Kreis Consulting is promoting the Atlantic Media Production EIS, an enterprise investment scheme that invests in the production and distribution of films and television programmes.
The company intends to raise up to £5m and will take a portfolio approach to investments. It will typically invest in 15 per cent of the overall budget of each production in return for a share of profits, copyright, producer fees and exploitation rights. Productions will only be considered if they have already secured most of their funding. The total value of the portfolio of productions is likely to be between £30m and £40m and the company plans to pay dividends of 3p per share in the first year, rising to a 5p target by 2009.
Atlantic's managing director, Alan Harris, is experienced in film finance and was previously financial director at Grosvenor Park Media. He has also worked for Barclays International Funds and Merrill Lynch.
Harris and the rest of Atlantic's board will invest only in productions of well-known works such as book adaptations, or familiar subjects such as period dramas and family films. Examples of initial productions are an adaptation of Lady Chatterley's Lover and A Bear Named Winnie, a story which inspired AA Milne's Winnie the Pooh.
Atlantic will use industry contacts to find the right productions and will have direct control of scripts, director, production team, cast and budget. The productions will need to have commercial appeal and viable financial structures.
This EIS may benefit from recent changes to film partnerships which make them less attractive to investors. However,, this is still a speculative and high-risk area despite the opportunities through cinema, satellite and cable channels, video and DVD released.
Although the board anticipates an exit after five years through an Aim flotation this is uncertain and it may be difficult for investors to realise their investment.