Downunder Film Investment Action Takes New Approach
Future Films Australia founding directors Sam Gullotta and Jas Sekhon have investment banking experience which they have used to help re-shape film finance as an alternative asset, rather than as a high risk, hit-and-miss venture that previously might have burnt some investors.
"...treat film like all the other structured products, like infrastructure bonds.."
"We've always had a passion for film but when we approach banks with our film projects, we've never had any luck... We thought maybe we should treat film like all the other structured products, like infrastructure bonds, that we've financially developed before," said Gullotta.
The group hopes to raise $250 million to fund 12 film projects, all of which will have an ATO ruling first so investors get the full tax benefits, in this case a first year tax deduction of 326 per cent of their initial capital contribution. However, investors also get a 6 per cent share of ‘gross' receipts, much better than the traditional ‘net of' payments in other film projects.
Their 50-50 joint venture partner is the already successful UK-based Future Film Group who cut their teeth funding a combined ₤1.8 billion in projects including Kill Bill 2, Hero, Princess Diaries 2 and Bend it like Beckham.