03.03.08
$10 Million Investment by Structured Capital Group in Lumiere Film
New York based Structured Capital Group partnered for a successful 10 million investment in the Brazil based Lumiere Film Distribution Company. As part of this successful investment, SCGI become shareholders in Lumiere which is the biggest film distribution company in Brazil. The following press release was distributed detailing the investment as well as the involvement of Infinity FCS in the project and further information about Lumiere.
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Variety Weekly: International
Lumiere Relights Business
By Marcelo Cajueiro
RIO DE JANEIRO: Brazil’s Lumiere has resumed operations as both a distrib and producer, with new partners and a $10 million slate deal.
The company, which has been inactive for the last two years, was once Brazil’s No. 1 indie distrib, and theatrically released some of the country’s most important local pics, including “Central Station” and “City of God.”
Lumiere (which isn’t related to the former U.S. production shingle) will resume distribution in January with the release of Palme d’Or winner “4 Months, 3 Weeks and 2 Days.” Lumiere’s founder and CEO, Marc Beauchamps, bought Brazilian rights at Cannes before the pic received the prize.
The company is set to announce the first of the six to eight features it will co-produce, spread between projects from Brazil, other Latin American countries and other regions. Lumiere will distribute the pics in Brazil and other Latin American countries.
Mumbai-based investment fund Infinity India Advisor and NYC-based investment advisory and equity participation firm SCGI Financial Partners, both of which became Lumiere shareholders, will make the $10 million investment. Other new shareholders of Lumiere are Joshua Skurla, who conducted the negotiations with the investors, and Christian de Castro, formerly chief financial officer of international sales agent Vereda Filmes.
“Lumiere will be a large player in Brazil and other Latin American countries. The company will help streamline the Brazilian market, as we will use not only local incentives, but also private financial mechanisms common in Europe and the United States,” Beauchamps tells Variety.
In fact, virtually all Brazilian pics are funded with government incentives. Local distribs, including U.S. studio branches, also access incentives to co-produce and gain distribution rights to local pics.
Founded in 1989 as Initial Brasil, Lumiere grew in the late 1990s, thanks to an output deal with Miramax. The company also co-produced local pics with strong B.O. performance and festival play. But in 2003, Beauchamps took a leave of absence for health reasons.
Next, Beauchamps and company partner Bruno Wainer got involved in a shareholders’ feud. In 2005, Wainer founded his own indie distrib, Downtown Filmes, and Lumiere ceased to operate. This May, the partners negotiated an agreement, and Beauchamps is now ready to bring Lumiere back to its former role as an influential distributor.
For more information regarding Structured Capital Group contact Basem Zakariya or Michael Clarner at 212-935-3041 or 230 Park Avenue, Suite 810, New York, NY 10169.
Structured Capital Group ~ Innovative Film Financing
Structured Capital Group Inc. is an investment advisory and equity participation firm that specializes in creative financial engineering techniques to raise capital for its clients. SCGI’s worldwide industry activities are focused in real estate, motion picture, manufacturing, technology, energy, service, distribution, among many others.
SCGI’s innovative financing involves structural funds, risk syndication, creative financing and traditional banking and insurance elements that are successfully implemented on each project undertaken.
Our film financing program represents debt and equity elements arranged in a risk free environment through a special purpose vehicle pledged as collateral for a bank credit facility. This will include Domestic and Foreign markets, tax credits and rebates, along with gap and equity commitments which are then monetized and backed by letters of credit or bankable guarantees.
We look at advanced projects from experienced producers with significant attachments (talent, director etc.) and a quality commercial script. We prefer to be involved in film projects geared towards family carrying an MPAA rating of no more than PG-13.
We require a minimum of 15% of the budget to be covered by the borrower in cash collateral or equivalent guarantee in the form of a letter of credit. The investors can expect a significant return depending on their specific role in the transaction. Ultimately, our goal is to reduce the risk exposure with the production and filming of the picture in a tax beneficial state or province. The risk is essentially controlled and the upside can be virtually unlimited, depending on the quality of the film. The risk is spread among all the deal participants and secured by sales, deferred sales, tax benefits, excess risk coverage, leading to significant cost reduction.We plan to keep revenues from Domestic and approximately 50% of revenues from foreign territories to apply as a risk reduction to the investors.
Through alliances and ventures, we are currently involved in various levels of production and distribution and are exploring others with quality groups and organizations to further our capacity and make an indelible mark in the film industry.
For information regarding the film financing program of Structured Capital Group or any other investment opportunity contact Basem Zakariya or Michael Clarner at 212-935-3041 or 230 Park Avenue, Suite 810, New York, NY 10169
