How does it work
MM Global Movies finances American and British film productions by means of ‘bridge lending’. This investment form is an alternative investment form based on “asset backed entertainment financing” and is almost completely independent of global economic movements. This investment form is located in a unique niche market with very limited access. MM Global Movies has access to this market.
What is asset backed entertainment financing?
This means investing in the entertainment industry, more specifically, the film industry. Asset backed means that all investments are supported and secured by multiple forms of assets in order to cover the risks. This form of risk management is carefully secured in warranty structures for each project.
EXPERTS IN BRIDGE FINANCING
The major studios produce films in-house. The producers finance this with their own resources.
Independent studios use the following forms of financing to produce a film:
Soft money subsidies
International domestic presales
Tax credit financing
The production of a movie goes through different phases and needs financing at several phases. Bridge lending is used in the early stages of a movie, where the producer temporarily needs money until the main capital of a larger financier is available. This is called bridge financing. This temporary phase can last from two months to a year after which the temporarily borrowed capital is repaid with interest. The revenues from bridge lending are therefore independent of the end result of the film.
As a bridge lender, MM Global Movies lends money to producers, provided that the production and financing application meet all the very strict criteria set in advance. The differences and advantages and disadvantages between investing in bridge lending and investing in the traditional way are shown below.
Financing of the entire production, with returns based on the proceeds and success of the film. The more popular the movie, the higher the returns. If the film flops, the result is lower or even negative.
Long term financing
Financial risk at every stage
Uncertainty about investement results
Returns depends on the movie's success
Financing of the initial phase only in which the returns are decoupled from the film result. As a result, the returns are known in advance and potential risks are covered by assets.
Short term financing
All investments are asset backed
Investement results known in advance
Returns independent of the movie's success
Niche market, no significant competition
Each project follows a timeline as shown below. Investments are usually made in various projects at the same time. The projects run alongside and independently of each other.
1 to 4 weeks depending on the complexity of the project
End of bridge
Duration depending on the project
Processing and completion
0 to 6 months