Relativity Media has formed wholly owned subsidiary Relativity Capital to act as a principal investor in its major media transactions.

Essentially a fund that is expected to commit more than $1bn in transactions, Relativity Capital's investments will include studio slates, the Relativity Single Picture Business, library acquisitions and other media-related cash flow investments.

Elliott Associates, a New York-based hedge fund with $10bn in managed assets that has been one of the largest investors in Relativity Media's previous transactions, will work with and provide financing to Relativity Capital on these transactions.

'This is an important milestone in the company's growth' Relativity Media's Ryan Kavanaugh said. 'It enables us to continue to attract the highest quality media investments, and now, because we are acting as principals, allows us to act even more quickly and efficiently.

'We are extremely pleased to be continuing and expanding our relationship with Relativity,' Jesse A Cohn, who manages Elliott's relationship with Relativity Media, said. 'We have had positive experiences in our previous transactions with Relativity, and look forward to helping to support their innovative vision in the space.'