Steven Mnuchin To Join Relativity As Co-Chairman Of The Board Of Directors; Dune Capital Partners To Buy Out Elliott Management

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Oct 02, 2014, 10:03 ET

BEVERLY HILLS, Calif., Oct. 2, 2014 /PRNewswire/ -- Relativity Media ("Relativity") today announced that the company's CEO and Chairman, Ryan Kavanaugh, and its Board of Directors have elected Steven Mnuchin as Co-Chairman of the Relativity board. Relativity also announced a realignment of its capital ownership structure.

Steven Mnuchin (PRNewsFoto/Relativity Media)

Ryan Kavanaugh (PRNewsFoto/Relativity Media)

Mnuchin, Kavanaugh, and a small group of investors (through Dune Capital Partners IV LLC) have agreed to acquire a significant ownership stake of Relativity debt and equity securities currently held through several investment entities controlled by Elliott Management, a private investment firm. Kavanaugh continues to be Relativity's largest individual shareholder and control the right to appoint a majority of the Board. Elliott will continue as a minority investor in Relativity. Financial terms of the transactions were not disclosed.

Mnuchin's appointment will allow Kavanaugh to continue to focus on driving the company's strategic growth in the U.S. and around the world. Mnuchin, who will serve as a non-executive co-chairman, will assist the company on strategic issues and its capital structure as it approaches a potential initial public offering in 2016.

Kavanaugh said, "Steven has been a trusted advisor for years, and I personally recruited him to join our board. He brings an unrivaled perspective on the ever-increasing value of content in Hollywood and Wall Street, and his experience will prove invaluable as we continue moving toward an IPO."

Mnuchin said, "I've known Ryan for several years and have closely followed Relativity's success. I am thrilled to become an investor in the company and join the Board. I look forward to working with Ryan and the management team as they continue to build a global media company that is redefining what it means to be a content creator in the 21^st century."

Ron Burkle, a member of the Relativity board and Managing Partner of The Yucaipa Companies, said, "Today's announcements help to create an even stronger Relativity. Ryan is a visionary leader and Steven brings extensive expertise to our company. We will all benefit from the combined experience, knowledge and relationships possessed by Ryan and Steven."

Mnuchin is chairman and founder of OneWest Bank Group LLC, a Pasadena based regional bank, and Dune Capital Management LP, a private investment firm. Mnuchin has extensive experience investing in and financing the entertainment industry, through affiliates which financed major blockbusters such Gravity, The LEGO Movie, Avatar and Life of Pi. Mnuchin was previously a partner at Goldman Sachs, where he served as a member of the management committee.

About Relativity

Relativity (relativitymedia.com) is a next-generation global media company engaged in multiple aspects of content production and distribution, including movies, television, fashion, sports, digital and music. More than just a collection of entertainment-related businesses, Relativity is a content engine with the ability to leverage each of these business units, independently and together, to create content across all mediums, giving consumers what they want, when they want it.

Relativity Studios, the company's largest division, has produced, distributed or structured financing for more than 200 motion pictures, generating more than $17 billion in worldwide box-office revenue and earning 60 Oscar nominations. Relativity's films include Safe Haven, Act of Valor, Immortals, Limitless, and The Fighter. Upcoming releases include Nicholas Sparks' The Best of Me.

Media Contact:

David Shane
Relativity
310.724.7738
[email protected]

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SOURCE Relativity Media