Relativity, Elliott Hammer Out Movie Deal

Feb 29 2008 | 10:41am ET

A private equity firm and hedge fund will be seeing stars, and lots of them, under a movie co-financing deal.

Relativity Capital and Elliott Associates have agreed to provide at least $1 billion to co-finance no fewer than 75% of Universal Pictures’ films over the next four years.

Under the deal between the firms' investment entity, Relativity Media, and Universal, Relativity Media will share in the profits of roughly 45 films through 2011, while Universal will be able to exclude up to two films a year for budget purposes. Relativity can reject up to three films per year.

“Over the last few years, we have considered many slate financing deals. These deals have nearly always paired a strong and profitable studio with a poor structure, or a weak and unprofitable studio with a good structure. This is the first deal we’ve seen that matches a top-tier studio with a structure that properly aligns the interests of all parties," said Jesse Cohn of Elliott Associates.

"Universal's track record and focus on profitability are what motivated us to form this partnership, and their willingness to structure a fair and reasonable transaction speaks volumes about their commitment to a lasting relationship. This is exactly the deal we have been waiting for.”


In Depth

Q&A: Filippo Pignatti Morano On The Ultimate Alternative Investment...Classic Cars

Jan 29 2015 | 12:37pm ET

In 2011, Filippo Pignatti Morano launched a fund to invest in classic cars. FINalternatives...

Lifestyle

Looking For A Hedge Fund Manager? Try Davos

Jan 28 2015 | 8:48am ET

Davos, Switzerland seems to have become the hedge fund capital of the world—at...

Guest Contributor

Five Tips For Successfully Marketing Your Hedge Fund

Jan 30 2015 | 9:14am ET

When it comes to the hedge fund industry, the notion of “build it and it will...

 

Editor's Note