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Posts Tagged ‘Hedge Fund Film Funding’

23
Feb

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 ...

23
Feb

Hedge Funds finance Hollywood.

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 ...

23
Feb

Hedge Funds and Film Finance

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 ...