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Scope of Services
FBI
has the specialized knowledge to source and evaluate viable
film projects enabling a financial institution to focus
on its core expertise.
As a background to what FBI does, film
projects are not only profitable but, with proper risk
analysis, are comparable or lower than more traditional
asset classes.
A film project is collateralized by guaranteed pre-sales
contracts and distribution agreements and ultimately a
first priority security interest in the film itself.
Risk is mitigated by extensive due diligence on the project,
sales agents, distributors, and contracts. Risk
is further mitigated by performance bonds and completion
bonds that are in common use within the industry.
More than three-quarters of this $1 billion business
is focused on financing films with a budget of more than
$30 million, with another niche focusing on films with
budgets under $5 million. FBI focuses on a median
$15 million budget range, offering a full range of consulting,
advisory, financial and distribution services. FBI
matches these projects to its partners based on their
criteria and exposure limits.
FBI
provides financial institutions with the marketing/loan
sourcing; loan packaging and documentation; specialized
due diligence; and assists the institutions with monitoring
and collection services once the loan has been funded.
At the forefront of new developments in its area of operations,
FBI is presently in the process of introducing its own
FBIndexTM,
a first for the industry.
A proprietary statistical algorithm is used to assign
a risk rating to assess the probability of an investor/producer
getting his or her investment back in a reasonable period
of time, usually within four years. FBI takes specific elements of a film, and assigns these elements a risk profile that results in the FBIndexTMfor that project.
FBI has already successfully tested the process on several
hundred films already in release, and intends to use the
Index on all its future projects.
In sum, FBI offers its clients the confidence of thorough
assessment from script to screen, an end to end solution
for their project whether it is consulting, advising,
financing or distribution.
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