Ingenious today announced their intention to launch a fund dedicated to the financing of film distribution. The €150 million fund will invest alongside some of Europe's leading independent distributors to finance the distribution rather than the production of films. Ingenious will take a ''slate approach'', backing a distributor's entire portfolio of films and financing the acquisition of new film rights and film libraries.
Ingenious plans to partner with a number of the most commercially successful film distributors in Europe and will help finance the distribution and marketing of over 100 films.
The new Ingenious fund will focus exclusively on the ''tail'' of the film cycle, distribution and rights exploitation of films, which provides lower risk investment opportunities. Across all the different stages of film - development, pre-production, production, post-production and distribution - those engaged in the final leg, distribution, are typically in a priority position to recoup their costs and earn income from the first pound of revenue.
Duncan Reid, Commercial Director at Ingenious said:
''Film distribution is one of the most profitable yet underinvested parts of the global film industry. The new fund will provide much needed capital for independent distributors looking to build larger film portfolios and improve their bargaining power with broadcasters and DVD retailers. For investors, the fund gives diversification and exposure to the most secure revenue stream in film with an attractive risk/return profile.''
About Ingenious Film Distribution
With a minimum investment of €1 million, Ingenious plans to raise €150 million from institutional and high net worth investors via a private placement of loan notes to be listed in Ireland. The fund has a targeted IRR of 25% with a recapitalisation planned for the end of year two and further returns over years three to five. The investment is expected to have a five year profile and funds will only be drawn down when required over a planned two year investment period.
About Ingenious
Ingenious, which was founded in 1998 by Patrick McKenna, former Head of the Media and Entertainment Group at Deloitte and Touche and chairman and CEO of the Really Useful Group, is a specialist media investment and advisory group with five principal operating subsidiaries; Investments, Corporate Finance, Asset Management, Ventures and Consulting. A Securities business will be launched later this year. As the market leader in media investment and strategy, Ingenious provides the full range of services to companies in the media sector, from strategic and corporate finance advice to private equity funding, as well as providing innovative investment solutions for the private investor.
Ingenious Media
Duncan Reid
020 7319 4000
Fishburn Hedges
Andy Berry/Andrew Reid
020 7839 4321