Film Funding Blog

Hedge fund money continues to flow to Hollywood. This deal is interesting in that the funding may go to support independent films, as opposed to the mega tentpole releases.

Lionsgate is wrapping up a $210 million slate financing pact led by Goldman Sachs — a sign that hedge funds remain attracted to Hollywood, or at least to particular deals, despite mixed results in 2006.

Lionsgate agreement covers 23 films, excluding the “Saw” movie franchise and pics from Tyler Perry of “Diary of a Mad Black Woman” and “Madea’s Family Reunion” fame. Perry’s next is “Daddy’s Little Girl,” due out in February.

Lionsgate will receive a distribution fee of 15% — on the high side for slate deals — showing just how the mini-studio has impressed Wall Street with its track record and its model of modestly priced pics.

http://www.variety.com/article/VR1117957559.html?categoryid=13&cs=1