Great Point Entertainment Income (FILM) announced its intention to launch an IPO on the specialist fund segment of the LSE, for a target issue of 200m ordinary shares at an initial issue price of £1.00 per ordinary share. The prospectus is expected to be published on or around 11 February 2021. FILM will provide project finance to content makers and commissioners in the global television and film production industry via senior loans secured against pre-sold intellectual property (IP) rights.
The company’s investment objective is to provide shareholders with dividend income and modest capital growth through exposure to media content finance. To achieve this, FILM will create a portfolio of senior loans, with counterparties including broadcasters like the BBC, ITV, Sky and Channel 4, as well as streaming platforms such as Netflix and Amazon Prime Video.
In the announcement, it is noted that “the company’s investment adviser, Great Point Investments, has a proven track record for funding high-quality productions which have completed and delivered on time and on budget. The Investment Adviser’s team has produced, financed and distributed £2 billion of content, with £488 million invested in content production since 2013. This comprises over 400 film and TV production credits and 180 projects financed since 2013.”
The investment adviser backs high-quality theatrical and television films, series, and mini-series, leveraging its close relationships with some of the best production companies in the UK, US, and abroad. Projects have featured on UK broadcast television, US cable networks, online streaming services, and in world-class film festivals including Sundance and the Berlinale.”
Investment opportunity – ‘targeting an 8% total annual return’
The announcement notes the following:
- “FILM presents an investment opportunity with a compelling return profile targeting a 6% dividend yield per annum. This is based on the investment adviser’s three-year internal rate of return (IRR) track record with an 8% target total return from a non-correlated asset class with strong growth prospects.
- The company will invest substantially all of the net proceeds of the Initial Issue in a portfolio of secured loans
- The directors believe that the net proceeds of the Initial Issue will be predominantly invested within nine months of first admission
- The indicative pipeline of over £330m of secured lending includes distribution rights pre-sold to names including Netflix, Lionsgate, BBC, ITV, Up TV, Hallmark, Discovery, Hulu and Apple
- FILM anticipates that its current strategy and the size of market will allow the fund to grow to £1bn over the medium term
- The company is operating in a robust, large and growing market with the landscape for film and television alone forecast to grow to over US$358bn by 2024″
Market opportunity – ‘global streaming revenue hit US$46.4bn in 2019 and is forecast to almost double to US$86.8bn by 2024’
- “FILM is operating in a robust, large and growing market with the landscape for film and television alone forecast to grow to over US$358bn by 2024
- Global streaming revenue hit US$46.4bn in 2019 and is forecast to almost double to US$86.8bn by 2024 at a 13.4% compound annual growth rate
- The investment adviser’s team has collectively produced, financed and distributed £2bn of content in their careers to date, with £488m invested in content production since 2013. This comprises over 400 film and TV production credits and 180 projects financed since 2013.
- The investment adviser’s projects have featured on UK broadcast television, US cable networks, online streaming services, and in world-class film festivals including Sundance and the Berlinale. Notable projects include: Doc Martin for ITV, Line of Duty for BBC, Brexit for Channel 4, Little Women for Lionsgate, Greenland (available on HBO Max in the United States in early 2021) and Small Axe for BBC and Amazon Prime Video”
Readers interested in the full briefing can access the intention to float RNS release by clicking here.
FILM: Great Point Entertainment – Intention to float