BERLIN — German producer-distributor Internationalmedia and film fund Mediastream have set up a $140 million private equity fund with ERGO Equity Partner to focus on TV, music and multimedia content.
The Entertainment Equity Pool I fund is available only to institutional capital investors and specifically tailored to local insurance companies, according to Christian von Oppen, a fund development exec at ERGO Equity Partner, which is a subsidiary of Dusseldorf-based ERGO Insurance Group,
Von Oppen said the fund will bankroll TV movies, music, interactive media and entertainment software from midsized media and entertainment companies in Europe, especially Germany. He said the company would not rule out bigscreen enterprises in the future.
The exec doesn’t expect the slowdown in the economy and specifically in the new-media sector to affect investments in the new fund. “These are long-term, three- to five-year investments,” he said.
“Due to new digital distribution platforms, the demand for content will increase over the coming years. Through the Entertainment Equity Pool I, we can cover rising capital requirements of many content companies and participate in the growth of this business,” said Clemens von Berger, ERGO Equity Partner board member.
“Since most private equity funds are focused on technology, we will fill a promising gap in the market,” he said.
The companies have tapped industry insiders to form a “board of mentors” that will advise on projects.
Munich-based Internationalmedia has produced a number of pics with IMF fund, including “K-19,” “K-Pax” and “The Quiet American,” while Mediastream’s venture with Universal has financed “The Fast and the Furious” and Jonathan Demme’s “Charade” remake, “The Truth About Charlie.”