KEY SUCCESS FACTORS
Our fund is highly selective & proactive
We will analyse scripts, budgets, costs
and contractual arrangements to commit only to the most secure and profitable
Investment main policy
with premium talent: As in any private equity fund, selecting the production team is essential. Our fund aims to work with independent professionals having proven their capabilities in leading projects to profitable success. We focus on directors
and actors based on their track records and their notoriety : they secure international revenues and also answer at the audience’s needs.
film budget: as for any company a key objective is to control costs and to improve traditional efficiency ratios. Financing Tier 2 budget movies with a sales potential and premium talent allows the fund to raise European subsidies into the film
financing and to halve production costs.
revenues: Financial and commercial criteria are dominant. The fund analyses the projects considering their commercial potential on the International market. On the main European territories (France, Germany, UK, Benelux) we will anticipate
each segment of exploitation (cinema box-office, TV, DVD/VOD) in order to advance the local promotional costs and recoup the investments in first position on tickets sold, DVD/VOD revenues and TV sales.
- Selection criteria : experience of team (actors, directors, scriptwriters); originality, marketability and quality of the script.
- Fund actions : script evaluation, casting approval, budget evaluation (feasibility)
- Selection criteria : budget level, financing structure and estimation of the international sales revenues (based on the film genre, cast, budget, similar films…).
- Fund actions : cost control, marketing supervision and film quality.
- Selection criteria
: evaluation of the distribution revenues on each media and marketing costs evaluation.
- Fund actions : supervision of the distribution budget & marketing strategy.
Traditional film financing models oblige producers to sell all their rights. As a result, the film (as an asset) is indebted and this makes it impossible for investors to recoup their investment. By investing directly in the project from the very
beginning, our fund optimizes profitability for all the investors… and each
investment will be recouped in first position at each revenue phase.
The film industry is constantly
is growing, due to an increasing demand for content and broadcasting means. Global box office for all films released in each country around the world reached $35.9
billion in 2013, up 4% over 2012’s total (up 22% over five years ago).
Luxembourg, the heart of European Films.
Internet and Video-On-Demand services have revolutionised the film distribution; it has now entered into the global mass retail world. Luxembourg leads the way, with global players such as iTunes Europe or Amazon operating from
More recently, the newly elected government has re-emphasized the Luxembourg long-term commitment towards the movie industry and its very favourable business environment.
Luxembourg, is today the perfect country to set up co-production, to develop a rights acquisition policy and to finance films internationally.
THE EXECUTIVE BOARD MEMBER
500+ films produced, sold and distributed
The SICAR has been designed thanks to the association of European producer and distributor David Grumbach and Luxembourg investment fund expert Christian Denizon.
The management team is composed of international consultants that represent top European producers, sales agents and distributors who have been successful over the last 25 years.
The Fund enables this dynamic team to enlarge their commercial success by proactively
creating a union
of experience and a networkthat will develop, produce and distribute films such as our previous films : PULP FICTION, CHOCOLAT; MULHOLLAND
DRIVE, LIFE IS BEAUTIFUL, BUENA VISTA SOCIAL CLUB, TWILIGHT, AMERICAN PIE,
CEO of BAC FILMS.
BAC Films is one of the leading European labels for over 25 years, BAC Films specializes in the development, financing, production, and distribution of cutting edge films from around the world.
THE ADVISORY BOARD
The fund will also work with several consultants. They will evaluate projects and will bring an amazing deal flow.
- Erica Motley, formerly the Vice President of International Acquisitions at United International Picture in London, Erica is now a film consultant in USA.
- David Garett, CEO of Mr Smith Entertainment (UK) is an experienced sales agent that co-founded Summit Entertainment. He produced internationally successful hits such as the “Twilight” saga.
Dr P-A Delagardelle
DEPOSITARY BANK :
CINEMA SICAR, S.C.A., is a Luxembourg regulated investment company in risk capital (société d'investissement en capital à risque). It is incorporated as a partnership limited by shares (société en commandite par actions). Its registered office
is at 25A boulevard Royal, L-2449 Luxembourg.
It is represented by its general partner, CINEMA GESTION S.à r.l., a Luxembourg private limited liability company (société à responsabilité limitée). The latter's registered office is also at 25A boulevard Royal, L-2449 Luxembourg, and is
represented by its Board of managers.
GRAND DUCY FILMS is a movie production company fully owned by CINEMA SICAR, S.C.A. to invest in films.
Rights over a movie are not financial securities; it is not legally possible for a fund to invest directly in movies, which is why we have set up the production company named GRAND DUCHY FILMS.
This company will be established in Luxembourg and will be managed by our team. It will apply the investment strategy aiming at investing in about 45 movies over 3 years, maximum. This targets superior risk-reward patterns and the fund will
require guaranteed transparency & reporting for each investment.
Investing in the movie sector provides direct access to the movies financed by the fund: besides legal and financial information sent by the fund, a letter is sent to investors every six months. Moreover, the fund can organize meetings with
the actors and directors, and also offers invitations for premieres and festivals.
The management team pools sector-specific skills as well as management experience, they will be proactive with the film project team (project selection, scenario, casting, international sales evaluation, marketing costs optimization,…).
GRAND DUCHY FILMS can invests in
films at each stages of their lifecycle (development, production and
distribution). This approach optimizes revenues.
GRAND DUCHY FILMS’ investments, thanks to its investment policy, will become low-risk and recoupable at each stage of a film cycle in first position on each film revenues.
Thanks to an experienced team sharing the same vision, the funds turns into a unique film group creating synergies and a proactive international network.
Equity investment in films are today hardly profitable but financing actors, directors, producers and distribution companies allows to :
- Have a higher risk-diversification;
- Optimize control over each movie lifecycle (development, production, international distribution, domestic exhibition) and maximise profits;
- Ensure transparency in the financial accounting processes;
- Create a valuable rights' portfolio .
- Automatic liquidity of 2 to 5 years for a movie.
CLASSIC financing model
- Bank loan / gap financing: 20%
- International distributor 30%
- Investors 35%
- Producer's investment 5%
- Subsidies 10%
GRAND DUCHY's financing model:
duchy films) 35%
- Presales 20%
- Producer's investment 10%
- Subsidies 35%
- Upstream investment in order to structure the film financing;
- Amount invested answers the industry needs and gives advantages to each player that have the same interest;
- GRAND DUCHY recoup in first position and gives the best access in the waterfall revenues for its investors. We also gets copyrights;
- The film is less indebted (less presales, no gap financing), and European subsidies are maximized : the breakeven is much lower.
- Having access to a profitable and specific asset class;
- Retaining rights to the film;
- Increasing revenues;
- Access to a share of executive producer revenues.