HAN Capital Raises $500 Million Fund for Chinese Film Production

  • Former Citigroup executive plans to compete with Hollywood
  • The fund seeks movie projects for China and global audiences

HAN Capital Management, a New York-based investment company, raised a $500 million entertainment fund to finance Chinese film and television projects to compete with Hollywood productions.

Founded by John Liu, a former Citigroup Inc. and SAC Capital Management executive, HAN Capital also has offices in Shanghai and contributed $200 million to the fund, according to a press release. The investment pool will provide financing to internal and outside projects, as well as co-production deals. Liu also is chief executive officer and lead partner at HAN Pictures & Media Corp., a sister firm.

China’s box office revenue exceeded $7 billion in 2015, ranking second in the world, and grew at a 30 percent rate over the past five years, according to the release. It’s expected to overtake the U.S. industry in 2017, Liu said in the statement.

“With the middle class in China booming and demands for entertainment consumption growing, it’s one of a few high-growth and hot investment sectors in China right now,” he said. “HAN Pictures’ content will be very high-quality in both story-telling and in execution.” Productions, including some set in China, will target Chinese and global audiences and use local and international talent, Liu said.

HAN Capital set a goal to help fund, produce, develop and distribute 15 feature films through 2017 with budgets of as much as $150 million, it said.