New funds support P&A

The independent sector is finally finding help to cover the marketing expenses of theatrical releases. On Friday, Endgame Entertainment revealed a prints and advertising fund worth $400 million-$500 million for that discharge of films for example helmer Rian Johnson's "Looper." Meanwhile, Patrician Resource Management just guaranteed its first investment from the non-U.S. institutional investor because of its varied film financing fund. Endgame Delivering, the new P&A fund, adds a basis of equity augmented with a turning senior debt facility from Comerica and Union Bank -- two cornerstones of lending towards the independent sector -- as well as mezzanine debt from London-based Octopus Opportunities. "There's versatility included in this structure," stated Endgame Entertainment leader Douglas Hansen. Endgame Delivering will concentrate on theatrical releases reaching a minimum of 1,800 domestic screens by having to pay their $20 million-plus theatrical marketing campaigns. The wide-release can also be went after by established P&A bankers Clarius Capital and Qualia Capital. "It's safer for all of us to invest $$ 30 million than $20 million," stated William Sadleir of Clarius. "That could appear counterproductive. A lot of producers say, 'How inexpensively can one understand this film available?' however the film fails." Amir Malin, controlling partner at varied media financier Qualia Capital, which provided P&A for The new sony Pictures' "Planet 51," stated, "The amount of distribution expires however the commercial stability is lower. The majority of the distribution we're seeing don't merit a viable commercial release." At Patrician Resource Management, Hollywood marketing executive and senior portfolio manager David Forbes stated that P&A is most effective when there is a slate of films, so risk is not concentrated in a single or simply a couple of movies. P&A, though needed, is usually difficult to find since it is structured because the last money place in and first money compensated from theatrical rental fees, video and possibly other ancillary revenue in the same film. The erosion of video revenue upended P&A recoupment information. "To gain access to money today, you need a really strong foreign sales component and ancillaries in position (video and TV deals) to exhibit the revenue returning, even when the film will get only limited exposure within the U.S.," stated Mark Borde, who's co-leader of Freestyle Delivering, which supplies theatrical distribution for films supplying marketing costs. As the theatrical pipeline is less clogged with less releases, effectively marketing more compact game titles remains an costly challenge. "There is an excuse for P&A funding," stated Clark Hallren, controlling partner at Obvious Scope Partners, a Rizvi Traverse media financer putting together a P&A fund. Small independents searching for one-picture P&A deals are frequently left to solicit wealthy people. "There's very little P&A money available for indie films," stated John Flock, Boss of W2 Media. Contact the range newsroom at news@variety.com