Internet company Tencent and e-commerce group Alibaba have backed CMC Holdings, a new vehicle of Chinese government-backed private equity fund China Media Capital, China Money Network reported today.
Private equity firm Oriza has also committed funds.
CMC Holdings is targeting a close of RMB10bn ($1.6bn), though it has not disclosed any further financial details. The fund will seek to identify startups in the content creation and hardware platforms sectors, and aim to foster an integrated media and entertainment ecosystem.
Founded in 2009, China Media Capital invests in the media sector, primarily in China. It had an original commitment of $806m and tends to invest between $22.6m and $77.4m.
The latest announcement follows a string of deals inked by China Media Capital, including a partnership agreement with media company Warner Bros to produce Chinese language films and entertainment company Merlin Entertainments to build a Legoland park and other attractions in China.
In March 2014, China Media Capital also signed up marketing firm WPP, telecoms company Softbank and media conglomerate Time Warner for a fund to invest in TV, radio, advertising, cinema, internet and mobile-phone projects.