Lionsgate Studios has named Steven Mnuchin, a former Treasury Secretary in Donald Trump’s first presidential administration, to its board of directors.
Bringing on the hedge fund operator and film producer follows Lionsgate signing a standstill and voting agreement with Mnuchin’s Liberty 77 Capital L.P., and MHR Fund Management, LLC, run by Mark Rachesky, chair of the Lionsgate Board of Directors, according to a Jan. 26 regulatory filing. “Steven brings a long record of public and private sector leadership and is an exceptional addition to the Lionsgate Board,” Rachesky said in a statement on Monday.
Standstill agreements typically prevent investors and their affiliates from acquiring shares beyond a certain limit and taking other actions with respect to the companies. Mnuchin holds around a 13 percent stake in Lionsgate Studios.
“His steady judgment, global perspective and deep industry insights will be enormously valuable as Lionsgate continues to grow as one of the world’s leading pure-play content studios. Steven and his fund are significant Lionsgate investors, and his interests are aligned with those of Lionsgate shareholders. I and the rest of the Board look forward to working closely with him on the creation of further shareholder value,” Rachesky added.
The standstill agreement stipulates that “none of the Liberty parties and MHR Fund Management will engage in customary standstill actions, including increasing their ownership in the company above 17.5 percent, making unsolicited proposals, launching proxy contests, forming groups, or otherwise participating in activities that could challenge or circumvent the company’s governance structure.”
Besides his hedge fund, Mnuchin co-financed the Avatar franchise and has over 35 executive producer credits. He is also managing partner of Liberty Strategic Capital, a private equity firm focused on technology, financial services, fintech and new media content.
“I have long admired Lionsgate’s creativity, entrepreneurial spirit, and ability to excel in a competitive industry. I am pleased to join the company’s Board. Lionsgate’s board and management team are building something dynamic and forward‑looking, and I am eager to support that momentum. I look forward to helping guide the company in combining strong vision with disciplined execution,” Mnuchin said in his own statement.