Despite fears that the meltdown of Benjamin Waisbren’s operation might be a watershed moment for the end of the hedge fund dreams of Hollywood, the dream apparently lives on. Like some effin horror movie villian who gets killed at the end of each film but always returns for the sequel. Can someone please name the next one of these funds “Jason VoorheesCapital LP?”
An established Hollywood producer and technology entrepreneur has decided to launch a film hedge fund. Mark DiSalle is launching Colosseum Pictures L.P next month. The fund is organized to invest in full-length motion pictures and take advantage of DiSalle’s successful entertainment and business experience. Some of DiSalle’s past successes include legendary film cult hits like “Bloodsport,” “Kickboxer,” and the “Perfect Weapon,” as well as founding the software security company BioPassword.
Colosseum Pictures L.P.’s primary objective is to finance the creation of successful full-length films while retaining ownership of all of the motion pictures’ rights in order to maximize the long and short term revenues of these films. The philosophy of the fund is to make independent low–risk, high-profit movies with terms that favor the investors. DiSalle tells us “With the new tech wave of digital download and the rapid increase in film revenues, there has never existed a more opportunistic time to create content. Additionally, low budget concept movies will achieve the highest return on investment.”
New Film Hedge Fund [HedgeCo.Net]
“The philosophy of the fund is to make independent low–risk, high-profit movies with terms that favor the investors”
What, he expects you to believe that for the very first time in Hollywood’s near-century of history, production companies are going to lie down and give investors favorable terms? The three-card monty business model of film financing will be discarded?
How cute.
If the production co’s aren’t investing side-by-side with investors, taking a major hit in the overhead/development/producer fee arena or recouping after the equity tranche, you can expect things to get rocky for investors.
Production co’s that are looking for outside money are a dime a dozen. The question is do they want it badly enough to forego immediate wealth in order to reap the long-term wealth/value of their content and can investors get their heads out of their behinds quickly enough to realize that the A-list players are going to rape them.
Most of these producers are so coddled by the studio system that they can’t get on the same page as investors no matter how hard they try. Investors deserve it if these are the partners they choose. Joel Silver anyone? Man, that Frank Lloyd Wright house of his must cost a lot in upkeep…oh, wait, he just signed a lucrative deal for his genre label that allows him to stay a free agent. Hmmm…I wonder if he can increase production without compromising the quality of his films. It sure is a nice house, though…