund.

It will be the first non-Reminbi dominated fund to invest in China’s media and entertainment industry. It will be domiciled in Singapore and will leverage the country’s legal framework, co-production treaty with China, and status as a financial hub to attract international investors.

“Singapore is the perfect place to launch this fund as it is not only a financial capital of the world, but also as the place where East meets West," said Dong. "This fund will allow foreign investors to participate in the fastest growing media and entertainment market in the world."

According to the founders, the $100 million closed-end five-year media fund will be formalized on March 31, 2015, with fund raising to begin shortly after. Anchor investors are expected to include Bona Film Group, as well as Thailand’s Chia Tai Group. The fund will target Chinese media companies, content producers and technology firms for investment.

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The parties involved said they will also endeavor to promote international cooperation opportunities between China and countries such as Singapore and the United States, through co-productions or joint ventures.

Cheng, who put the deal together, said: “The existing Film and TV co-production agreement between Singapore and China opens up opportunities for the fund to invest in projects that involve Singapore-based media companies. In addition, we will be looking at media companies globally that have a ‘China-story.’ With the convergence of traditional media with the internet, there will be many exciting new opportunities that will emerge from the vast Chinese landscape, and we will be looking to invest in the best of them.”

Dong unveiled the fund on day two of the Singapore Media Festival, held at the Marina Bay Sands casino and convention complex, owned by Sheldon Adelson.