The Opportunity.
-Are you a family office, fund of fund, HNW Angel investor, portfolio manager, sovereign wealth fund, wealth/financial adviser, pension fund, endowment, or other private equity group that is looking for a non-correlated alternative asset class investment that has outperformed every other non-correlated asset class in the world?
-Are you a foreign investor that is interested in an EB-5 Visa?
-Are you a U.S. Corporation or a high net worth investor looking to reduce your federal tax liability?
-Are you a global corporation that is looking at innovative branding opportunities in media & entertainment and/or perhaps looking at alternatives to buyouts in a limited media & entertainment space?
-Are you a registered rep, tax attorney, financial advisor, private banker, or wealth/asset manager who is aggressively and actively looking for risk minimized alternative investments for your clients?
-Are you disappointed with traditionally "safe" investments such as public equities, real estate, oil & gas, and the meager returns offered by financial markets?
-Are you always looking to be in a ground floor investment opportunity that seem to be closed off to an exclusive network of investors that have access to fast growing technology, internet, and other startups?
-Are you looking for innovative methods and strategies to reach consumers and entertain your clients?
If you answered 'yes' to at least one of these questions then you and/your company should consider a structured film finance slate investment opportunity as a non-correlated asset class as part of your overall portfolio.
Our concept and risk minimized alternative investment asset class structure is based on the following current marketplace trends and opportunities:
- Fidelity Investments, Fortress Investments, Honeywell Pension Fund, Elliot Associates, Dune Capital, Bank Of America, SilverHaze Partners, ABRY Partners, AIG Direct Investments, Bank of America Capital Investors, Columbia Capital, Falcon Investment Advisors and M/C Venture Partners are some of the institutions financing motion pictures.
- Fred Smith, the CEO of Federal Express, Norman Waitt, the Co-Founder of Gateway Computers, Jeff Skoll Of Ebay, Emilio Diez Barroso of Televisa, Todd Wagner and Marc Cuban , Max Levchin and David Grodnick Of PAYPAL, Marc Turtletaub of The Money Store, Roger Marino Of EMC Corp, former Chicago bulls co-owner Jim Stern, Sidney Kimmel Of Jones Apparel Group, Minnesota Twins owner Bill Pohlad; Real Estate Developer Tom Rosenberg; and, financiers Robert Sturm, Sheikh Waleed Al Ibrahim, Zeid Masri, Michael Singer, Mark Esses, David Larcher, Michael Goguen, Richard Landry, Michael Reilly, Rafael Fogel, Philip Anschutz, and Michel Litvak are just a handful of high net worth investors actively involved with film finance.
- There are various tradable state, federal, and international tax credit incentives that would offer a premium based on an equity position using IRS Section 181 and state tax credits and incentives that can offer returns of 60-100% of invested equity prior to revenues. For U.S. investors that qualify an example $1,000,000 investment would offer approximately a $400,000 reduction in federal tax liability and another $300,000 in cash via tax credits and rebates prior to revenues limiting the risk to 30%. If the investment is part of a larger film budget that gets 20-30% in pre-sales and gap finance, the risk exposure is virtually eliminated while the upside in revenues is limitless.
- Every production of a motion picture or new media project can create anywhere from 20-100 jobs over a 2-3 month period which can boost local and national economic development.
- With the explosion of international DVD, pay-per-view, home video, cable, & megaplex theaters, the future of multi-lingual Internet Video On Demand downloads, and cross-market digital distribution including low-cost theatrical digital projection, the movie industry is accelerating at an unprecedented growth rate.
- Film and other entertainment sectors are constantly outperforming and beating analyst expectations with regards to growth and are the only industries resistant to untimely global events and adverse economic conditions.
- Movie Investor returns may be more favorable and more liquid than holding direct equity positions in most public entertainment and other public companies, real estate investments, and other alternative investments.
- There is a huge demand and growing distribution structure for specialty films, as exemplified by the success of such films as "Twilight", "Paranormal Activity", “Brokeback Mountain”, “Sideways”, “Capote”, “Garden State”, "The Passion", “Napolean Dynamite”, “Y Tu Mama Tambien”, “My Big Fat Greek Wedding”, “Memento”, “Crash” , “Saw 1-6”, Friday The 13th”, “Halloween”, “Texas Chain Saw Massacre”, “Hostel” and “Wolf Creek”, which was made for $800,000, bought for nearly 4 million dollars prior to its release by Dimension, as well as “Hustle and Flow” which was made for $2 million dollars and bought for $16 million by Paramount Pictures.
- Apart from large blockbusters such as "Transformers", "Pirates Of The Carribean", “King Kong”, “Harry Potter”, and other large scale studio films, the majority of studio-produced films are all financed by outside film funds such as Relativity or Legendary.
- With the studios becoming more like distribution companies, a small amount of independent distributors in the theatrical marketplace, the cost of film prints being replaced with lower cost digital prints, the Company is realizing an opportunity to enter into U.S. theatrical distribution.
Noci Pictures Entertainment has structured a scalable and robust financial product and opportunity in film finance, production, distribution, and digital media.
Whether you are a $100,000 accredited high net worth investor, a $1,000,000 family office investor, or a $100,000,000 fund of fund or institutional investor, you have the opportunity to invest in a diversified slate of feature films and
- Benefit from one of the largest U.S. Federal Tax Reduction breaks ever put in place by the U.S. government
- Receive a high minimum return greater than most financial products
- Enjoy a high potential return based on single and multiple films' success
- For online digital media, realize a large international advertising revenue base
- Promote your company/brand through various innovative PR and marketing opportunities
- Be involved in stimulating the U.S. economy through job creation
- Be part of a slate of films where your profit is based on 20 or 40 films which even 2 big breakout hits out of the slate will surpass your ROI expectations in addition to short term revenues generated by immediate cash flow from the monetization of international tax credits and rebates, distribution guarantees, and other risk minimization factors
- Understand that your upside in revenues will greatly be enhanced via a guaranteed U.S. theatrical distribution deal
Noci Pictures Entertainment has an innovative way of custom scaling investments that provides absolute ROI prior to global revenues or profits using United States, Canadian, and international tax incentives and guarantees that hedge investments by offering tradable film tax credits or rebates that are monetized as cash. In certain instances, the cost of selling international distribution rights to a particular film may also cover a portion of an equity position prior to remainder Territories.
U.S. Film Incentives
In the United States, Noci Pictures leverages tradable film tax credits and rebates with IRS Section 181 to both institutional and qualified affluent accredited investors who currently have investable assets but are seeking alternatives to traditional investment opportunities. We minimize and hedge equity risk by:
- Offering 30-100% ROI on invested equity prior to any revenues using monetization of state tax credits and IRS Section 181
- Pre-selling 20-40% or more of a film's budget prior to production, thus reducing the total equity exposure per film.
- Financing & Co-financing a portfolio of films
- Guaranteeing U.S. theatrical distribution based on our final maximum target AUM (Asset Under Management) or in the alternative, partnering up with a major U.S. studio or distributor.
- Custom scalability of investment allocation for film budgets ranging from $100,000 USD to $100 Mil USD.
"From the very beginning we built this plan specifically around private equity
and returns. I myself would not have done this deal six or seven years ago.
But the advent of DVD and overseas expansion of the box-office has made
the movie business much more attractive as an asset class."
Thomas Tull, CEO of Legendary Pictures, announcing its $500 million slate investment deal with Warner Bros via Bank Of America, Arbry Partners, MC Ventures. And follow on rounds from Honeywell Pension Fund estimated at $600 Million
Canadian Film Incentives
Canada continues to be one of the best places in the world to film motion pictures because of its superior incentives that are both Federal and regional adding overall value to a film's budget and minimizing investor equity risk. Further, in today's current economic climate, accessing gap finance through a Canadian bank is superior to many other jurisdictions in terms of efficiency and closing times.
Many Canadian cities easily substitute for U.S. & American ones, and the costs of production, due to a favorable exchange rate for Canadian dollars, is extremely competitive.
Noci Pictures Entertainment accesses many of the incentives available in regional provinces on a film-by-film basis, which in effect allows it to partner with hybrid private/public co-financing entities that are strictly regulated by the Canadian government, thus giving investors a high level of confidence in knowing that their equity positions are in certain cases matched dollar-for-dollar by Federal and regional investment dollars.
"Wall Street is well aware that the movie business has been notoriously
harsh on private investors. But it’s not the movie business of a generation
ago, or even a decade ago. In recent years, the US film industry has quietly
built substantial, multiple, global revenue streams – and big-money private
investors have taken notice. Despite the general perception of the film
industry as a hit-or-miss kind of business, Wall Street bankers point out that
there are fairly predictable cash flows in a slate of pics. The key here is
having a diversified slate, not just one or two movies.”
--Daily Variety Magazine
International Film Incentives
From Brazil To Germany. From France to Spain. From New Zealand To Belgium. South Africa. Portugal. Austria. Australia. UK. Fiji. Colombia. Hungary. Romania. Czech Republic. Slovenia. Ireland.
- The list goes on and on of many countries where film production is subsidized by regional and federal film funds that in some cases can cover more than 50% of a film's budget. And what that translates to is a nominal equity position that triggers the finance and in certain instances may be covered up to 100% from foreign pre-sales. An example of this is shooting a film in North Rhein Westphalia, Germany. See German Film Finance Or FilmStiftung NRW. An example would be the following breakdowns on a $10 million dollar film that is shot in that region and which Noci Pictures has an equity position.
- 50% Via Regional & Federal Film Funds. $5 Million
- 30% Via Noci Pictures Entertainment. $3 Million
- 20% Via Gap Finance. $2 Million
- 30% Via Pre-Sales From 3-5 Countries. $3 Million
- 10 additional territories sold upon completed film. $5 Million
- Repayment Of Gap Finance. $2 Million
- Initial Revenues to Noci/Private Equity Investors. $6 Million
"Across a slate of 20 or 30 films, just two or three hits will all but ensure
a positive return for investors, based on over 30 years of historical
performance data from the film industry.”
Paul Kent, SVP Citibank
Euromoney Magazine
