GSFM partners with Australian Entertainment Partners to launch new Australian film and television fund

GSFM has partnered with Australian Entertainment Partners to launch the AEP Screen Fund.

The Fund will invest in film and television projects made in Australia, and is structured so that it has no material exposure to box office or other audience related factors. Producers, studios and streamers will be supported through the financing of these productions and having access to industry insider oversight.

AEP was established in 2022 and comprises a management team with over 100 years of production, management and finance experience in the global screen industry. AEP is based in Melbourne and has a representative office in Los Angeles, in the United States.

GSFM Screen Investments Pty Ltd will be the fund’s trustee and GSFM will also be responsible for the distribution and back office administration of the fund.

GSFM CEO, Damien McIntyre, says the AEP Screen Fund provides access to an attractive, alternative asset class while also supporting the Australian film and television industry.

“GSFM’s goal is to partner with high calibre investment managers to deliver differentiated, quality investment capabilities.  We actively seek out innovative and diverse investment strategies to offer Australian investors.

“The Fund will provide long term financing for the Australian screen industry on a low-risk basis for investors in the fund. This is because the investment criteria for the Fund to finance a project requires the costs of the vast majority of projects to be fully covered by studio or streamer contracts and government incentives prior to the commencement of production.

“With the launch of this Fund, GSFM is not only bringing a compelling investment opportunity to the market but is also creating opportunities for Australians in the screen industry and industries that support it.

“AEP’s founders – Greg Basser, Bob Osher and David Burdge – have over 100 years combined entertainment industry experience of producing, managing and financing film and TV productions in the global screen industry and, in particular Hollywood. Between them they have produced or financed over 400 projects in excess of US$30 billion, and have produced or financed films with over 150 Academy Award nominations and 30 Oscar wins,” says Mr McIntyre.

AEP co-founder, managing director and executive producer, Greg Basser, says he was impressed with GSFM’s reach in the Australian market, and by its distribution capabilities.

“With the support of GSFM we are able to offer a screen financing fund unlike any other in the market.

“AEP’s business plan is principally to work with streamers, studios, distributors and producers (both Australian and international) to bring and to undertake the production of film and television in Australia.

“A principal goal of the fund is to provide long term financing for the Australian screen industry on a low-risk, financing basis for investors in the Fund.

“The production cost of the vast majority of projects will be covered by contracts and government rebates and incentives concurrent with the commencement of production.

“The Fund will offer significant value to producers, studios and streamers – maximising Australian rebates and incentives, fully financing the cost of production and bringing oversight to the productions from experienced and respected industry insiders.

“The Fund will not only be a solid funding source for Australian projects, but will also attract international production to Australia thereby creating long term jobs, providing significant sustainable economic activity and contributing to GDP, helping to retain industry production levels post pandemic,” says Mr Basser.

The Fund will raise up to A$100 million of equity to be coupled with a bank facility of up to A$500 million arranged and led by the leading financial institutions in the global screen industry.

AEP Screen Fund will be a seven-year fund (five years with a two-year wind down) capped at producing 40 original productions and increasing to 55 total projects including sequels and continuing series.

Over the five years of the Fund’s investment term, the fund is forecast to produce film and television content in excess of A$1.7 billion, the vast majority which will be spent in Australia.

Mr Basser says the timing is right to launch the fund in Australia.

“Globally, streaming subscribers have surpassed 1.8 billion subscribers worldwide.  Streaming services content spend has grown to over US$220 billion per annum to support subscriber growth and demand for new content. Meanwhile, content produced in Australia almost doubled from A$1.04 billion in 2019/20 to A$2.29 billion in 2021/22.

“Australian cast, crew and creative talent are highly regarded by the global film and TV community and continue to be in high demand. As well, Australian facilities, locations, and post-production/SFX are world-class and actively engaged by producers from all over the world.”

He adds: “Australia is perceived as being a “safe” place for film and TV production, combined with the pandemic and instability in Eastern Europe – a traditional destination for production – it is seen as a desirable location and lower risk political environment.

“Finally, Australian government rebates and production incentives lead the world. This was reinforced by the Federal Government’s increase of the Location Offset from 16.5 per cent to 30 per cent announced in last week’s budget.

“The Government is to be applauded for the fillip this will give to the Australian screen industry and, beyond that, to economic activity and jobs across the wider community.

“An Australia-based fund is in a better position to maximise these than a foreign producer or studio could access directly,” he concludes.