Hedge Fund Elliott's Money Makes Film Co. 'Fully-Fledged Studio'

Mar 7 2011 | 10:53am ET

Paul Singer may not aspire to be a Hollywood mogul himself, but he's helping to create one.

Singer's hedge fund, Elliott Associates, has given more backing to film studio Relativity Media, which in turn has used the new investment to win a bank credit facility in excess of $200 million. The new financing has relativity, led by Ryan Kavanaugh, thinking big.

The new money and credit "allows us to be a competitive, full-fledged studio," Kavanaugh told Variety. "We have moved into the distribution business, doubled the size of our team, inked significant deals with Netflix, Technicolor and others. It has become a full-fledged studio—and the infusion of capital will allow us to compete with the major studios.

Elliott helped launch Relativity and in 2008, along with private equity firm Relativity Capital, putting up $1 billion to help Relativity co-finance most of Universal Pictures' movies in a deal that expires this year. Last year, Elliott and Relativity considered buying bankrupt studio Metro-Goldwyn-Mayer.

Relativity plans to make between nine and 10 films this year, buying another five or six to make a total of at least 15 films distributed per year. The studio is behind the new movie "Take Me Home Tonight," which was released Friday, and has Robert De Niro's "Limitless" coming out later this month.


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Future of Private Equity: New Opportunities, New Challenges

Feb 3 2017 | 6:41pm ET

The private equity industry’s astonishing rebound since the financial crisis has...

 

From the current issue of