Hollywood producers Robert Simonds and Gigi Pritzker have announced that they intend to launch a next-generation film studio in collaboration with TPG Growth that aims to over $1 billion in new film production over the next five years.
Simonds and TPG Growth, the middle market and growth equity investment platform of TPG have incubated the studio, while Hony Capital, a leading private equity firm in China, is the anchor investor. OddLot Entertainment CEO Gigi Pritzker will provide the studio with additional equity and debt financing.
The production venture aims to produce its own content and is initially targeting the release at least eight to 10 mid-range budget, star-driven theatrical films catering to a global audience.
The studio also aims to pursue “unprecedented direct distribution agreements” with leading North American theatre chains such as AMC Theatres, Regal Entertainment Group, Cinemark and Carmike.
“With Bob Simonds, we have built an independent company with the capabilities of a major studio – a fully integrated and truly global production and distribution company,” said Bill McGlashan, managing partner of TPG Growth.
“We are delighted to partner with the leading theatre chains in North America as we launch and expand this business, and as developers and owners of original content, we look forward to working with the many new and exciting digital distribution channels around the world.”
Simonds, who has produced films including The Waterboy, Herbie: Fully Loaded and Just Married, will be chairman and CEO of the studio. Its executive team includes former Viacom Entertainment chief operating officer Thomas McGrath as COO, former CEO of Crest Animation Noah Fogelson as executive vice president of corporate development and general counsel, and Sophie Watts as executive vice president of content.
“The seismic shifts in the entertainment industry have produced exciting new opportunities in content, production and distribution. Together with our partners, we are creating a studio with the flexibility, global scale, and experience required to seize this opportunity,” said Simonds.
“Star-driven, mid-budget films are an underserved market and with our proven track record in this area, we are uniquely positioned to successfully partner with traditional distributors in North America, expand in the vast Chinese market, and capitalise on new, still developing digital channels.”
The studio also aims to expand in the Chinese markets and is utilising Hony Capital’s involvement in the venture to collaborate with SMG Pictures, a leading studio backed by China’s largest entertainment conglomerates.
“This is the first investment a Chinese company has made into a Hollywood studio; and it is a perfect example of how investors bring in various but unique resources to create a new-age studio,” said John Zhao, CEO of Hony Capital.
“Together with its strategic partners like SMG and PPTV, Hony Capital will bring in the best mix of China’s market resources to help Bob and his veteran team execute the first global-market focused, vertically-integrated studio that Hollywood has seen in a decade.”
– Photo of Robert Simonds courtesy of Simonds, via Wikimedia