Global investment firm KKR and independent media holding company Chernin Group have created a new investment platform Emerald Media to invest in the growing media and entertainment industry across Asia, the two stated in a press release.
KKR will invest $300 million from its KKR Asian Fund II in the platform while Chernin Group will be a minority co-investor. KKR has also acquired a minority stake in CA Media, an existing Asian media company under Chernin Group.
The media, entertainment and digital media segment across Asia especially in India enjoys attractive macro fundamentals, mirroring the trajectory of the region’s consumer sector. This is a fragmented industry, and we are excited to work with industry veterans to identify the next generation of media and entertainment companies we can partner with and support,
said Sanjay Nayar, member and CEO of KKR India.
With offices in Mumbai, HongKong and Singapore, Emerald Media will provide growth capital ranging from $15-75 million (Rs 100-500 crore) for both control and significant minority positions to media, entertainment, and digital media businesses across Asia.
It will be headed by Rajesh Kamat, Group COO of CA Media who was formerly COO of Viacom18 Group and Paul Aiello, the current Group CEO of CA Media, the former CEO of News Corp’s Star TV Asia, and former Head of TMT investment banking at Morgan Stanley Asia.
Both Kamat and Aiello are sure of the growth potential of media and entertainment industry across Asia.
With the building blocks for growth in place, there is a significant opportunity to create a diversified portfolio of assets in this space, building on our accomplishments and ongoing work with CA Media and The Chernin Group,
said Rajesh Kamat about investing environment in this sector.
Aiello voiced a similar opinion and said in the press release,
With the Asia media industry experiencing rapid and transformational changes driven by digitization and growing Internet and mobile penetration, Emerald Media will invest across mediums, demographics, and revenue models to continue driving such transformation.
CA Media has already built a strong portfolio of investments in areas such as television and film production, live music events, youth media, digital content, intellectual property and graphic novels. Its investments include stakes in content company Endemol India, music and live events company Only Much Louder, and entertainment company-Graphic India.
According to a report by global firm KPMG, the Indian media and entertainment industry is set to witness a strong growth and expected to touch 13.9% CAGR, and reach`19,6400 crore by 2019. This growth rate is almost double that of the global media and entertainment industry. In 2014, the number of transactions in the sector rose to 61 from 26 transactions last year. The value size of transactions also increased to $2.4 billion from $224 million, KPMG’s report said.