OREANDA-NEWS. November 05, 2015. Global investment firm
KKR and The Chernin Group, LLC today
announced a multi-faceted partnership that includes the creation of
Emerald Media, a new vehicle to fund investments capitalizing on
fast-growing opportunities in the media and entertainment industries
across
Asia. KKR has committed up to
\\$300 million to the Emerald Media
platform from its
KKR Asian Fund II and
The Chernin Group will join as a
minority co-investor. KKR has also acquired a significant, minority
stake in CA Media, the existing Asian media portfolio of
The Chernin
Group.
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Leading industry veterans
Rajesh Kamat and
Paul Aiello will jointly head
Emerald Media and will be joined by an experienced team of operating
executives. Emerald Media will have offices in Mumbai, Hong Kong, and
Singapore. Messrs. Kamat and Aiello will continue to manage the CA Media
platform, which includes assets in India (Endemol Shine India, Graphic
India, Fluence, and Only Much Louder) and in Indonesia.
Messrs. Kamat and Aiello together have more than 30 years of experience
in the media and entertainment industries in Asia. They bring a unique
blend of operational and investment acumen to their business approach.
Mr. Aiello is 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.
Mr. Kamat is currently the Group COO of CA Media
and was formerly COO of Viacom18 Group and CEO of Colors.
Emerald Media will focus primarily on providing growth capital ranging
from US\\$15 million-US\\$75 million for both control and significant
minority positions to media, entertainment, and digital media businesses
in Asia.
Joseph Y. Bae, Member of KKR & Managing Partner of KKR Asia,
said, "The growing middle class in the region is using its discretionary
income on Internet connectivity, but the industry itself is fragmented.
Investing behind proven leaders in industries with high growth potential
and partnering with them to grow their business is a cornerstone of
KKR's Asia strategy. We look forward to working with experienced media
leaders Rajesh and Paul in this dynamic sector."
Sanjay Nayar, Member of KKR & CEO of KKR India, added, "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."
Peter Chernin, Chairman and CEO of The Chernin Group,
noted: "This partnership provides TCG and its fellow investors in CA
Media with a unique opportunity to continue to work with a best in class
management team and leading global investors at KKR in Asia."
"The media and entertainment sector is on the cusp of a strong growth
phase—driven by media convergence, an attractive investment environment,
and rising discretionary spends. 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.
Paul Aiello further added, "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."
ABOUT KKR
KKR is a leading global investment firm that manages investments across
multiple asset classes including private equity, energy, infrastructure,
real estate, credit and hedge funds. KKR aims to generate attractive
investment returns by following a patient and disciplined investment
approach, employing world-class people, and driving growth and value
creation at the asset level. KKR invests its own capital alongside its
partners' capital and brings opportunities to others through its capital
markets business. References to KKR's investments may include the
activities of its sponsored funds. For additional information about KKR
& Co. L.P. (NYSE:KKR), please visit KKR's website at www.kkr.com.
ABOUT THE CHERNIN GROUP
The Chernin Group, LLC (TCG) is a privately held, independent media
holding company founded by
Peter Chernin and based in Los Angeles,
California. TCG has built, managed, operated, and invested in businesses
in the media, entertainment, and technology sectors around the world
since 2010. TCG's assets include Chernin Entertainment, which produces
feature films and television programs; Otter Media, an online video
venture with AT&T that owns Crunchyroll and Fullscreen; CA Media, which
operates media and entertainment businesses across South and Southeast
Asia; and a range of strategic investments in digital media companies
including Pandora, Twitter, Medium, SoundCloud, and Scopely. Providence
Equity Partners LLC, Qatar Holding LLC, and 1Verge (investment vehicle
of
Victor Koo, founding CEO of Youku and Chengwei Capital) are other
shareholders and strategic partners of TCG.
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