Group's looking for multiple partners
A correction was made to this article on Oct. 27, 2006.
NEW YORK — The Cinema Finance Group has raised a new $250 million fund to finance films in the $10 million-$50 million range, with a flexible additional budget for TV, DVD, music publishing and recordings.
David Kelly, a financial consultant active in the entertainment biz, will be advising the group — which represents investors from London, Zurich, Monaco and Dubai — and oversee selection of projects for the new fund.
No pacts are in place yet. But the announcement underlines the seemingly endless flow of dough into Hollywood as outsiders increasingly pick up the tab for newly cost-conscious studios.
Kelly said the cash will be directed to one-off projects with a range of producers — unlike other deals, which usually back a studio slate or a slate of pics from a single filmmaker. But hedge funds are supposed to hedge their risk, he noted, which means spreading the wealth.
“A slate of pictures with different producers and different studios is not necessarily an ideal thing for the studios, or for the producers, but it’s an ideal thing for the investor,” he said.
He’s looking to do a minimum of six and maximum of 12 pics per year.