BERLIN — In a sign that Germany’s private film fund market may be under increasing strain, Deutsche Capital Management has shelved its new IMF 4 fund, saying “general uncertainties” about the capital market regarding tax benefits and economic opportunities are scaring off investors and fund distributors.
Yet DCM, which partially bankrolled Hollywood titles such as “Terminator 3: Rise of the Machines,” “Alexander” and “The Aviator” with its IMF 3 fund, insisted that there were no real grounds for the apparent anxieties.
DCM said Thursday, it pulled the IMF 4 fund from the market after it appeared unlikely that it would reach the necessary tar-get volume of €50 million ($66 million).
IMF funds have raised more than $1 billion since the company’s establishment in 1996 and is set to back the upcoming “Ba-sic Instinct 2” with its IMF 3 vehicle, which managed to raise some $219 million last year.
While general unease surrounding the capital market is a main factor behind the German film fund industry’s current malaise, the market also has suffered from tightened regulations that have made the operation of film funds more complicated in recent years. Additionally, some film funds have been forced to shut down due to legal problems, further staining the business.