The Rs 22,000 crore Indian film industry is attracting a new wave of financial investment from funds like Filmoney Global and CineNow, which are strategically positioning Indian cinema as an emerging alternative asset class for high-net-worth individuals and institutions.
Key Points
- New financial investment funds are entering the Indian film business, aiming to establish cinema as a new asset class for HNIs and institutions.
- Filmoney Global is launching 10 special purpose vehicles (SPVs), each ranging from £5 to 10 million, to invest in youth-centric, high-concept, theatrical-first films without big stars.
- CineNow, a $150 million fund, is positioning film intellectual property as an alternative asset class, planning to fund over 30 films with budgets from Rs 3 crore to Rs 300 crore.
A new kind of capital is making its way into the Rs 22,000 crore Indian film business. It is not private equity funds or strategic investment.
Rather, it is pure financial investment from funds that have raised money from high-net-worth individuals (HNIs) or institutions keen to invest in Indian cinema, much like they would in stocks.
These funds aim to make Indian films a new asset class, somewhat like the highly sought-after Indian Premier League (IPL) teams.
New Investment Avenues for Indian Cinema
Two such funds — Filmoney Global and CineNow — have already made their opening moves. The first of 10 special purpose vehicles (SPVs) from Filmoney Global is about to close.
The £5 million SPV will identify and invest no more than a million pounds per movie. Each of the 10 SPVs will range from 5 to 10 million pounds, or dollars, depending on where the money is raised.
Each SPV will focus on specific youth-centric genres. For instance, SPV A could be focused on funding horror films, while B could be dedicated to investing in romantic movies.
The idea is to create economies of scale within each SPV, and minimise risk and maximise returns, like any institutional investment.
“We will back high-concept, theatrical-first films, which don’t have big stars and directors.” says Sidharth Jain, co-founder and partner, Filmoney Global.
The fund management firm is based in Dubai, but operationally active across New York and London. (A theatrical-first film is one that debuts exclusively in cinemas and becomes available on other platforms after a certain window of time.)
CineNow’s Approach to Film IP
Meanwhile, CineNow, which is a $150 million (Rs 1,350-odd crore/Rs 13.5 billion) fund registered in the British Virgin Islands, is positioning film intellectual property (IP) as an an alternative asset class.
Its chairman and managing director Rohit Dalmia says the list of studios and individual producers it will work with will be announced in July.
CineNow intends to fund more than 30 films over six years, with budgets ranging from Rs 3 crore to Rs 300 crore.
The fund has just roped in Siddharth Roy-Kapur, the former head of Disney India and managing director of Roy Kapur Films (Yeh Ballet, Matka King, Rocket Boys) as principal advisor.