Los Angeles, March 20, 2013 – AID Partners Capital Limited (“AID Partners”); a private equity firm focused on expansion capital and buyout opportunities primarily in the media and entertainment sector; has made an investment that values Prime Focus World, NV ("PFW"); the creative services business of Prime Focus Limited (“Prime Focus”, BSE code: 532748); at USD 250 million. The Hong Kong based private equity firm has made an equity investment of USD 10 million in PFW.
“We have accomplished a great deal in the five years since we founded Prime Focus World. We've emphasized the importance of making PFW a valuable investment by breaking into Hollywood, building direct relationships with major global studios, consistently creating superior quality work utilizing our global digital pipeline & generating a revenue growth with a CAGR of over 68%. I attribute our success to our unique model of striking the right balance between creativity, technology & financial imperatives on each of our projects. Today it is heartening to see a discerning investor like AID Partners find such worth in our company,” said Namit Malhotra, Founder, Prime Focus and Chairman & CEO, Prime Focus World N.V.
The investment further validates strong investor interest in Prime Focus and the huge potential that exists in unlocking value in its subsidiaries. In December 2012, Standard Chartered Private Equity invested USD 70 million in Prime Focus Limited.
“From the initial investment of $43 million in 2008, the business has grown five-fold. This is indeed great news for our shareholders as we fuel our next wave of growth,” added Namit Malhotra.
Coupled with AID's recent acquisition of a 100% stake in HMV Asia and its investment in Legendary Pictures (Hollywood's leading media company behind such films as the Christopher Nolan's Batman franchise) the PFW investment further underscores AID Partners’ in-depth knowledge of and commitment to the growth of the entertainment industry in Asia.
“3D and VFX are now key elements of big budget films. With the increasing budgets of China’s tentpole movies, there is a tremendous demand for world-class 3D and VFX services in China,” said Kelvin Wu, Principal Partner at AID Partners.
According to the Chinese State Administration of Radio, Film and Television, China's 2012 box office receipts increased 30% - in majority part due to imported films -ranking China as the world's second-largest box office next to the US (surpassing Japan). PCR is also the largest 3D market outside of the United States, encouraging the government to relax import restrictions that now allow an additional 14 foreign films to be distributed in China provided they are in 3D or large format.
“With China’s rapid economic growth and the population’s desire to enjoy an increasingly better lifestyle, we look forward to working together with Prime Focus to improve the quality of film content produced for the Greater China region and to enable further growth in the entertainment industry,” concluded Mr. Wu.