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Noci Media launches media and entertainment PE investment opportunity for UHNWIs

A California film, television, and digital entertainment company has opened a limited window for ultra high net worth investors looking for a private alternative investment.

Noci Media is targeting self made entrepreneurs, mass affluent investors, and multi generational family offices for a new private equity opportunity that offers a low risk high return, along with various hedging strategies.
 
“The US Department of Commerce recently released a report summarising Price Waterhouse’s Analysis that the global media & entertainment industry is almost at USD2 Trillion,” says Noci’s Managing Partner, Yuri Rutman.
 
“Many investment opportunities are available online in cryptocurrency, tech startups, real estate, and traditional stocks, bonds, futures, but there is a limited amount of accessibility to quality film & television opportunities.”
 
While a few independent films raise nominal amounts on places like Kickstarter or IndieGogo, only a small percentage of them achieve the kind of financial success in the real world.
 
At the same time, many investors who invest into independent films are promised the glory only to see their investment end up on someone’s living room shelf with no distribution.
 
“The one thing that investors don’t understand about investing in media/entertainment, is that it is no different than investing in technology companies, real estate, medical, oil & gas, startups online, etc,” adds Rutman. “In fact, its much safer with a more transparent business model and long term revenue streams”.
 
Also, a film’s budget is exponential to whether it will show a high ROI or fade into obscurity.
 
“A USD30,000 microbudget films, USD250,000 comedies, or USD1,000,000 action films will have a limited shelf life in the international marketplace” Rutman says. “The best budget for maximising a film’s profitability is either a USD2.5 million all equity investment, or, a USD10 million film.”
 
At USD2.5 million, the budget is high enough to be able to find major Hollywood actors who are also stars globally at salaries ranging from SAG scale to USD75,000, which creates a comfortable cushion for producing a high quality film in a high tax credit or tax rebate state or country. Such a budget allows an investor to have an ROI of USD500,000 – USD700,000 6 weeks after production. With 50 countries to sell a film to, plus a deal with Netflix, Amazon, a studio, or a mini major distributor, investors should normally see a multiple of 3x – 5x their investment amount, including such sweeteners as an Executive Producer credit, invitation to film festivals, etc.
 
A USD10 million film would be financed with 25 per cent equity, 20 per cent-25 per cent in tax credits and rebates upfront vs. the back end, and 50 per cent-75 per cent in pre-selling the film’s distribution rights to 3-5 countries. If the pre-sales exceed minimum guarantees, an investor will see his entire investment back before a movie or television series is even produced.
 
“Every day, investors who are coming out of an exit or sale of their company, or, are heading a family office are actively investing in Hollywood and the global media economy,” saysRutman stresses. “Some are huge hits, a lot of misses, and we feel our opportunity has a premium business model on ROI and long term profit potential.”

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