'Tom Cruise, Hedge Funds & Exciting Investors'

Hollywood films have recently attracted more than US$4billion from hedge funds and other institutions; it’s a very different story in New Zealand .  Richard Fletcher, Bingham Ray, Tony Bishop, David Court and Bill Birnie explored why the NZ film industry, when it’s supposedly riding high, can’t excite investors.  Are the barriers insurmountable?  Can a genuine market for investment in film be created? 

In the last five years the role of the producer has become increasingly complicated. Private finance has become an important part of almost all New Zealand features.  Producers are now faced with the complex task of balancing the creative concerns of a project, while also focusing on deal structures and finance agreements that can sometimes be as complicated as any screenplay.

The panel were all in agreement that if New Zealand producers are to further encourage international investment, a more cohesive and open approach needs to be taken. “First time producers really need to be prepared to share the pie if they’re going to attract international finance.”

Tony Bishop managing partner of iGlobe Treasury Management talked about the importance of proving to financiers why they should take interest in a project, and that producers need to consider an appropriate investment structure where risk is shared. “We like to see some skin on the table”. He also pointed out that it’s hard for investors to invest in someone without a track record - Investors want to build a relationship with producers, they’re not interested in onetime deals.  This can be beneficial for both parties as deal structures don’t need to be constantly re-invented and the risk for investors can be shared over a number of projects.

Richard Fletcher suggested that perhaps it was time for producers to start to share some of the complexities of deal structures from previous projects.  The panel agreed stating that we need to share information to help deepen the market. Perhaps it was time for producers to work together. Bingham Ray added that this was the way the American industry had been operating for quite some time.

Bingham went on to dispel the myth that financing was easier to find in the US ; first features films were usually financed by family and friends.  It was only after a successful feature début that finance started to seek out the filmmaker.

All agreed that tax based structures were not the sole motivator for investment and that the strongest capital a producer can have is a strong script.

Research into private investment opportunities in New Zealand is being underaken by the NZ Screen Council www.nzscreencouncil.co.nz

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