Content material Companions, the large impartial proprietor of studio movies, TV and associated participations has launched Content material Companions Capital, a brand new division headed by leisure funding banker Alphonse Lordo to supply personal capital for leisure companies and IP belongings.
CPC is concentrating on IP-heavy enterprise fashions throughout movie, TV, and music and can make investments beneath numerous credit score buildings to accommodate an organization’s capital wants. Lordo will oversee origination and portfolio administration of personal credit score alternatives in what Content material Companions calls a pure evolution of its enterprise leveraging many years of investing expertise within the content material area.
“Content material Companions is launching CPC at a seminal second within the leisure business with a singular mixture of capital and strategic partnership,” mentioned co-founder and CEO Steve Kram. “Whereas we proceed to expertise important progress with our transactional IP funding technique, we’re excited to now step into the subsequent chapter of movie, TV, and music sector funding: offering the capital and strategic partnership to assist companies develop.”
CPC’s first operation was offering debt financing to Media Capital Applied sciences to assist its movie slate transaction with Lionsgate.
Lordo, beforehand managing director and head of leisure at Truist Securities, mentioned the logic behind CPC was twofold — Content material Companions had reached crucial mass and was able to construct out a brand new platform; and there’s an actual want for personal capital in offers beneath $100 million. “Banks have funding points, they usually have regulatory pressures. Enter personal credit score to sort of assist stretch past what a financial institution can do for shoppers,” he tells Deadline.
“As we assessed {the marketplace}, for any sort of deal construction, there weren’t lots of credible personal capital suppliers in that sort of $10 million to $100 million vary, and we thought that was a void that we may fill.”
“We all know the IP very nicely. We all know the enterprise fashions very nicely. We perceive them. We all know the danger match, and we all know the gamers … and thought nobody’s doing this in a means that’s partnership oriented, that’s right here to supply monetization for IP plus progress capital for producers, distributors, catalog house owners, funding companies who’re shopping for catalogs, funding companies which might be doing co-finance and slate offers” and wish incremental capital.
Content material Companions owns the rights to or pursuits in over 500 movies and three,000 hours of tv. Its library of movie titles from 13 Occurring 30 to Black Hawk Down, Black Swan and Hugo represents greater than $33 billion of worldwide field workplace income.
In TV, the agency co-owns the CSI tv franchise. One in all its massive current transactions was buying your entire 400-episode catalog of true-crime unscripted sequence Forensic Recordsdata.
The LA-based funding agency has owned Revolution Studios since 2014.
Content material Companions was based in 2006 by Kram and Steven Blume and is now the worldwide chief in buying movie, tv programming, music and associated royalties. It buys the belongings from traders, producers, writers, administrators, actors and musicians, concentrating on belongings which might be producing money move and have long run distribution offers with main studios, networks, publishers and different channels. It’s deployed nicely over a billion {dollars} on this market since launch.
