The volume of fund launches has fallen dramatically amid the turmoil of recent weeks but Aramid, which invests in the film and entertainment industry, says it has rarely seen a better moment to roll out its second fund.
“We are seeing a new level of opportunities for funding film producers, distributors and TV, film and music libraries,” said Sean Flanagan, co-founder and partner.
The fund, called Aramid II, hopes to raise about $250m (£159m, €197m) over the next 24 months and is targeting 12 to 15 per cent returns. It is aimed at institutional investors and wealthy individuals. “Investors may sit tight until the end of year until the dust settles but they can’t sit on cash for ever and will need to allocate,” said Mr Flanagan
He said he believed the entertainment industry provided a non-correlated asset in stressful economic conditions and could generate significant returns. Aramid’s first entertainment fund (Aramid I) launched in October 2006 and generated net returns of 21 per cent in its first 12 months and 9 per cent so far this year.
“This type of funding has proved extremely useful to get successful films off the ground,” said the UK Film Council.
The UKFC has invested public money in several films funded by Aramid including the recently released How to Lose Friends and Alienate People. Aramid has also funded W, directed and produced by Oliver Stone.
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