Beverly Hills, CA -- (ReleaseWire) -- 04/10/2014 -- Laureate BVI media/entertainment division will be working in partnership with financial institutions HSBC, Citco and Asholt Investments to arrange multi-film slate deals with studios and then arranging financial support.
Laureate reports, with movie studio’s wanting to minimize the risk and share the profits with investors, there are substantial opportunities to invest in well established sequels of franchise films such as “Planet of the Apes” and “Avatar”.
In January, 20th Century Fox sealed a US$400 million, multi-year deal with a private equity firm Magnetar Capital to finance the next two “Avatar” films.
Sony Pictures recently secured US$2000 million financing deal with LStar Capital and Citibank to cover the studio’s film slate, which includes “The Amazing Spider-Man 2” and “22 Jump Street”. Sony Pictures had been in talks last year with Blue Anchor Entertainment for a US$300 million to US$350 million but the arrangement was not finalized.
According to CEO Peter Tasca of Laureate,” when evaluating projects such as films, the principle of profit must justify the risk-return, we will not allow creative decisions to cloud our business model, as an investor you must always have an exit strategy”.
Laureate media division will focus on A-list actors such as James Franco who is currently raising funds for a slate of films based on his 2011 short story collection, “Palo Alto”.
James Franco stated, “Because of who I am, people often believe that it is easy to find investors and distributors for my films. Unfortunately, things aren’t that easy….We need more funding, I will still fund part of it but I need your help”.
In a note to investors Laureate stated, “we will only consider slate film projects that are managed by industry professionals with proven track records and the project must fit our business model”.
“The odds on a single film investment turning a profit are worse than the odds at the roulette wheel without any safety net,” says John Heyman, founder and chairman of World Film Group, who has raised US$3.8 billion in film financing. “A slate deal has a better chance of showing a return, and there is always the unwritten assumption that no studio dare let a slate investor lose his entire shirt”.
Tasca states, “we are also targeting independent studios that have access to top stars and filmmakers from Leonardo DiCaprio and Johnny Depp to Martin Scorsese and Christopher Nolan.
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Laureate Trust is a leading financial services company with a proud reputation for adapting to marketplace trends and delivering results to clients worldwide. The proven advisory teams combine product and sector expertise with access to global capital to offer exceptional results in any market environment. In 2013 this multiple platform strategy returned +23.01% net of all fees.
In 2014 Laureate launched a Referral Fee Programme that will pay 2% commission of the initial deposit and then a management fee for the life of the account. “We want our partners to benefit from every bit of success they help us generate” said Tasca.
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