KKR Partners with Chernin for Asian Investment Fund

MUMBAI/SINGAPORE: Investment firm KKR is partnering with The Chernin Group to set up Emerald Media, which will look to invest in media and entertainment opportunities across Asia.

KKR has committed $300 million to the fund, with Chernin joining as a minority co-investor. It will focus on providing growth capital of between $15 million and $75 million to media, entertainment and digital media businesses.

KKR has also acquired a “significant minority stake” in Chernin’s CA Media, which has stakes in Endemol Shine India, Graphic India, Fluence and Only Much Louder in India; and assets in Indonesia.

Emerald Media will be run by CA Media’s Rajesh Kamat and Paul Aiello out of offices in Mumbai, Hong Kong and Singapore. Kamat and Aiello will continue to run CA Media as well.

“The growing middle class in the region is using its discretionary income on Internet connectivity, but the industry itself is fragmented,” said Joseph Y. Bae, managing partner of KKR Asia. “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, the 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, the chairman and CEO of The Chernin Group, said, “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.”