Palatine Asset Management of Newport Beach has announced the launch of a media debt fund, Capitoline Global Media Fund, which it expects to raise USD250m.
Palatine Asset Management of Newport Beach has announced the launch of a media debt fund, Capitoline Global Media Fund, which it expects to raise USD250m.
The fund will build on the strategy employed by Brian Gilmore, Palatine founder and chief executive, in originating nearly USD400m of similar financings.
The fund will offer collateralized loans to movie studios and media companies and will be secured by existing film and music rights and libraries as well as other media assets.
Investments may include short term (or bridge) loans and medium-term loans for completion of ongoing film, music and other media business.
In certain opportunities, the fund will have the option to own certain rights if they meet the investment guidelines of the fund. 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,’ says Gilmore. ‘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.’
The fund will be managed by Palatine Asset Management, founded by Gilmore to focus on managing institutional investments into the media business.
