Movie finance is one of the most important aspects to filmmaking; second only to a good screenplay. For producers, directors, and screenwriters trying to raise film finance for their next production, S&R offers a wide variety of movie finance options.
Movie finance is at the core of S&R’s business. S&R Films controls a film fund of private equity and has been investing in feature length motion pictures since 2011. In order for a film to be considered for equity film financing, the movie or production must exhibit inherent mitigated risk by having secured assets that outweigh the total budget based on current marketplace trends. Such qualifying assets include ‘bankable’ name talent, ‘bankable’ name directors, and presales or minimum guarantees on limited territories where such presale values indicate a robust potential profit margin on remaining territories for the film’s equity tranche.
S&R provides film debt financing collateralized against all bankable assets and instruments including but not limited to presales and minimum guarantees issued by trustworthy distribution companies, personal guarantees from high net-worth individuals, and property titles. Depending on various factors, a completion bond may or may not be required. For example, S&R provided debt financing for “It’s So Easy and Other Lies” with domestic and international presales as collateral.
S&R provides financing against projected film tax incentives on projects being run by qualified unit production managers. Depending on various factors, a completion bond may or may not be required. Such qualifying factors include but are not limited to issuing state or country, budget, producer(s) history, director history, and UPM / line producer. As tax incentive projections are speculative, all tax incentive financing provided by S&R is structured as debt and sits in the senior-most position.
We understand the chicken-before-the-egg conundrum that can exist in filmmaking. Filmmakers may have investors lined up, but there are certain conditions that need to be met in order to trigger their financial commitment. On the other hand, the conditions required in fact cost money on their own. While these scenarios are not common, S&R can provide short term bridge loans to back offers or secure assets provided there is an executed promissory note from a ‘bankable’ investment firm, or high net-worth individual or entity.
Outstanding film packages that are seeking 100% of their financing or only partial funding may qualify for arbitrage opportunities. Qualifying projects are identified when S&R negotiates purchase prices from US domestic and/or foreign distributors, and where said prices provide a healthy margin of profit vis-à-vis the required funding. If a film qualifies, S&R can provide full financing simultaneous to the execution of a long-form agreement assigning sales rights to S&R with pre-negotiated returns on its funding.