Port Funds tap into Asian film industry

  • Story by: Gemma Westacott
  • Magazine: FTAdviser
  • Published Tuesday , January 20, 2009

Port Funds SPC has launched a Movie & TV Opportunities Fund to take advantage of Asia's growing media production business.

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The fund, which aims to finance independent films in Asia, uses no leverage and targets absolute returns of 25 per cent per annum.

This will be achieved by utilising a pre-sales strategy that allows all budget outlays to be recouped through the early sale of distribution rights and subsequent revenues from TV and DVD sales and rentals.

Port Funds SPC explained that the fund has a pipeline of low-budget films ranging from $5m to $20m, including a film staring Wesley Snipes called 'Chasing the Dragon', which is scheduled to begin shooting in Bangkok early in 2009.

As an example of how the pre-sales strategy works, distribution rights of this film have already been sold for $12.7m, which is greater than the film's budget of $11.3m.

Port Funds SPC added: "Even if the film has only a modest success at the box office the additional revenues from TV and DVD sales and rentals will provide a significant financial return."

The fund's investment panel is led by David Winters, of West Side Story fame, who is now committed to filming action and animated films in Asia.



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