Money wants film! Really? The stock market is volatile, the real estate market is overstimulated and tangible assets are at their highest level. The capital market is now looking for new investment opportunities. These rarely involve investments in a single film, but companies from the creative industry are increasingly being sought: established film productions, steadily growing service companies and intelligent tech tool developers. Here too, comprehensive sustainability is crucial - the keyword is ESG.
There is a well-known saying: "You can make a small fortune with film if you had a large one before." Due to the general economic conditions, the creative industry is once again a sought-after investment target. Investing in a single film as a financial investment is a common occurrence, but it is not the norm. Much more interesting for investors is a company that can show positive cash flow and growth potential in the long term. This is where production companies come into play that do not receive rights to the films they create because they primarily work as contract producers for broadcasters and streamers.
The key evaluation criteria are the individual opportunity-risk profile and the profit potential. A new level of evaluation is becoming increasingly established: comprehensive sustainability. This is about environmental protection, but by no means just about green shooting. Social sustainability is evaluated in terms of qualifications and pension provision, for example. Ultimately, however, all sustainability promises are worthless if there is no control system in the company to structurally ensure the management guidelines. A lack of active and production-ready risk management repeatedly prevents a positive investment decision at the last minute. This would be easy to implement and there is enough money in the market.
The term ESG is appearing more and more frequently. It stands for environmental, social and governance, three English terms that are intended to comprehensively guarantee sustainability requirements. The origins lie in the 17 UN sustainability goals , which have also been implemented in local legislation in Germany. ESG should not be missing from any strategy agenda and should be taken seriously. Banks are increasingly orienting themselves on corresponding key figures, and funding requires minimum standards. At the latest with professional financing partners, you will be confronted with ESG assessment procedures. The basic structures can be easily created and also implemented in a practical way in film production. Digital processes, such as the digital employment contract from adag , have a supportive effect.
Established standards serve as a reference for the evaluation. Green Motion from the Green Shooting working group is an essential aspect for resource-saving productions. Compliance with applicable collective agreements, the involvement of the broadcasting pension fund or qualification partnerships are good examples of social sustainability. We also offer corresponding offers via Ensider:Partner or ESG-Donation .
Even with interest rates slowly rising, there is still enough liquidity in the market. The risk profile of other asset classes has shifted, as can be clearly seen in real estate or the stock market. Gold , raw materials and real estate have risen sharply in price. Investments in the creative industries have remained relatively stable, with globally attractive market growth. This also contributes to entrepreneurs' own retirement provisions . Those who do their homework now and actively plan for their succession can benefit from this.
Growth financing, the purchase of other companies or investments in digitization measures can also be financed through equity from investors. In addition, numerous subsidies and intelligent forms of financing are available. International Film Partners is an experienced partner especially for investors and entrepreneurs in the creative industries and is also the perfect contact for non-binding preliminary discussions.
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