The film business as a whole has been profitable for the past century and is continuing to grow. In terms of rate of return and market share variability, the industry has an impressive history of stability. Such resilience is magnified during downturns as film ends up outperforming other investment options. Resilience in downturn is equally matched by equivalent profitability during economic booms.
The independent film industry is capital-deprived, creating a financing landscape that can provide investors with a stable, accelerated recoupment, high yielding alternative asset class. Independent genre films, specifically horror, elevated horror, thrillers and sci-fi have extremely engaged audiences, international appeal and outperform many of the more wider audience, star driven drama and comedy films.
Cinema Nevard focuses firmly on, script and genre precision, bottom-line driven analysis, market validation and risk mitigation. Disciplined investment in film productions as a first position senior debt asset backed lender rather than an equity holder, provides risk mitigation that allows investors to achieve a low risk to high return profile. Providing productions with medium term liquidity by backing tax credits, minimum guarantees (“MG’s”), pre-sales and production gap loans on an individual film basis and subject to a comprehensive due diligence methodology, mitigates risk while providing performance upside. Negotiating a percentage ownership of each production (“Back-End”) allows investors to participate in the potential long-term commercial success of the films to which capital is loaned.