Elliott-Backed Studio Gets Loan From Private Equity Billionaire

Dec 2 2011 | 8:52am ET

His long-sought-after divorce with Elliott Management dragging on, Relativity Media's Ryan Kavanaugh has found a new source of funds to continue making movies.

Relativity has secured a $200 million loan from private equity billionaire Ron Burkle. Burkle's money will allow Kavanaugh to continue paying for its productions as well as to cover the marketing campaign for its latest release, "Immortals."

In exchange, Burkle's Colbeck Capital Management will get almost 5% of the gross box office receipts both from "Immortals" and Relativity's upcoming "Mirror, Mirror," featuring Julia Roberts. According to Reuters, terms of the loan are not clear—sources say the interest rate could be as low as 8.5% or as high as 15%, and that advertising and production costs may or may not be considered in Colbeck's cut of the receipts.

A JPMorgan Chase-led consortium has been in talks to buy out Elliott's 49% stake in Relativity. Those talks, while reportedly still ongoing, have apparently stalled. Elliott has provided the bulk of Relativity's financing, in excess of $1 billion.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR