WHAT

Fi Films is an entertainment producers´platform to co-finance risk-adjusted, commercial only films, managed on a portfolio basis.

Target Fund Size                         US$150 Million

Fund Structure                            RAIF (Reserved Alternative Investment Fund) to be established in Luxemburg

Minimum Ticket                          US$ 5.000.000

Expected Dividend                     6% from 3rd year until maturity

Expected net IRR                        >20%

Hurdle rate                                  15% with full catch-up

Carried interest                           20%

Management Fee                        2%

Investment Period                      5 Years

Duration                                       5 years +1 +1

HOW

Creating value trrough a combination of key factors:

  • Key Partnerships with Hollywod´s top Porducers, as Resonate Entertainment, Hollywood Gang, Empire Films, among others, all with a proven track record of revenues of US$ billions in the Industry, working with some of the biggest stars.

  • Structured approval greenlight process to increase the likelihood of success, enhance the creativity and improve the profitability of chosen films.

  • A seasoned management team with broad experience in films, media, entertainment production, distribution, marketing, structuring and financing.

 

Financing conservatively:

  • Co-financing.

  • Maximizing tax incentives.

  • Securing distribution before any production capital is invested.

  • Recycling cash-flow into projects.

  • Utilizing conservative debt facilities to expand capital base.

Managed on a portfolio basis:

 

  • Co-investing in c.13 large/medium-sized films and c.25 movies directed to Library

  • Targeting three different audiences: 1) Female/Family, 2) Epic/Historical, 3) Movies made for Library.

Primarily focused on the US$80-90 million budget range, and  US$7 million of commercial only films, hence avoiding competition of Big Studios, as they focus increasingly on larger budget tentpoles (e.g. established and potential franchises)

Fi Films will invest in several types of films:

1. Female and Family audience-targeted:

  • Representing 50% of the world population, women contribute to decide c.85% of films for family entertainment.

  • Fi-Films believes that these targeted audiences would contribute to its commercial success. Moreover, production costs are not as high compared to other genres that require higher investments (e.g. FX or VFX).

2.  Epic-Historical events:

  • Fi-Films would co-invest in Epic-Historical events films that have proven to be highly successful. Moreover, Fi-Films is securing the rights to make 4 movies related to historical events from Spain. 

3. Non-Theatrical (Library):

  • Home Entertainment, Streaming, Cable and TV Broadcasters and the like need content increasingly to fill their programming due to fierce competition. Fi-Films would devote part of its production to these revenue windows , skipping theatrical. 

4. Opportunistic - Gap Financing in Tentpoles:

  • Only when the opportunity arises and Fi-Films assesses there is an attractive risk adjusted return, it would decide to complete the financing of a major blockbuster.

WHY

Why films are an attractive asset class?

  • Films produce enticing returns if structured properly with focus on optimizing prodution costs.

  • Films´returns are not correlated to the stock markets.

  • Income is obtained  into perpetuity: three cycles of ten years each.

  • Film entertainment is proven to be recession resistant

  • Material tax incentives available on a local basis in most countries.

  • Portfolio management approach diversifies and mitigates risk.

  • Thoughtful capital allocation and prudent capital conservation brings about valuable film assets accumulation.

  • Film assets globalization still has to happen fully.

  • Films asset values continue to be enhanced as new distribution technologies keep on innovating.

© 2020 by FI FILMS