Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a748758

Film royalty fund seeks to offer 6% yield

by Robert St George on May 06, 2014 at 09:58

Film royalty fund seeks to offer 6% yield

A closed-ended fund that will invest in film distribution rights is hoping to raise £195 million at an initial public offering later this year.

The Paradigm Entertainment Royalty fund will have an initial portfolio comprised of films with aggregate worldwide box office receipts in excess of £7 billion and with 10 Academy Awards between them, and which includes franchises such as The Matrix and Ocean’s trilogies.

The fund will be managed by Village Roadshow Entertainment Group, part of an Australian media conglomerate formed in 1997. Village Roadshow will invest up to £10 million of its own money in the fund.

The trust will target a net dividend yield of 6% per annum, payable quarterly, and a net internal rate of return (IRR) of 9-11%.

The portfolio will not have any production or box-office risk, as it will invest only in films that have been released for more than one year. Revenues from the initial portfolio are diversified geographically, with for example 19% from the UK, 12% from Japan, and 10% from Germany.

Paradigm Entertainment will be structured to have a continuation vote after seven years and a realisation opportunity after 10 years.

Its annual management fee will be 1%, with a 15% incentive fee for returns above a 12% net IRR hurdle.

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

The Citywire guide to investment trusts

Investment trusts have proved to be a highly effective way to invest in the market. Citywire has interviewed the experts to find out more.

Investing for income in a changing environment


With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop

More about this:

Archive

On the road

Click here to find out more from the Audience Development team.

Read more...

Arbuthnot to sell structured products business

by Dylan Lobo on Jul 22, 2014 at 08:05

Sorry, this link is not
quite ready yet