Most independent producers rely (of necessity) on a combination of collateral sources and other financing, including (but not limited to):
- Pre-sales to distributors in various territories
- Equity investment
- Tax-advantaged or protected equity
investment structures
- Tax credits or rebates
- Government or Regional subsidies,
or other direct incentives
"Gap Financing" typically refers to the uncovered amount of a motion picture's budget which remains once the above and/or other sources of financing have already been taken into account.
Gap financing is closely tied to the disposition of the distribution rights around the world and the gap financier will generally require that a motion picture project establish certain benchmark values by pre-selling certain rights in one or more major territories.
Once commercial values are established in this way, the "gap" which ultimately remains, is then secured by reference to the anticipated value of future sales.
Aramid Capital Partners sources projects on behalf of The Aramid Entertainment Fund that require Gap Financing of up to 30% of a films budget.
For further information on submitting projects please
contact us.