Independent TV & Film Financing
One of the greatest challenges for any independent television or film project is raising the necessary capital to produce the project and structuring the financing in a way that protects both producers and investors.
​Having professional business plans and proper corporate and legal structures in place demonstrates to potential investors that your film project is a well-organized, legitimate investment opportunity. Though experienced investors know investment in any entertainment venture is risky, they still want as many assurances as possible that they will see a return on their investment.
​For a fraction of the cost of a larger law firm, we can provide the documents and advice that will give you an enormous advantage over the thousands of other entertainment professionals competing for those same investment dollars. We will also protect you and your investors so that your time, effort, and expense will be repaid in the event your project obtains distribution.
Equity Financing
Equity Financing
Equity financing is an investment in a project (as opposed to a loan) and those providing the financing generally own a portion of the project (usually through an entity created by the parties commonly known as a production limited liability company (LLC) or special purpose vehicle (SPV). Like debt financing, the terms of the investment vary widely depending on a variety of factors including the amount of the investment, the production budget, the experience of the producers, attachments to the project (such as “name” actors, directors, or writers), the recoupment strategy and the nature of the project financed (e.g., a documentary versus a horror film).
Producers prefer equity financing since the investment need not be repaid unless the project recovers its budget (and typically other customary costs of distribution, such as sales fees and distributor fees). However, equity financing tends to be more complicated than debt financing. It is subject to state and federal securities laws since TV and film financing investments generally constitute securities under state and federal law and typically require registration (or exemption under Rule 504 or 506 offerings) with the Securities and Exchange Commission. Failure to register with the SEC, or more commonly, to properly proceed under an exemption from registration, can result in civil penalties and even criminal liability.
The firm is experienced in handling all types of equity financing and can prepare all necessary documents, including business plans, private placement memoranda, financing agreements, and subscription agreements. The firm will also form the investment entity (corporation, limited liability company, or partnership) and organize the entity, including the preparation of the governing documents (i.e., bylaws, operating agreement, or partnership agreement).
Debt Financing
Debt financing tends to be less complicated than equity financing, but it is generally less appealing to TV and film producers, as it requires repayment of the financing regardless of the project's commercial success. These arrangements typically involve producers (either directly or through a special purpose entity created for the project) borrowing the necessary production funds from institutional lenders or accredited investors (as defined by SEC Regulation D). The terms of debt financing vary widely in terms of the interest rate, the loan length, and the security provided to ensure repayment. There is less risk for financiers, but more pressure on producers, as repayment is not contingent on the financial outcome of the project.
If you are seeking assistance with the financing of a television or film project, contact us at 323-230-6200 or click here.
The firm has extensive experience in financing TV and film projects through both debt and equity financing arrangements.
If you want to independently finance a feature film or scripted or unscripted television series, we can help.
