China-based record label Modern Sky Entertainment and online entertainment platform Shanghai Joy Network have agreed to jointly launch a RMB3bn ($463m) private equity fund, China Money Network has reported.
The fund will look to invest in international music and entertainment assets that can be extended or licensed to the Chinese market, and will seek to form joint ventures with international music companies that can bring new products into China.
Shanghai Joy has also provided Modern Sky with $20m in series B funding, taking a 10% stake in the process.
Founded in 1997, Modern Sky has released more than 200 albums and also runs a music festival. It previously received $16m in series A capital from private equity and venture capital firm China Media Capital
Shanghai Joy Network was founded as video sharing platform Megajoy before it was acquired by conglomerate Fosun in July 2014. Having expanded into social media and online gaming, it now operates as Fosun’s online entertainment arm, and floated on China’s Neeq market earlier this month.