Fast Forward: Indie Film House Moves Up Launch

IndieVest, a film financier, distributor and production company in Los Angeles, will launch its first film fund early next year. The firm originally planned to roll it out in 2010 (totalalternatives.com, Aug. 22), but due to increased interest from investors will bring the date forward, said CEO Wade Bradley. The not-yet-named fund is expected to launch with at least $100 million.

Films are effectively recession-proof, making them an extremely attractive investment in turbulent markets, Bradley pointed out. “People need to enjoy some form of escape, some form of entertainment,” he said.

The film industry has not been affected by the growing financial crisis—this was its best-grossing year ever, bringing in $9.7 billion in box office sales through Nov. 30, and Bradley expects it to exceed the $10 billion mark in 2009.

The fund will invest only in films that either cost less than $10 million or were made outside of the studio system. “Historically, [indie films] provide the highest percentage rate of return through the entire industry,” Bradley said.

The fund will raise money from investors to produce the films, make prints and finance advertising. IndieVest guarantees that each film will be shown in at least 1,500 theaters in the U.S. Investors receive a 15% preference payment, then 50% of net profits; the actors, filmmakers and producers receive 40% and IndieVest earns 10%.

Its current project, Saint John of Las Vegas starring Steve Buscemi and Sarah Silverman, will be released in early 2009. Its next movie, a comedy/horror film, will begin filming in March.