Newport Beach, Calif.-based Palatine Asset Management is going Hollywood with its latest hedge fund. The firm has launched Capitoline Global Media Fund, a media debt fund, for which it expects to raise $250 million.

The fund will offer collateralized loans to film studios and media companies, and will be secured by existing film rights, music rights and libraries, as well as other media assets. Investments may include bridge loans and medium-term loans for completion of ongoing film, music and other media businesses. All loans for in-progress productions will be covered by completion bonds to provide risk-mitigated and non-correlated returns in the fund.

“The credit crisis has had a major impact on the media community,” said Brian Gilmore, Palatine’s founder. “The current market conditions severely hamper the completion of new projects and are causing companies to monetize assets at very attractive pricing for investment. Our fund will help to re-establish the liquidity that other funds and investment banks have left behind.”