LOS ANGELES, March 10, 2014 /PRNewswire/ -- Producer Robert Simonds, TPG Growth, the middle market and growth equity investment platform of TPG, Hony Capital, a leading private equity firm in China, and producer Gigi Pritzker today announced the launch of a next generation film studio, and the closing of multiple financing and distribution transactions. Incubated by TPG Growth and Mr. Simonds, the studio's strategy is to finance, produce and self-distribute 8 to 10 star-driven theatrical films for the global markets per year. Between the debt and equity financing closed today, and commitments for distribution from theatrical and other distribution partners, the studio expects to invest well over $1 billion in new film production over the next five years.

As an anchor investor, Hony Capital brings its unique angle and deep connections in China, the second largest movie market, to the business. This marks one of the most significant investments by a mainland Chinese company into a U.S. film studio. In parallel, the company also announced a strategic partnership for film and television production with SMG Pictures, a leading studio backed by China's largest entertainment conglomerates. Additional equity and debt are provided by business interests of film producer and OddLot Entertainment CEO Gigi Pritzker, who will also sit on the board. The studio worked closely with J.P. Morgan Chase & Co. to structure and arrange senior debt financing for the business, which was underwritten by J.P. Morgan Chase & Co. and Bank of America Merrill Lynch, and includes placement of a separate Prints and Advertising facility.   

The studio will initiate, develop, produce and distribute its own film content. Mr. Simonds will serve as Chairman and CEO of the new studio, which will focus on star-driven, mid-budget films. The films will feature stars in commercial roles highlighting their signature strengths and appealing to movie-goers with a broad range of genres including comedy, action and drama. The studio's veteran executive team includes Chief Operating Officer Thomas McGrath (former COO of Viacom Entertainment), Executive Vice President of Corporate Development & General Counsel Noah Fogelson (former CEO of Crest Animation), and Executive Vice President of Content Sophie Watts. Additional senior executive appointments will be announced shortly. 

The studio is also uniquely positioned to control its own wide domestic theatrical distribution through its unprecedented direct distribution agreements with leading North America theater chains AMC Theatres, Regal Entertainment Group, Cinemark and Carmike.The studio expects to make additional announcements in the near term about further distribution deals concerning the pay-TV window and home entertainment. Maintaining ownership of the full stream of rights in its content, the studio is also exploring digital distribution partnerships with leading online entertainment providers around the world.

"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 Mr. 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 capitalize on new, still developing digital channels."

"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 and Founder of TPG Growth.  "We are delighted to partner with the leading theater 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."

"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."

Pritzker stated, "I am confident in Bob's vision for this company and the partnership he has assembled. I look forward to seeing it thrive. As both a filmmaker and an investor, I look forward to finding strategic opportunities to work with him on upcoming projects."

"Bob and his team are perfectly positioned to build this next generation studio, partnering with established industry leaders to enable global stars to entertain their fans in commercially successful films," said Elizabeth Frank, Chief Programming and Content Officer of AMC Theatres. "They see great potential in connecting directly with movie-loving consumers through theater chains and other distributors to maximize box office success and then other release windows."

Board members of the new company include:  Robert Simonds; David Bonderman, Founding Partner of TPG; Bill McGlashan, Managing Partner and Founder of TPG Growth; Frank Biondi, Former President and CEO of Viacom, Inc. and Former Chairman and CEO of Universal Studios; Tony Vinciquerra, Former Chairman and Chief Executive Officer of Fox Networks Group; John Zhao, CEO of Hony Capital; Yang Wenhong, Director of Film and Television at Shanghai Media Group; and Gigi Pritzker, Founder of OddLot Entertainment.

The Raine Group served as the exclusive financial advisor to the studio.