Affluent Investors, VC, & Hedge Funds Get Behind Pre-IPO Technology & Film Investment Alternative

Aug. 12, 2010 - PRLog -- Noci Pictures Entertainment (http;//www.noci.com) is having a flood of inquiries from select global accredited ultra high net worth investors, sovereign wealth funds, Angel Investors, family offices, private banks, pensions, endowments, fund of funds, wealth & financial advisers, hedge funds, and other private equity investors looking to transition and participate in an exclusive opportunity in a market-neutral, non-correlated asset class which is immune to economic conditions, has built in guarantees for global distribution, integrates technology (3D production, digital distribution), and has a structure where Assets Under Management (AUM) would have a guaranteed ROI prior to revenues using U.S., Canadian, & international tax incentives, and, multi-tier exit strategies.

"There is a very privileged and sophisticated way of financially participating in a basket of commercial films, which unlike a mutual fund, REIT, hedge fund, oil & gas investment, or other correlated asset class, can in certain instances provide a 60-100% ROI prior to revenues that has full transparency and has zero quantitative, exotic, or other confusing financial models that have in the last few years proven to be more risk than reward", adds Yuri Rutman, the CEO of Noci.

And with the growing demand of 3D Cinema, the costs of theatrical distribution coming down, DVD markets healthy, global Video On Demand rising, mobile technology, utilizing specialized social media and word of mouth marketing, and long term library valuation and multi-tier ancillary revenues, Noci Pictures has developed a very innovative business model and financial product that is scalable to both smaller investors and large institutional capital.

Rutman further adds that  "Our concept and risk minimized alternative investment asset class structure is based on the following current marketplace trends and opportunities:


   * Honeywell Pension Fund, Elliot Associates, Dune Capital, Bank Of America, SilverHaze Partners, ABRY Partners, AIG Direct Investments, Bank of America Capital Investors, Columbia Capital, Falcon Investment Advisors and M/C Venture Partners are some of the institutions financing motion pictures.
   * Fred Smith, the CEO of Federal Express, Norman Waitt, the Co-Founder of Gateway Computers, Jeff Skoll Of Ebay, Emilio Diez Barroso of Televisa, Todd Wagner and Marc Cuban , Max Levchin and David Grodnick Of PAYPAL, Marc Turtletaub of The Money Store, Roger Marino Of EMC Corp, former Chicago bulls co-owner Jim Stern, Sidney Kimmel Of Jones Apparel Group, Minnesota Twins owner Bill Pohlad; Real Estate Developer Tom Rosenberg; and, financiers Robert Sturm, Sheikh Waleed Al Ibrahim, Zeid Masri, Michael Singer, Mark Esses, David Larcher, Michael Goguen, Richard Landry, Michael Reilly, Rafael Fogel, Philip Anschutz, and Michel Litvak are just a handful of high net worth investors actively involved with film finance.
   * There are various tradable state, federal, and international tax credit incentives that would offer a premium based on an equity position using IRS Section 181 and state tax credits and incentives that can offer returns of 60-100% of invested equity prior to revenues. For U.S. investors that qualify an example $1,000,000 investment would offer approximately a $400,000 reduction in federal tax liability and another $300,000 in cash via tax credits and rebates prior to revenues limiting the risk to 30%. If the investment if part of a larger film budget that gets 20-30% in pre-sales and gap finance, the risk exposure is virtually eliminated while the upside in revenues is limitless.
   * Every production of a motion picture or new media project can create anywhere from 20-100 jobs over a 2-3 month period which can boost local and national economic development.
   * The explosion of international DVD, pay-per-view, home video, cable, megaplex theaters, the future of multi-lingual Internet video on demand downloads, and cross-market digital distribution including low-cost theatrical digital projection, the movie industry is accelerating at an unprecedented growth rate.
   * The filmed and other entertainment sectors are constantly outperforming and beating analyst expectations with regards to growth, and are the only industries resistant to untimely global events and adverse economic conditions.
   * Movie Investor returns may be more favorable and more liquid than holding direct equity positions in most public entertainment and other public companies, real estate investments, and other alternative investments.
   * There is a huge demand, audience, and growing distribution structure for specialty films as exemplified by the success of  such films as "Twilight", "Paranormal Activity", “Brokeback Mountain”, “Sideways”, “Capote”, “Garden State”, "The Passion", “Napolean Dynamite”,  “Y Tu Mama Tambien”, “My Big Fat Greek Wedding”, “Memento”,  “Crash” ,  “Saw 1 &2”, Friday The 13th”, “Halloween”, “Texas Chain Saw Massacre”, “Hostel” and “WOLF CREEK”, which was made for $800,000, bought for nearly 4 million dollars prior to its release by Dimension, as well as “Hustle and Flow” which was made for $2 million dollars and bought for $16 million by Paramount Pictures.
   * Apart from large blockbusters such as "Transformers", "Pirates Of The Carribean", “King Kong”, “Harry Potter”, and other large scale studio films, the majority of studio-produced films are all financed by outside film funds such as Relativity or Legendary.
   * With the studios becoming more distribution companies, a small amount of independent distributors in the theatrical marketplace, the cost of film prints being reduced with digital prints, the Company is realizing an opportunity to get into U.S. theatrical distribution."

Noci Pictures Entertainment has structured a scalable and robust financial product and opportunity in film finance, production, distribution, and digital media.

Rutman continues that "Investors have the opportunity to invest in a diversified slate of feature films and

   * Benefit from one of the largest U.S. Federal Tax Reduction breaks ever put in place by the U.S. government
   * Receive a high minimum return greater than most financial products
   * Enjoy a high potential return based on single and multiple films' success
   * For online digital media, realize a large international advertising revenue
   * Promote your company/brand through various innovative PR and marketing opportunities
   * Be involved in stimulating the U.S. economy through job creation
   * Be part of a slate of films where your profit is based on 10,20,40 films where even 2 big breakout hits out of the slate will surpass your ROI expectations in addition to short term revenues generated by immediate cash flow from the monetization of international tax credits and rebates, distribution guarantees, and other risk minimization factors.
   * Understand that your upside in revenues will greatly be enhanced via a guaranteed U.S. theatrical distribution deal"

Noci Pictures Entertainment has a innovative way in custom scaling investments that has an absolute ROI prior to global revenues or profits using United States, Canadian, and international tax incentives and guarantees that hedge investments by offering tradable film tax credits or rebates that are monetized as cash. In certain instances, the cost of selling international distribution rights to a particular film may also cover a portion of an equity position prior to remainder Territories.