Many Hedge Funds, including New York’s Elliott Associates, are seeing premium returns from investing in film and media. While historically, film financing has been met with skepticism from portfolio managers, private equity groups, high net worth investors, family offices, and pension funds, the returns that Elliott Associates is generating as well as Honeywell Pensions, which reportedly parked more than $600 million to finance a slate of Warner Brothers’ films is opening the door to a Chicago company’s structure for being the next in a wave of attracting both institutional and retail capital.

“As a non correlated asset class, films and film finance has outperformed every non correlated asset class in the world”, states Yuri Rutman, head of media finance and consulting firm Noci Pictures ( www.noci.com ). “If you look at the more than $6 billion dollars poured into motion picture finance deals in the last 3 years, the IRR across the spectrum for both studios and independents are resilient to global economic declines in other industries.”

The Company is looking to bring on board an experienced hedge fund, private equity, or alternative investment capital raiser to identify U.S. and international private equity partners in both institutional and retail sectors in closing a $300 million dollar structured media & entertainment fund that would not only finance 20-30 films, but have the infrastructure in place for U.S. Theatrical Distribution either with one of a few major film studios the company is in talks with, or, as a stand alone distributor similar to Lions Gate or Summit Entertainment.

“The reason Wall Street, Silicon Valley, the Middle East, Asia, or European investors are all secretly wanting to be in the film business is that there is an exponential growth in terms of distribution channels. With digital cinemas on the rise, digital print costs minimal, the evolution of same day theatrical and video on demand releases, as well as leveraging global social media and marketing for lower cost advertising and word of mouth branding, filmed entertainment will always have revenue streams.  Even tech investors are starting to look at movies as technology in terms of their delivery methods as well as productions that utilize 3D or heavy CGI”, Rutman states.

Source- http://www.prlog.org/10363641-hedge-fund-job-in-film-finance-targets-hedge-fund-managerswealth-advisors-venture-capitalists.html

MoviePartners.com brings together producers, entrepreneurs, film investors, and screenwriters to develop higher-quality, more influential, and more profitable film and commercial projects. Over the last 15 years it has been its goal to become the filmmaker’s information services hub. They are in the process of revitalizing themselves and, by extension, the filmmaking community at large.

MoviePartners was founded in 1996 and created an award-winning filmmaker’s entertainment services community. They now provide location scouting, film crew lists, talent directories, etc., to that community. Its aim is to solidify a resource pool for those in pre-production to final cut. The phrase “it’s not what you know but who you know” is being rewritten here.

MoviePartners is now spreading its influence in the commercial development arena with innovative, less expensive approaches to quality filmmaking. Through the cooperation of its supporters, vendors, and founding members alike, they are setting new industry standards for high-quality production and low production cost.

From the earliest days of the Internet, MoviePartners assembled the contacts, experiences, and resources necessary to help its members succeed. Today will be nothing short of relentless towards completion of your specific project needs, start to finish.

In 2008, they redesigned and rebuilt the entire technology infrastructure of MoviePartners to better accommodate filmmakers and investors alike. They now offer services for the 21st Century, making it even easier to access and use the information they provide. They have a comprehensive refresh plan for all of their sites in the upcoming months of 2008 that will expand their capabilities, and yours.

“innovative”…“dynamic”…“exciting”…“rewarding”

Defending Art from Compromise
MoviePartners.com is a privately held company subscribing to fair and ethical business practices. Our film investors always have the highest quality products to peruse. At no time will art be compromised for profit.

Source-  http://www.moviepartners.com/About/

Some hedge fund managers watch Oscar ceremonies with great interest to see their funded films among the winners.

Several Oscar nominees, including hits such as “The Pursuit of Happyness”, “Blood Diamond” and “Borat,” were partially financed by hedge funds, loosely regulated pools of capital that are restricted to institutional investors and wealthy individuals.

Wall Street’s fascination with film financing has grown in recent years, with several private investment firms making agreements with major studios to co-finance slates of movies over a period of years.

With names like Relativity Media and Virtual Studios, these firms do not have the cachet or name recognition of the big studios. They certainly will not be sauntering up to the podium and thanking their agent should their films get an award. Even so, a win at the Oscars could be rewarding.

Relativity Media helped finance “Happyness,” whose lead actor, Will Smith, is up for Best Actor. An affiliate of Dune Capital Management, a hedge-fund firm once controlled by financier George Soros, kicked in money for “Borat,” the guerilla comedy starring Sacha Baron Cohen that is a nominee for Best Adapted Screenplay. And Virtual Studios, which is backed by the hedge fund Stark Investments, has invested in “Blood Diamond,” which is up for five awards, as well as the disaster-film flop “Poseidon,” which garnered a nomination for best visual effects.

This list reflects the growing ties between Hollywood and hedge funds and private equity firms, which have invested billions in movies since 2005, Bloomberg News reported last month. Two investors in MGM, the movie studio, are the buyout firms Providence Equity Partners and Texas Pacific Group.

It can be a risky business. Legendary Pictures, another hedge fund vehicle, has caught flack for its investments in box-office bombs “Lady in the Water” and “The Ant Bully.”

Yet some of these companies seem to have found gold in the Hollywood Hills. “Borat” cost an estimated $18 million to produce.  The tale of a fictional Kazakh reporter’s adventures in the United States has earned about $128 million in domestic box office.

Source-  http://dealbook.nytimes.com/2007/02/23/hedge-funds-at-the-oscars/

Movies that Matter, an initiative of Amnesty International, wants to open people’s eyes to human rights through film.
Movies that Matter has a strong international focus, resulting in a growing number of international activities. It promotes human rights film screenings worldwide, offers advice and assistance and stimulates the exchange of knowledge and experience. It stresses the use of the power of film to promote the observance of human rights a social change.

Apply for Funding

Movies that Matter offers modest monetary assistance to initiate human rights film festivals and to help circulate and exhibit human rights films in Africa, Asia, Eastern Europe, and Latin America.

Advise, Assistance & Echange

Do you want to organise a film festival or host a screening, but you don’t know where to start? Do you need more information on what films to choose for your project or how to clear the rights? If yes you can refer to Movies that Matter (www.moviesthatmatter.nl)

Source-  http://www.moviesthatmatter.nl/mtm/site/internationaal.vm?gclid=CK3_7OGgnqcCFYEOfAodDz8udA

Green Light Film Funding take pride on honesty and their ability to structure unique funding solutions that are not available in the traditional lending arena. The Funding Options, like those of any other industry, have changed drastically within the last 12 months. However, with GLFF’s combined 34 years of experience they know how to structure these difficult deals in today’s always changing environment.

Whether your film has most or none of the funding required this fund can provide solutions that exist outside the traditional sources. Fund’s investors realize the potential of funding films and that your film may be the next “Juno”,”Garden State” or “Passion Of The Christ”.

At Green Light Film Funding they eat, sleep and drink film financing. Whether you are a film maker or potential investor we look forward to sharing your vision and working together with you and your team in the near future.

     You can submit film projects for funding consideration. GLFF offers some incentives for film producers and various opportunities for investors to finance films 

Source-  http://www.greenlightfilmfunding.com/

The UK Film Council is the Government-backed lead agency for film in the UK ensuring that the economic, cultural and educational aspects of film are effectively represented at home and abroad.

Who they are and what they do The UK Film Council was created in 2000 and is the Government-backed lead agency for film delivery in the UK; Since its creation the UK Film Council has been the cornerstone of the British film industry and the funder of most of the big cultural film initiatives –  backed more than 900 films, shorts and features, entertained more than 200 million people and helped to generate approximately £700 million at the box-office worldwide.  For every £1 of Lottery money it has invested, £5 has been generated at the box office, allowing them to reinvest that recoupment straight back into new British films; Tim Bevan, co-founder and co-chairman of Working Title Films, is its Chairman, Tim Cagney is Managing Director; The UK Film Council currently employs 73 people across film development and production, inward investment, certification, co-production, film exports, statistics, distribution and exhibition, MEDIA Desk UK, industry relations, film partnerships across the UK, etc; Film Council funds and works with a number of different partners across the UK – including the regional and national screen agencies, the BFI, Skillset, First Light and FILMCLUB; Their goal is to help make the UK a global centre for film in the digital age, with the world’s most imaginative, diverse and vibrant film culture, underpinned by a flourishing, competitive film industry; Its support develops new filmmakers, funds exciting new British films and gets a wider choice of films to audiences throughout the UK. Council also invests in training, promoting Britain as an international filmmaking location and raising the profile of British films abroad; The Lottery money they distribute is key to keeping the engine of British film creativity running.

Diversity is one of our key policy priorities. They aim to help the UK film industry build a more diverse workforce: behind and in front of the camera.

UK Film Council is nurturing film talent, assisting the industry and celebrating film culture. This Film Fund is a new unified production and development fund dedicated to British filmmaking. It facilitate UK film’s contribution to the UK economy

Source-  http://www.ukfilmcouncil.org.uk

Film Finances was founded in 1950 for the purpose of giving guarantees of completion to financiers of motion pictures. At the time, producers of motion pictures were finding it increasingly difficult to borrow money from banks because the producers could not show how budget overages, if any, could be met. The original founders of the company were film producers who had learned that mortgaging all they owned against potential budget overages was not a sound proposition. Film Finances was therefore formed to provide financiers with a service that gave them the assurance that the film would be delivered on time and that the over budget costs would not be the financier’s responsibility.
FFI has given completion guarantees to all the leading banks involved in the entertainment industry, as well as all the major studios and distributors of motion pictures. FFI has now guaranteed the completion and delivery of approximately 6,000 Feature Films, Television Series, Movies of the Week, Films on Tape, Documentaries and CD-ROM Productions shot in all parts of the world.
 
Production Evaluation

As soon as an inquiry is made for them to issue a guarantee, they request the script, the shooting schedule and the budget.They prefer that all three documents have already been approved by the financiers and distributors of the picture. Documents are carefully examined to be sure on feasibility. When a positive decision is made, a “letter of intent” is issued by them confirming that they are prepared to go forward with the giving of a Guarantee of Completion, subject to the fulfillment of certain stated conditions. Most conditions are considered standard and apply to such things as financing, personnel, insurance and location agreements. The letter of intent will also list a number of budget for which we are not responsible. These above-mentioned conditions are incorporated in an undertaking required of the producers. The letter of intent specifies FFI’s fee for the giving of such a Guarantee.

The Legal Stage

When a letter of intent is issued and the project is approved, they then commence work on the legal documentation. This is all done in-house. In preparing the documents, FFI requires the fulfillment of certain standard conditions, such as, the assurance of financing equal to the approved budget, available and capable personnel, and satisfactory insurance, studio and location arrangements have been made. In addition, they require the documents that entitle the production company the rights to make the film
Film Finances is entirely an independent completion bond company with no affiliation. Being truly independent they are able to advice without the risk of any potential conflict of interest. Consequently, it is able to act in order to protect the interests of our clients at all times.

Monitoring Production

FFI needs to be satisfied at all times that the production whose completion we have guaranteed progresses satisfactorily and on schedule. However, it does appreciate that making motion pictures is a creative process employing fine talents.  FFI enjoys having a very close relationship with our producers, directors and key production personnel, and they are convinced that these relationships are more valuable than placing someone between us. Their monitoring process requires the production to fax to us daily shooting progress reports and a weekly cost report in order to properly evaluate the progress of the film. FFI also makes periodic visits to the shooting area.

The process of completing a motion picture continues well after the end of the actual filming. It also has a very experienced post production staff that monitors the post production of a film via a schedule and updated cost reports until the film is actually delivered to the distributor.

Source-  www.ffi-web.com/

FBT Film & Entertainment is owned by FBT Advisors, Inc., an affiliate of First Bank and Trust and a subsidiary of First Trust Corporation since 2001.  As a bank affiliate it offers a complete choice of
banking relationship products.  In addition it offers a range of broker services including investments, insurance, business advisory, and venture capital.   The unique ability to integrate these services
for its film industry clients gives it an unmatched edge over any competitor.

FBT Film started with the goal of increasing local community involvement with the film industry and the development of our industryhas been nothing short of remarkable.  They are actively working to
further expand the local film industry while assisting the state of Louisiana in recruiting new film projects.   It has also been instrumental in cultivating partnerships between out of state media
production companies and local firms to make the best use of available resources.  They take special pride in seeing Louisiana businesses grow and prosper as a result. It works with the Louisiana Film Commissioner’s office, statewide local municipalities, film liaisons and the UNO Foundation’s Nims
Studio to fully utilize the production capacity and studio facilities. Its Los Angeles staff has extensive experience in the entertainment industry and fully understands the process of organizing, financing,
and working within the Louisiana production process. FBT Film also proudly supports A Child’s Wish of Louisiana, a local organization which grants wishes to children with life-threatening illnesses.

Source-  http://www.fbtfilm.com

As a new financiers to the movie industry, Hedge Funds are  attracted by the potential returns on diverse portfolios of movies especially from DVD sales. Given, Hollywood has a bad reputation for parting star-struck investors from their cash hedge fund managers will need to stay sharp and structure their investments carefully. Helen Avery reports.
Film finance was often a high-risk/high-return investment proposition with a reputation for burning investors. Now, though, hedge fund managers are finding ways to mitigate risk and penetrate opaque film industry accounting practices

Frank Yablans is the Warren Buffett of Hollywood. Former president of Paramount Pictures and former chairman of MGM, the 71-year-old has more than 300 films, including blockbusters such as The Godfather, Serpico, Paper Moon and Murder on the Orient Express. Back in the early 1970s when Paramount made the original version of The Longest Yard, Yablans remembers, third-party financing came from tax-shelter deals. Now Yablans is running his own film production and distribution company, Promenade Pictures. With investment advisory firm Bluebay Capital, Promenade is seeking finance from the most recent investor base to hit Tinseltown – hedge funds.This sophisticated investor base has invested an estimated $4 billion into Hollywood in the past three years in investment vehicles that, like Yablans’s operation, and are attempting to create a high-returning asset class with speculative investment in the film industry.

In the past it has been a commonplace expectation that if you put money into Hollywood, you might not get it back, let alone a return on it. With an endless supply of investors keen for a brief spell in the sexy film industry, Hollywood can perhaps be forgiven for taking advantage of the naïve and star-struck. Returns were almost secondary
to them That’s not so for hedge fund managers. The possibility of making an annual 30% on investments (in the case of equity slate financing) is not the only appeal. Film financing offers uncorrelated returns. During economic downturns, people still go the cinema or rent movie DVDs. To mitigate and spread the risk and achieve high returns – is slate financing. Merrill Lynch, Credit Suisse, Deutsche Bank, Goldman Sachs and JPMorgan have all arranged co-financing deals with studios investing in slates of films, raising money from hedge funds and private equity firms among other investors. Hedge funds themselves, such as Dune Capital and Stark Investments, have also created
co-financing vehicles (Dune Entertainment, and Virtual Studios).

Spreading the risk
The importance of diversification is very important. Backed by hedge funds/private equity companies including ABRY Partners, Columbia Capital, and Falcon Investment Advisers, Legendary Pictures has invested $500 million in a slate of 25 Warner Brothers movies. The first two off the slate – Batman Begins and Superman Returns – have
proved successful; subsequent films – Lady in the Water and The Ant Bully – have been disappointing.

That’s true enough, but hedge fund managers are still finding ways to deal with Hollywood studios’ strategies for cutting deals to their own advantage. Stark’s films are with star cast, The Assassination of Jesse James by the Coward Robert Ford, starring Brad Pitt; 300, with Gerard Butler; Blood Diamond, with Leonardo DiCaprio; and The Good
German, with George Clooney and Cate Blanchett, though, investors have yet to see any returns.

Production costs also rise as films stars get millions for acting. But investors should not be focused on the big budget blockbusters to make money. Sometimes Smaller-budget movies with greater audience appeal can offer good rates of return.

Intrepid Pictures similarly has a financing vehicle investing in lower-budget films, (under $25 million) aimed at 15- to 25-year-olds. The seven-bank syndication of the deal was arranged by JPMorgan, with hedge funds and other investors providing equity or mezzanine financing.

Independent film production companies can offer investors phenomenal returns on low-budget films. For example, The Blair Witch Project and Napoleon Dynamite were produced by independent companies, and in the
low-budget genre of documentaries, independents have also had success. The Oscar-winning March of the Penguins had out-grossed all five best picture nominees at the time of the 2006 Academy Awards. However, investors should exercise caution in the lower-budget area, says Yablans. Yablans’s vast experience in the business mitigates risk for investors in his production company, but he advises managers wanting to invest in films with independent makers to do their due diligence. “People may boast that they appeared in film credits, but they might not have had much to do with the film,” he says.

 The quest for transparency
The due diligence that the hedge fund managers are conducting in Hollywood is helpful for complete transparency. Death by a thousand cuts Mead Welles, president and CEO of hedge fund Octagon Asset Management, invests in film financing across various parts of the risk spectrum
but is also wary of slate deals because of the lack of transparency and advises to be prudent. One executive with a co-financing vehicle on Wall Street laments: m“Studios are just not transparent. It’s hard to see fine details but we try to control operations.
Recognizing this risk in co-financing Hollywood, Yablans and Bluebay have structured their fund to ensure investors complete transparency with a hedge fund-like structure and, therefore, the returns they are rightly due. De Lazlo says: “We’ve brought in Goldman Sachs to handle cash management, we have other service providers to track and handle all operations to ensure transparency and expected returns. The transparency is in interest of both Hollywood and hedge fund investors.

Beyond the box office

Ultimately whether Hollywood can continue to rely on its new financing partner will depend on the performance of the new slate financing deals. DVD sales indeed can make very good profits.

It is argued that film quality has suffered as studios now have a vested interest in getting films out of the theatre and onto DVD as quickly as possible. Owning the copyright to the picture is therefore essential for any investors in film to make constant return.

Source- http://www.outofobscurity.com/downloads/Euromoney-Hedge_funds_and_film_finance-Oct06.pdf

If you want to benefit from the opportunity of taking your story idea to the big screen. Singapore’s Media Development Authority (MDA) has opened its third call-for-proposals under its International Film Fund (IFF) and is looking to co-invest in globally marketable films involving at least one Singapore partner. What’s more, completed films could premiere globally at ScreenSingapore, the week-long international cinema event comprising a trade show, conferences, master classes, a film awards section as well as red carpet gala premieres. ScreenSingapore, hosted by MDA and organised by Singapore
Airshow & Events Pte Ltd (SAe), is a platform for Asian content to be marketed to the world and for international films to be released in Asia.

Mr Kenneth Tan, Director of Film, Animation and Publishing, MDA, said: “The IFF complements our co-production strategy aimed at growing Singapore-made content targeting global audiences. It facilitates collaboration among international creative talents, and the participation of Singapore’s production and post-production facilities in international film productions. “Singapore currently has four official film co-production partner countries – namely Australia, Canada, China and New Zealand. We welcome filmmakers to work with us and our network of official co-production partnering countries through the IFF to realise their aspirations, and tell their stories to movie-goers around the world.”

Projects selected under the current round of IFF will be announced at the inaugural edition of ScreenSingapore from 5 to 12 June 2011.

About the International Film Fund (IFF)
The IFF was launched in 2009 to encourage Singapore production and postproduction companies to take on executive producer and/or co-producer roles in international film productions, ranging from
animation, live-action features and stereoscopic 3D content. The IFF will see MDA co-invest up to S$5 million for each selected project, together with investments from the participating Singapore companies and their international partners. The Singaporeans among its international cast include Asia Television Award Best Actor Adrian Pang and MediaCorp’s leading man Qi Yuwu. The film is targeted for release in 2012. The Harvest (working title), a stereoscopic 3D thriller-horror about the misadventures of a group of backpackers, will be produced by Singapore’s Blackmagic Design Films with Australia’s Goalpost Pictures.

Source BNA Tax & Accounting Copyright 2011 PR Newswire Association LLC
Gale, Cengage Learning
Source-  http://www.capitalequitypartners.com/film/press/Film-Finance.html