Illustration: Sarah Grillo/Axios
The Chernin Group and talent management company Night Media are setting up a new growth equity vehicle named "NightCap" that will aim to acquire businesses and team them up with content creators, Axios has learned.
Why it matters: It's yet another testament to the influence and commercial power of social media stars, rivaling that of traditional celebrities like actors and musicians.
- YouTube star and Night Media client Mr. Beast, for example, has launched consumer ventures under his brand, including a fast food chain and food company whose first product was a trio of chocolate bars.
The big picture: Along with raising $1 billion for a new fund last summer, The Chernin Group added new partners to diversify its investment areas to include crypto, content creation, commerce and health, for example.
- The firm also said it's remaining focused on growth equity, though it could invest at earlier stages and raise a separate vehicle for that down the road.
- As for Night Media, it formally got into the investment business last spring with the debut of a $20 million VC fund whose limited partners are content creators and social media stars.
The Chernin Group declined to comment. Night Media did not immediately respond to request for comment.