Steven Mnuchin to Join Relativity as Co-Chairman of the Board of Directors. Dune Capital Partners to Buy Out Elliott Management
(Beverly Hills, Calif.) October 2, 2014 – 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.
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 21st 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.