We seek investors/producers that have obtained 20% of their film’s budget, on which we provide access to the remaining 80% (private lender) through our commercial lender affiliates program at 2% over the libor rate. This ensures a seamless production which we are also capable of assisting with on certain approved projects. There has never been a better time to invest in the independent film sector. We can ensure some of the best writers/directors along with A-list acting talent and leading distributors. All operating services are handled through our partners at PricewaterhouseCoopers along with other qualified affiliate institutions.
Select investors can become a part of the process through the use of a variety of tax-efficient investment opportunities. Investor perks include 30% to 60% ROI, on-screen executive producer credit, visits to movie sets, and invites to the film premieres, red carpet events, etc.
Private Equity Investment
Private Equity is a direct investment into projects by an institution or individual. Galatia Films performs the due diligence on each of our projects to offer them as investment opportunities for private investors while also sourcing commercial opportunities in media investment for film funds. We are adept at negotiating and structuring such deals to ensure both our projects and investors benefit from the film’s commercial revenue. Through such investments we can both match and leverage numerous sources of soft money available to creative industry producers.
US State Tax Credits
Movie production incentives are tax benefits offered on a state-by-state basis throughout the United States to encourage in-state film production. The structure, type, and size of the incentives vary from state to state. Many include tax credits and exemptions, and other incentive packages including cash grants, no-fee locations, or other perks. Galatia Films understands such incentive programs intimately to ensure our films get the best deals available. Tax incentives range from 20% to 35% of the allowable film budget. We are very knowledgeable of the rather generous tax credits in Georgia and further understand how such incentives can be cash flowed.
GAP Investment
GAP investment is typically the last piece of finance into a project making up around 5-35% of the total budget. GAP investors will always sit in first position in the recoupment schedule and will lend against the pre-sales for a project. Galatia Films completes due diligence on each project we take on, to ensure pure investment opportunities for GAP financiers and source commercial opportunities in media investment. We are adept at negotiating and structuring such deals to make sure investors benefit from all aspects of GAP financing. We also have experience in providing ‘Supergap’ financing for the final 10-15% of the production budget.
While GAP investment comes with higher risks for investors, these can be mitigated through the involvement of our experienced advisors and potential returns can be extremely lucrative. Through our team, investors and producers have the ability to source GAP finance, allowing them to greenlight a greater number of projects.
Application Requirements:
- Business Plan
- 1M (held in escrow for film)
- Script
- Comps
- Line Budget
UK Investors Only: SEIS Investment includes 50% income tax relief to reduce the amount of the investor’s at risk capital, along with capital gains rollover and valuable tax timing advantages. Combined, there is 27.5% actual amount at risk. With CGT mitigation of 14% the total relief can be 86.5%. Profits on sales are Capital Gains Tax Free. Full inheritance tax relief is available after 2 years. Through EIS 70% of the project’s investment is underwritten by UK Creative Industry Tax Credits and/or pre-sale agreements. Capital loss relief of up to 45% of net investment after income tax relief of 30%, representing total tax reliefs of 61.5% of the original investment. Combined with the CGT deferral relief of 28% the total relief can be 89.5%.
Please contact us today for further information and to receive our financial term sheet. – Mac Ruiz mruiz@galatiafilms.com or contact@galatiafilms.com