Hedge Fund Investors
Hedge Fund Investors for Big Budget Film Finance
When seeking film finance, there are many different options you have at your disposal, and surprisingly one of these is to look for hedge fund investors. Hedge fund investors are having an increasing influence on the industry these days. For those who are unaware, a hedge fund is essentially an investment structure that involves pooling capital from a number of different investors. There are many different strategies that can be used by these investors, with a common one being leverage, which means investing in borrowed money. Most investors tend to utilize long-short strategies, meaning that they invest in a balance of both short positions and long positions. This is not a new concept. In fact, hedge funds have been around since 1949, although they did suffer quite a hit after the global recession, which resulted in the closure of many. But, as we go through the period of recovery, they are becoming a popular solution again, and a lot of filmmakers are turning towards these investors instead of using the services of a conventional investment company.
Hedge fund investors are always seeking alternative investments, so they can spread risk and also to take advantage of tax incentives. From The Hobbit to The Hunger Games, many major films have been financed with hedge funds, and it benefits both parties because the investors can make a quick return on tentpole movies. They will lend the money to the filmmaker during the production process, and it will then be paid back at a higher rate of interest after the film’s release in six months to two years. The Movie Fund is dealing with hedge funds on movie studio and big budget movies, packaged movie properties, and I.P book rights.