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Dresdner Closes $300 Fund For Paramount Pictures

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It’s another injection of high finance cash into Hollywood. Dresdner Kleinwort closed a $300 million fund to finance 30 films to be produced by Paramount and its children. The fund is being called Melrose 2, and the large number of films slated to be made is in part an attempt to diversify the investment—the idea is to make lots of smaller films, and look for a couple of big hits out of them.
It used to be film producers went to dentists and surgeons and other people with extra-money lying around who might be impressed by a proximity to Hollywood. Now the loose money is found in hedge funds, apparently. There’s lots of skepticism about just who is getting the worse end of this bargain—the investors who might just discover there isn’t much money left over in terms of profits once Hollywood accounting eats its way through the box office take or the movie studio people who will now have to answer to investors who might take a slightly more muscular approach to managing their film investments than traditional sources of Hollywood cash.
Paramount in $300m film deal with Dresdner [Financial Times]