Ryan Kavanaugh’s Relativity, the movie studio behind “Immortals,” is bringing in new investors ahead of a planned initial public offering.
Steve Mnuchin, Kavanaugh and other unnamed investors via Dune Capital Partners are buying much of the remaining stake held by hedge fund Elliott Management. Mnuchin, the co-founder of Dune Capital, is joining Relativity’s board as co-chairman.
Elliott sold down much of its original 50 percent stake in Relativity to supermarket magnate Ron Burkle’s Yucaipa Cos. in 2012.
Relativity didn’t give a breakdown of its new ownership, but Elliott’s stake is now estimated to be in the single-digit percentage range.
Now seems like a strange time to sell out of a studio given the interest among big and small players in acquiring film and other content — in particular for a new crop of online streaming services.
But Kavanaugh had a window to buy back Elliott’s stake, and exercised his option, according to a source close to the studio.
Relativity will be in a stronger position for the addition of Mnuchin and other shareholders, according to Burkle.
“We will all benefit from the combined experience, knowledge and relationships possessed by Ryan and Steven,” Burkle said in a statement obtained by The Post.
Mnuchin, who sold his financial institution, OneWest Bank, to CIT for $3.4 billion last summer, has been a Relativity banker for years and is familiar with the firm’s finances. The former Goldman Sachs executive has invested in films such as “Gravity,” “The LEGO Movie,” “Avatar” and “Life of Pi.”
“Steven has been a trusted adviser for years and I personally recruited him to join our board,” Kavanaugh said.