KKR, Chernin Group launch pan-Asian media investment vehicle

KKR investment in CA Media, a Chenin Group company, marks its foray into the Asian media sector

Global investment firm KKR and The Chernin Group have launched Emerald Media, which will fund investments in media and entertainment industries across Asia as part of a multi-faceted partnership.
 
Emerald Media will focus primarily on providing growth capital ranging from $15 million to $75 million for both control and significant minority positions to media, entertainment, and digital media businesses in Asia.
 
KKR has committed up to $300 million to the platform from its KKR Asian Fund II, while The Chernin Group will join as a minority co-investor. KKR has also acquired a significant minority stake in CA Media, the existing Asian media portfolio of The Chernin Group.

 

“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, Member of KKR & Managing Partner of KKR Asia, in a statement.
 
“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 (Kamat) and Paul (Aiello) in this dynamic sector,” he added.
 
Emerald Media, which will have offices in Mumbai, Hong Kong, and Singapore, will be jointly headed Kamat, former Viacom18 COO and Colors CEO and Aiello, Group CEO CA Media. The duo will continue to manage the CA Media platform, which includes assets in India (Endemol Shine India, Graphic India, Fluence, and Only Much Louder) and in Indonesia.

 
“With the Asia media industry experiencing rapid and transformational changes driven by digitization and growing internet and mobile penetration, Emerald Media will invest across mediums, demographics, and revenue models to continue driving such transformation,” Aiello said.
 
Kamat and Aiello together have more than 30 years of experience in the media and entertainment industries in Asia. While Aiello is the current Group CEO of CA Media, he has held the position of CEO of News Corp.’s Star TV Asia, and was the former Head of TMT investment banking at Morgan Stanley Asia. Kamat is currently the Group COO of CA Media.

 
 
Sanjay Nayar, member of KKR & CEO of KKR India, echoed the sentiment, saying 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.”
 
“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,” said Peter Chernin, Chairman and CEO of The Chernin Group.