Dubai: NV Capital, India’s first Media & Entertainment Credit Fund, today announced plans to organise virtual roadshows to tap investors across the UAE forraising AED 246 Million (US$ 67 Million) corpus.
Given the active involvement of Indian diaspora investing across various equity and debt instruments in India, as well as exploring new alternative asset classes, NV Capital is looking forward to raise funds from HNIs, NRIs, Family offices and Financial Institutions based out of UAE to participate in the growth story of this sunrise sector.
Founded by industry professionals and ex-bankers Nitin Menon and Vivek Menon, NV Capital will be also India’s first Credit fund focused on the Media and Entertainment sector with the objective of investing in Content creators, OTT platforms, Gaming and Entertainment Start-ups. The fund recently received a nod from SEBI as Category II Alternative Investment Fund. With the rapid rise of Category II credit funds in India over the last few years, NV Capital is looking to establish a New Alternative Asset Class in the Media & Entertainment space.
Commenting on the plans, Vivek Menon, Co-Founder & Managing Partner, NV Capital, said, “It is a proud moment for us to launch India’s first credit fund in Media and Entertainment industry which is on the cusp of exponential growth. Given the rise of UAE as a preferred destination for global FPIs, it is eminent for the country to become the gateway of new age sectoral funding to countries like India. At the same time, owing to cultural similarities, a large expat population of Indian origin and sustained tie-ups with Indian media and entertainment industry, UAE remains a key market for garnering funds for pour pioneering offering.”
With close to 1500 movies being released every year, combined with the rapid rise of multiple OTT monetization platforms which showcased 180+ web series and 80+ direct to OTT films launches in Hindi language alone since last year, the value of content has been growing exponentially. This trend highlights the scope and enormous opportunity in Entertainment Financing where Content creators are in constant dearth of capital to scale up.
Add to this, Digital Media & Gaming are the other two subsegments that continue to grow expeditiously, with online Gaming alone expected to grow at a CAGR in excess of 25%. With this humungous demand for Content, Digital & Gaming rising manifold and in the absence of Institutional Credit, NV Capital’s vision is to be pioneers in financing these sunrise verticals thereby aiding in nurturing and monetizing the creative ecosystem.
Speaking on the opportunity, Nitin Menon, Co-Founder & Managing Partner, NV Capital, said, “The last 10-15 years has witnessed meteoric growth in this Alternative Asset Class with the support of ancillary revenue monetization platforms like Broadcasting, Music amongst others, and now the recent OTT phenomenon. The investment in programming by media houses in OTT more than doubled from ~USD 260 Mn in 2017 to ~USD 700 Mn in 2020. Further, with the recent Amazon – MGM and the Warner – Discovery deal, the war for content manufacturing is getting bigger globally and India would be a recipient of these content spends as the next big market”
The sponsor of NV Capital is Mr. Jayantilal Gada who is the Chairman and Managing Director of Pen Studios, who has over 35 years of experience in the Media and Entertainment Industry. Pen is India’s leading integrated studio with a prominent presence in Film Production, Distribution, Movie Aggregation, Broadcasting, Digital Media, Visual Effects & Animation.
Mr Gada has been an Industry leader who was produced numerous movies and is currently producing & distributing colossal projects which include SS Rajamouli’s “RRR”, S Shankar’s Hindi remake “Anniyan” and Sanjay Leela Bhansali’s “Gangubai Kathiawadi”, all in multiple languages. Another key milestone in his career includes, achieving the highest TRP till date in the broadcasting industry for the satellite release of “Sholay” in 1995.
NV Capital has been founded by former Corporate Bankers- Nitin Menon and Vivek Menon having two decades of experience. In their previous assignment at Yes Bank, they represented the Media & Entertainment Financing group at the Bank deploying in excess of INR 700 crores over 40 projects.