Galloping Horse secures second-round private equity financing

Beijing Galloping Horse Group, known for its film and TV production company, Beijing Galloping Horse Film & TV Production, has completed its second round private equity financing with a group of financers including the culture industry fund of CCB International – China Construction Bank’s Hong Kong-based subsidiary company.

Other investors include Kaixin Investment, a fund set up by China Development Bank and CITIC Capital, Beijing-based ChinaEquity, Zero2IPO Ventures and Shanghai-based New Access Capital.

The exact amount of the investment was not disclosed.  However, a Beijing-based investment analyst told Beijing’s Economic Observer that the amount is likely to be more than $100m.

Established in 1998 as a TV and advertising company, the Beijing Galloping Horse Group became well-known for making hit TV dramas. In 2008, it received its first-round private equity investment from Baring Private Equity Partners Asia with $40m.

The company began film investment in 2009 and has invested in Su Chaopin’s Reign of Assassins (2010) [pictured], The Karate Kid remake (2010) and Rob Minkoff’s upcoming Chinese Odyssey and John Woo’s English-language The Flying Tigers.

Recently attached to Beijing Galloping Horse’s major co-production deal is Bourne Identity director Doug Liman’s latest project about Two-Gun Cohen, the British bodyguard of Dr Sun Yat-sen in the 1920s.  Galloping Horse will be the main financial backer and producer on the China side for the co-production project, with Rob Reiner and Alan Greisman producing on the US side. Matt Brown will be scriptwriter of the project.

Beijing-based financial analysts see Galloping Horse’s second-round financing as a prelude of the fast-growing entertainment company’s road to be listed in China’s stock market.