Shanghai Media Group has lined up a powerful financial partner to support its bid to build an international entertainment empire.

In a statement released on Thursday, China Media Capital, a private equity fund focusing on culture, which is partly owned by SMG, said it has formed a strategic partnership with The Raine Group.

"We and Raine share the same vision — to build Chinese media and entertainment companies into world-class institutions, to further develop the content-creation industry in China, and leverage the technology, formats, innovations, and experience of the global digital media, sports and entertainment sectors into China," Li Ruigang, chairman of China Media Capital, who was also the president of SMG from 2002 to 2011, said in the statement.

"Raine brings us unparalleled access across the media sector through its portfolio companies, investors and strategic partners such as WME Entertainment. We believe that by combining our resources and networks, we will bring a unique value proposition to our investments," he said.

CMC insiders said that Raine is seeking to benefit from the partnership by leveraging on SMG's deep experience in the Chinese media industry to establish a foothold on the mainland market.

"We believe the media sector in China is on the cusp of a significant growth trajectory, as demand for international content in China continues to increase, and Chinese media companies continue to expand globally, seeking strategic capital and partners," said Joseph Ravitch, co-founder of Raine, in a statement.

The move is being closely watched by giant studios, entertainment tycoons and independent film producers from Hollywood to Bollywood as SMG has made known its ambitious plan for global reach in several past exploits.

Last August, together with China Media Capital and Shanghai Alliance Investment Ltd, SMG agreed with Kung Fu Panda's producer DreamWorks Animation SKG Inc to co-establish the joint venture Oriental DreamWorks.

The joint venture will create content and interactive entertainment products for the Chinese and international markets.

In the same month, CMC, SMG and Hong Kong-based TVB established the joint venture Shanghai Feicui Dongfang Communications Co Ltd to operate all of TVB's business on the Chinese mainland. CMC and SMG together hold an aggregate 45 percent of the joint venture.

The partnership with Raine is seen as a key move because Raine can provide not only funding but connections and advice on international practices with which SMG is not familiar.

Founded in 2009, the Raine Group is a global merchant bank focused exclusively on entertainment, digital media and sports.