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

Mar 7 2011 | 11:53am 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

Q&A: Portfolio Advisors' Brian Murphy On The Advantages of A Private Markets Platform

Jan 2 2018 | 11:05am ET

Most private markets firms reference their platforms as a source of competitive...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: The Top Hedge Fund Industry Trends for 2018

Jan 2 2018 | 12:22pm ET

Each year, Don Steinbrugge’s Agecroft Partners compiles the insights gained...

 

FINalternatives Trending

From the current issue of