Posts Tagged Film Funding
Hedge Funds as a major funding source for films
Posted by Mammad in Film Funding Resources on
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.
MoviePartners
Posted by Mammad in Film Funding Resources on
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.
Hedge Funds finance Hollywood.
Posted by Mammad in Film Funding Resources on
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/
Green Light Film Funding
Posted by Mammad in Film Funding Resources on
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/
UK Film Council
Posted by Mammad in Film Funding Resources on
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
Posted by Mammad in Film Funding Resources on
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
Posted by Mammad in Film Funding Resources on
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
Financing Opportunity for Film Makers.
Posted by Mammad in Film Funding Resources on
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
The Institute for International Film Financing
Posted by Mammad in Film Funding Resources on
The Institute for International Film Financing (“IIFF”) is an innovative, independent social-impact organization dedicated to bridging the gap between the worlds of filmmaking and finance. IIFF’s one-of-a-kind mission is to prudently expand the scope and appeal of film financing in an economically sustainable manner, for the benefit of all stakeholders including the public at large.
Established in 2003 by former investment banker Thomas Trenker, IIFF is incorporated in California as a not-for-profit, public-benefit corporation headquartered in San Francisco. IIFF remedies stifling inefficiencies in film financing and cultivates success in independent film by instituting a trusted platform for research, education, networking and collaboration at the nexus of film and finance. IIFF represents the interests —and addresses the challenges— of film entrepreneurs and investors alike, and serves the public benefit by reinvigorating independent film.
Democratizing Film Financing
Obtaining proper financing is the single most pervasive, yet most persistently overlooked, barrier to success in independent film. Even seasoned financiers and producers are often at a loss when it comes to effectively and successfully financing film. IIFF aims to create economic sustainability in film financing by enabling both filmmakers and financiers to consistently benefit from their interactions.
IIFF brings film financing knowledge, skills and opportunities to a broad and diverse audience. This opens new financing channels for filmmakers, exposes investors to an expanded menu of choices, invigorates local filmmaking communities and grows regional economies in which they are embedded.
The Best of Two Worlds
IIFF fuses the best practices and most effective strategies from the worlds of filmmaking and finance into a novel, innovative approach that heralds a new era of film financing. For instance, Silicon Valley’s proven model of entrepreneurship and venture capital offers a powerful template for successful and effective cooperation between entrepreneurs and financiers; this model lends itself not only to the financing of technology ventures but also to the funding of independent film projects.
Serving the Public Benefit
Regional film economies have long been stagnating or worse, due to a lack of entrepreneurial financing. IIFF not only assists in arranging film financing but it empowers filmmakers to build successful careers and financiers to pursue prudent investment strategies in film with a realistic set of expectations. IIFF benefits the general public by promoting and fostering sustainable regional economic growth, cultural diversity, community, philanthropic giving, freedom of expression, and the wonderful and universally inspiring art of independent filmmaking.
Empowerment by Education
Education is IIFF’s “weapon of choice” in fighting the pervasive inefficiencies of film financing. IIFF regards its educational mission as a two-way street wherein finance and film professionals learn from each other and from experts in their respective fields. Topical education also acts as a door opener for newcomers and a foundation for innovation in film financing. No other means offers the same, powerful leverage as education. Since its founding, IIFF has helped hundreds of filmmakers and financiers better understand and navigate the process of independent film financing.
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IIFF’s educational programs complement one another in bridging the gap that has traditionally kept filmmakers and financiers from achieving mutual success. IIFF supplements its educational offerings with networking events for filmmakers, financiers, entrepreneurs and anyone interested in film and finance. These gatherings include IIFF’s popular, monthly community meetings. True to IIFF’s motto of “democratizing film financing,” community meetings bring together a wide array of professionals from relevant backgrounds in film, finance and beyond for a vibrant evening of insightful presentations, inspiring discussion and focused networking.
Past IIFF events have reliably delivered useful insights into the business of film, purveyed quality education on film financing, provided valuable networking opportunities, fostered community ties between filmmakers and financiers, and managed to draw large and enthusiastic crowds.
Source- /www.filmfinancing.org
Prescience- film production, financing and international sales company
Posted by Mammad in Film Funding Resources on
Prescience is a unique, integrated media company focusing on film production, financing and international sales.
Prescience aims to provide the most appropriate financing options to producers. These range from development funding and equity finance through to debt and P&A. Prescience has a specialist management team that spans media banking, corporate finance and the production, marketing, sales and distribution of quality commercial filmed entertainment.
Prescience owns Metropolis International Sales Ltd and managed funds including the Aegis Film Fund. Prescience also has close links with the National Film and Television School and provides student sponsorship each year.
How to Fund Your Film
Posted by Mammad in Film Funding Resources on
How to Fund Your Film, the Film Finance Handbook, is the definitive source book for anyone looking to fund a film project – be it script, short, feature or documentary.
It puts in one place for the first time details of over 1,000 funds and tax schemes in some 50 countries, alongside exhaustive and easy to understand explanations of all aspects of indie film financing, from microbudget shorts and docs to multi-million international co-productions.
Over 40 experts from six continents have contributed to this exhaustive 480 page how-to and reference guide for filmmakers, producers, funders and advisers. The new edition features:
• All forms of film finance explained in-depth, including new methods like crowdsourcing and web based micro-finance.
• In depth international incentives (tax breaks and public money) covered for 50 countries (and dozens of states and regions), including the new UK, US federal and German tax incentives, written in collaboration with the legal experts in each country in language accessible for non lawyers.
• Details of 1000 funding awards from over 300 bodies.
• The internet as film studio; how to use the web for fund-raising, marketing and distribution.
• Cutting budgets, a guide to microbudget and digital techniques.
• Dozens of new case studies and interviews, including Oscar-winning producer Jeremy Thomas (The Last Emperor), Jim Gilliam (Brave New Films) – who raised $300,000 via the web, Susan Buice and Arin Crumley, whose produced YouTube’s first feature stream, Roy Disney, Gus van Sant, Nik Powell (head of NFTS and legendary producer), Lance Weiler, Matt Hanosn and Paul Haggis (Crash).
“Film is a tyranny, and the tyrant is money. The great thing is that, in spite of that, impossibly, some people keep on smuggling out messages of hope from the other side, past the tyrant. I mean, there shouldn’t be one good movie made given the way it’s structured, and yet there are many good movies made. That seems to be implausible and marvelous at the same time”
Source- http://www.fundyourfilm.info/
Financing Film Productions
Posted by Mammad in Film Funding Resources on
Film financing is one of the most difficult and least understood challenges facing a producer and it is fraught with perils for the unwary. Many independent film producers find themselves caught in the problems. Given that most film producers do not want to use their personal assets to fund their films, the most important issue for many producers is how to finance their film project with other people’s money.
The methods of financing film projects are as diverse as the film projects themselves, the most common ways being; “debt” (such as borrowing money); “equity” (such as selling membership interests); or a combination of both (such as a production support agreement). If the producer has a track record of successful film production, then additional sources such as “pre-sale” of film distribution rights or studio financing are available. And there are producers who merely package a project and assign the rights to another, better financed, production company. However, for most independent producers film financing is limited to debt and equity.
The problem with financing a project with debt is that such agreements require the payment of a sum-certain, with interest, on or before a specific date. There is repayment difficulties.
The other major source of funds, equity financing, is problematic because a securities offering memorandum and full disclosure is required under the securities laws and notice filings are required by the federal Securities and Exchange Commission (the “SEC”) Violations of the SEC requirements and the applicable Blue Sky Laws carry both criminal and civil penalties.
A business plan IS NOT a Private Placement Memorandum. A business plan and a securities offering memo serve very different functions. In order to safely comply with these laws, a producer should work with an attorney who is familiar with both entertainment and securities regulation.
The following is a summary of some of issues that arise when preparing a private placement investment offering under this exemption1. No General Solicitation. 2. Accredited investor requirements. 3. Disclosure requirements. 4. Filings.
As you might expect, an essential part of any request for financing is for the producer to develop a credible budget and production timeline. Without both of these documents, prepared by someone with experience in film production, the producer should not undertake any serious fundraising.
So, how do you solve the Producer’s Paradox? One possibility is to start with a short film and work up to a feature film project. A short is far less expensive, allows you to develop an understanding of the difficulties you will face with a feature film, allows you to develop relationships within the industry and it can become a calling-card for potential sources of funds.
Source- http://saperlaw.com/blog/2007/06/18/film-production-financing-and-investment-issues/ By Saper Law
Film Production and Investments
Posted by Mammad in Film Funding Resources on
Templeheart provide funding for film producers and is a film production company engaged in movie production and film investment. They work with film producers, film production companies and film makers to find the best projects that will give significant returns on any film investment.
Templeheart is also an independent research company and angel financier with a member community of high-net-worth individuals and angel investors who work together to help produce and finance feature films and West End musicals. They source, research and provide information to help match capital to impressive and dynamic film and theatre projects that attract industry renowned artists. Investments are possible in commercially viable film projects.
Source- http://www.filmproductioninvestments.com
The Cavalier Film Funds- a Film Investment Opportunity
Posted by Mammad in Film Funding Resources on
Cavalier Films, Inc. (the “Production Company”) is engaged in the development, production, and financing of motion picture films intended for theatrical release. The Production Company’s goal is to
produce story-driven and thought-provoking feature films with mainstream appeal on a low-budget. The Company intends to produce and finance feature films with limited and controlled budgets, and
considers investment in films principally produced by others. Emphasize is on the predictable, business-like return on investments, while positioning for the real possibility of windfall results
Management Team Relevant (Film) History
Mr. Sisson co-financed and worked with the production of a 2003 Sundance award-winning and widely loved feature film, “The Station Agent” (TSA). TSA was produced for under $1,000,000 and sold to
Miramax for theatrical release As part of the process of developing and testing the Cavalier Films business plan, the Managers worked together to produce a low-budget digital feature film, “Charlie’s
Party” (CP). CP is a comedy driven by its appealing subject matter and character development, and the comedic tension it creates. The film was completed on time and on budget for approximately $200k and is now in digital release, (download and DVD).
The first film to be produced under the Cavalier Films Banner, “Familiar Strangers”, was filmed in the fall of 2006. This film stars Shawn Hatosy, DJ Qualls, Cameron Richardson and Tom Bower among
others.
Because of their experience with these films and their previous successes in the entertainment and business worlds, the Managers are confident in their ability to create moving, intelligent films using
good business practices, which fill the niche market of art house cinema that the Hollywood Studio System typically acquires from outsiders.
The Independent Film Industry
The astonishing success of such low-budget films as “The Blair Witch Project” and “My Big Fat Greek Wedding”, $141 million and $241 revolutionized new independent film industry. Today, the major
Hollywood studios spend more and more of their resources on films produced by independents. This allows them to get more predictable return on their “intelligent market fare”.
This strategy makes perfect sense and is good business for them, while providing an opportunity for independent producers capable of producing quality work.
Independent films can vary widely in budget, from as low as $30,000 up to multi-million dollar productions. Small independent film producers prioritize crafting and producing their lower-budgeted, intelligent dramas and comedies. Unlike the Hollywood studios, the independent production companies are able to avoid substantial overhead. Investment Opportunity The Managers are seeking equity investment totaling approximately two million dollars to be for investment in films produced by others.
Shares shall be valued at $100,000. Full, half, and one quarter shares will be available to select subscribers. Investments shall be made to a Cavalier Film Fund, the sole funding source for Cavalier Films, Inc. Non-Financial Benefits for Investors Investments provide managers with the opportunity to experience the creativity and pride inherent in the production of feature films in many of its various aspects.
Financial Return on Investment
After the investors have received their preferred returns, additional income will be allocated 50% to investors and 50% to Cavalier Films, Inc
Source- www.cavalierfilms.com
How to finance your movie?
Posted by Mammad in Film Funding Resources on
When it comes to financing your feature film, Certainly you think about opportunities to make appealing movie to the audiences all over the world.
Would you like to receive money to go towards your production budget, and have a guarantee that it will be shown to an audience? If so, then welcome to the world of film distributor advances and pre-sales.
Presales are based on the script and cast selling the right to distribute a film in different territories before the film is produced. This is a primary means of film financing, especially when it comes to making bigger budget movies. Once the deal is made, the distributor will insist the producers of the film project deliver on certain elements of content and cast.
You can receive a worldwide presale, domestic presale or foreign presale deal, but usually independent producers are most successful at attempting the presale of foreign rights.
independent producers are most successful at attempting the presale of foreign rights.
The amount given to filmmakers in the form of distribution advances varies depending on the selected actors, director and the specific film genre. As a general rule, producers can expect to raise 60% to
70% of their budget from foreign presales and 30% to 40% from domestic advances. If you live in America it can be a challenging task to secure domestic rights for a film project that is in development.
Independent filmmakers usually have better success financing their films with a combination of equity money and foreign presales.
One of the keys to successfully securing a presale deal is working with a competent international sales agent or producers rep. An international sales agent is someone who travels the world in search of new and original ways to sell, license and finance movies. Their role is to create relationships with qualified film buyers and distributors in all of the major territories throughout the world.
They are informed agents for the producer. Agents increase filmmaker’s chances for success by tenfold. So what will all this potentially cost you? Generally speaking, international sales agents will charge
from 10% to 35% of the gross receipts from each territory your movie sells in. A producers rep usually earns a flat fee or a commission fee ranging from 5% to 20% of your films budget or revenue generated from the movie.
Getting the interest of a distributor in your project while it is in the development or pre-production stage will increase the opportunity of your film becoming a financial success. What is an effective method for contacting film distributors. What is an effective method for contacting film distributors? Email. You can
email a few film distributors, attaching a production budget top sheet, financing scenario and a one-page synopsis of your proposed film project.
If the distributor is interested in the film project they will request that you send them a copy of the films script to further evaluation the project. If they are attracted to the film project they will then discuss
details about investing money into the project i.e. casting and talent, distribution rights, contracts
When it comes to financing your feature film, Certainly you think about opportunities to make appealing movie to the audiences all over the world.
Would you like to receive money to go towards your production budget, and have a guarantee that it will be shown to an audience? If so, then welcome to the world of film distributor advances and pre-sales.
Presales are based on the script and cast selling the right to distribute a film in different territories before the film is produced. This is a primary means of film financing, especially when it comes to making bigger budget movies. Once the deal is made, the distributor will insist the producers of the film project deliver on certain elements of content and cast.
You can receive a worldwide presale, domestic presale or foreign presale deal, but usually independent producers are most successful at attempting the presale of foreign rights.
independent producers are most successful at attempting the presale of foreign rights.
The amount given to filmmakers in the form of distribution advances varies depending on the selected actors, director and the specific film genre. As a general rule, producers can expect to raise 60% to
70% of their budget from foreign presales and 30% to 40% from domestic advances. If you live in America it can be a challenging task to secure domestic rights for a film project that is in development.
Independent filmmakers usually have better success financing their films with a combination of equity money and foreign presales.
One of the keys to successfully securing a presale deal is working with a competent international sales agent or producers rep. An international sales agent is someone who travels the world in search of new and original ways to sell, license and finance movies. Their role is to create relationships with qualified film buyers and distributors in all of the major territories throughout the world.
They are informed agents for the producer. Agents increase filmmaker’s chances for success by tenfold. So what will all this potentially cost you? Generally speaking, international sales agents will charge
from 10% to 35% of the gross receipts from each territory your movie sells in. A producers rep usually earns a flat fee or a commission fee ranging from 5% to 20% of your films budget or revenue generated from the movie.
Getting the interest of a distributor in your project while it is in the development or pre-production stage will increase the opportunity of your film becoming a financial success. What is an effective method for contacting film distributors. What is an effective method for contacting film distributors? Email. You can
email a few film distributors, attaching a production budget top sheet, financing scenario and a one-page synopsis of your proposed film project.
If the distributor is interested in the film project they will request that you send them a copy of the films script to further evaluation the project. If they are attracted to the film project they will then discuss
details about investing money into the project i.e. casting and talent, distribution rights, contracts
Source- www.filmmaker.com
Footprint Film Fund
Posted by Mammad in Film Funding Resources on
Footprint Films and The Route Groups combined forces to launch a vehicle that provides budgeting for production companies making films, targeting yearly return of 21% for investors.
Film investments have traditionally been used for the tax relief but after legislations were abolished, interest decreased. Lisa Lambert, founder, business development and executive producer of Footprint Films said the idea the for the fund came as a result of wanting to make film an asset class in its own right fund came as a result of wanting to make film an asset class in its own right.
Thus a one-stop shop was created where top-end producers could get the majority of their budget.
The Footprint Film fund is a five-year closed ended vehicle that sought to raise $22m before the offer period ends $21m during its first year. This would allow Footprint to invest up to $150m in global film projects.
Lisa Lambert said: “I was working in the US looking for UK investors to help finance films. It seemed like an arduous way of doing it and I realized a lot of the time films were getting interest because of the tax relief and not because of the good films. With The Route Group, we decided we wanted to use film as an investment class itself and modernize a fund so investors get a good rate of return.”
Minimum investment was £50,000 and can be made in Sterling or US Dollar. Commission to intermediaries is available at 2%.
Source- http://financingfilms.blogspot.com/2007/08/footprint-film-fund.html
Independent Film Financing
Posted by Mammad in Film Funding Resources on
Filmproposals.com is very good spot for those serious about raising financing for their movie. It offers a wealth of tools, templates, information and resources, for both experienced and new and experienced movie producers. There are tools like film proposals and financial manuals, film financing excel template and business plan template. Film producers can find many investors through web site and learn how to communicate to maximize the film funding they raise. They also can showcase their film and get their own on the site. The site also provides tips for starting and making films. The sit also provides free business plan opportunity. Producers also can get technical advises and assistance
Source- http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aDMXKb0oqb34
Film Dream- Chased by Ivy-League Investors and Lehman Bankers
Posted by Mammad in Film Funding Resources on
After the crisis Lehman Brothers Holdings Inc Tokyo office’s some former employees went into film making. A few of the 346,000 workers they fired invested their leaving pay in pursuing dreams.
Especially Ivy League graduates are competing for backers among former colleagues, clients and a network that spans Asia’s investment, Ivy League alumni and independent film communities. Nyari, 28, and co- producer Engin Yenidunya, a Yale graduate, hold a weekly fund raiser party called Havana café.
Nyari and Yenidunya gathered more than $1 million for their first film “Wakiyaku Monogatari,” and have raised the same amount for their second, “Cut,” about a Japanese filmmaker who tangles with the Yakuza while trying to find money for a movie. Their production company, Tokyo Story, aims to give filmmakers outside Japan’s movie establishment a chance to make a feature.
Orlebar’s first picture, “Lost in Love,” a semi- autobiographical love story that cost HK$1 million ($128,662), is set in Hong Kong, where Orlebar was living at the time. It was shot over the course of a week in August 2007 and screened at the New York International Independent Film and Video Festival and Toronto’s Indie Can Film Festival in 2008.
Orlebar attented Hollywood film course whose former students include Tarantino and Ritchie. Lost in Love” won a Gold Kahuna Award for excellence in film-making at the 2009 Honolulu International Film Festival, before going straight to DVD with no theatrical release.
“I like more classical cinema, more drama and art-house films.”
Orlebar said he likes the way Yenidunya tapped into his Yale network and may contact Oxford alumni living in Asia.
The Havana Café meetings mix mostly non-Japanese traders, fund managers and executives Nyari and Yenidunya know from their careers in finance with the Japanese actors, actresses, directors and writers they’re working with.
“Wakiyaku Monogatari,” (Cast Me If You Can), is a romantic comedy by Atsushi Ogata, a Harvard University and Massachusetts Institute of Technology graduate.
“We’re not after people’s life savings — it’s an equity investment at the end of the day,” said Yenidunya, 29, who runs the Yale club of Japan and by day manages investments at a bank in Tokyo. “I’m putting both time and money into these films. So far, all I’ve lost is sleep.”
Meanwhile, Orlebar is ready to find investors for the $10 million needed to make “Future Fighters,”
Christopher Antonelli, head of pan-Asia equity finance sales at Nomura Securities Ltd., who worked with Orlebar at Lehman, put money into Orlebar’s first movie and said he’s considering investing in “Future Fighters.”
Orlebar began writing the script in late 2008 after Nomura Holdings Inc. took over Lehman. By December he was out of a job as Nomura cut the equities trading team.
“I thought: This is my chance,” he said. In March, he established Hong Kong-based Triumpha“The idea is to bring Hollywood quality at Asian prices,” said Orlebar, nt Film Funds. We’re trying to make a $30 million movie with $10 million.”
“The chief reason I joined Lehman was to pay off my student loan,” said Orlebar. “There comes a point in life where if you really have a goal, it’s only you stopping yourself from achieving it.”
Source- http://www.bloomberg.com/news/2010-09-08/lehman-bankers-chase-movie-dreams-tokyo-starlets-ivy-league-investors.html By Katrina Nicholas, Dave McCombs and Anna Kitanaka
Hedge Funds, Films and Money
Posted by Mammad in Film Funding Resources on
The global audio visual sector was expected by analysts to be worth $1.3 trillion by 2008 and hedge fund managers have wasted no time in attaching themselves to the high return sector of film financing.
Hedge funds investing in film, so far, include Mark Cuban, entrepreneur and owner of the Dallas Mavericks, and eBay founder Jeff Skoll, each have a fledgling film company. Billionaire Phillip Anschutz is financing big budget films, David Sacks, a founder of PayPal, financed “Thank You for Smoking,” for $7.5 million, and it has worldwide gross of over $27 million.
Real estate millionaire Bob Yari, is backing the production of numerous films. Bill Pohlad, a multi-millionaire made “Brokeback Mountain” for $14 million and it has grossed $184 million worldwide.
A recent $220 million deal with an individual producer included investors such as J.P. Morgan, D.E. Shaw, and GE Capital. George Soros also bought the DreamWorks library in a deal that valued the 59 film library portfolio at $900 million, later releasing all of them.
Then there’s the Tom Cruise/Wagner team, as a great deal with “two top hedge funds.” The deal will reportedly provide $100 million in revolving funds, which will be renewed annually, with an option to up the funding to as much as $200 to $300 million per year.
Now, 20th Century Fox is set to announce a hedge fund-backed film financing deal worth more than $520m thanks to the box office success of Borat and The Devil Wears Prada.
This market may grow steadily and we will most likely to see “bigger picture” in the future.
Source- http://www.hedgefunds-weblog.com/50226711/hedge_funds_movies_and_money.php
Entertainment company teaches film investment lessons to the savvy global investor
Posted by KunalBhatia in Film Funding Resources on
After several attempts of earning higher-than-normal returns, rich global investment companies and individuals are turning to films as an alternative to hot stocks, IPOs and hedge funds. However, unlike the past, the investor is making a more educated, calculated and diversified plunge into the world of film investing, all thanks to a Chicago based company called Noci Pictures Entertainment
This company teaches wealth advisors, portfolio managers, financial planners, accredited high net worth affluent investors and family offices about film as an investment avenue. Some of their lessons include concentration on diversifying the investment over 10, 20 to 50 films to minimize risk and increase theatrical distribution, the commercial viability of a story, as well as international distribution instead on concentrating on the very fancy monte-carlo model or allocating money in too many tranches of collateralised debt structures. Defying the norms, the company has opened up information which was previously available only to an inner VIP network of individuals. As other investment avenues look gloomy, their timing couldn’t be better in providing advise on films, which account for the number one export of the United States
“Historically investment in film was either structured without any risk minimization or the junior equity was crushed by the repayment of mezzanine & senior debt in large studio film slates”, states Yuri Rutman, CEO of Noci
“We have a lot of wealth advisers, portfolio managers, financial planners, and accredited high net worth affluent investors and family offices wanting to be educated about film as an asset class. A lot of former real estate developers, oil & gas speculators, hedge fund managers, and successful Silicon Valley investors seem to understand the model”, Rutman adds. “But when we have investment inquiries coming in from New Zealand, Europe, and Asian investors, the consensus seems to be that they all understand that no matter how the S&P’s, DOW, Yen, Bund, or Oil Performs in the markets, people are still going to want to see movies and be entertained”.
“There is really no longer an absolute need for movie stars to headline indie films as the films themselves seem to be star, especially with niche social media and marketing of films where the upside in revenues from theatrical, DVD, Video On Demand, Cable, mobile, and Internet VOD only increases the potential revenue streams”, says Rutman
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