Because of their role in the production of the film, producers contribute a significant part of the budget
TV CHANNELS
Many of TV channels have to conceed a portion of their revenue to film production funding
DISTRIBUTORS
Distributors participate to the funding of films development and production, typically through the payment of minimum guarantees, and then take in charge the distribution and promotion of the film
GOVERNMENTAL GRANTS
Across Europe many institutions and grants exist and provide funds for producers from the development to the promotion of their work
PRIVATE FUNDINGS
In Europe, there are 6 private sources of funding:
20 specialized funds
20 tax-based funds
15 commercial banks
15 venture capital
1 business Angel network
TRADITIONAL PRE-FINANCING
Decrease in the traditional pre-financing fundings from TV channels and distributors. For instance in France, the first contributor among TV channels, Canal +, has disminished its contribution to films production by 25,5% (282m €) in 2018.
FILM FINANCING PROCEDURES
DEVELOPMENT
3 months min.
Purchase of rights.
Adaptation of existing book or story.
Scenario.
PRODUCTION
2 to 3 months
Unanimous agreement to start the production
Fundings are released
Shooting
EXPLOITATION
+Infinity
Theater release
Distribution on local and foreign markets
Diffusion on all media supports
PRE -PRODUCTION
3 months min.
Budget & financing plan
Preparation of the production
DISTRIBUTION
2 months
Communication strategy
Teaser
Press and media publicity
WHAT WE PROPOSE
TO THE INVESTORS
Offer an uncorrelated and diversified class of assets
Propose an attractive risk & return investment
Selection of low risk projects (multi country diffusion, recognised casting, reliable partners)
French fund managers with experience in the cinema and finance industries
Recognized, solid and reliable partner producers and third party providers
TO THE MARKET
Inject a new dynamic into the film industry by developing new private financing models
Create synergies between the cinema and finance industries in order to increase the transparency on the market and ensure a fair sharing of proceeds
Support international films not only via gap financing but also as from the development and financing plan phase, acting as co-executive producer
OUR FUND
TYPE OF FUND
Alternative Investment Fund Regulated by the AIF Manager Directive
DOMICILIATION
Luxembourg EU marketing passport Benefits from Luxembourg and European grants and loans
TARGET
10 million on first fundraising 12 million euros then
The goal is to raise 55 million euros within the next 5 years
MATURITY
5 years Capital closed during a 5 years immobilization period
COSTS
Management fees ~ 3% of the fund raised Brokers success fees 3%
ROI
IRR gross investors 9% 30% return on investment over the next five years