Recipient Requirements:​

 

Recipients must follow the same guidelines as for the Lending and Mezzanine Funds.

 

Investment in workshops, enhancements, and development productions will be viable. A development or financing fee may be rolled into the equity value for calculating profit should the event be very early or high risk.

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Terms of Investment:​

 

Assessments of lendable value will follow the same process as for the Mezzanine Fund.​

 

Investment will be conditional on the expected value of the investment exceeding a target annualised return of 15%. The expected value assessment shall consider the probabilities and net income of scenarios from the worst likely outcome through to best reasonable outcome that will account for long run net income, such as from additional productions and licensing. Comparable show data will be used to determine the possible outcomes and their probabilities. The Recipient will be required to answer questions that inform this assessment, with the rights available for the property being critical to evaluating future income.​

 

Investment under this fund will be high-risk, meaning first money in and last money out, but shall retain a share of all profits proportionate to other equity holders. There shall be no limit to profits receivable.​

 

The Fund will not take more than 50% of the available equity investment in a single production without Board approval to ensure that the Producer retains significant interest in the production’s financial success. At the outset, the maximum equity investment available will be £350,000.​

 

Producers may take a royalty, profit percentage, and/or torch-bearer points to be agreed upon with the Fund in advance of any investment agreement. This may not be altered after the investment has been made.​

 

Other investors may have priority on a portion of profit subject to prior agreement.​

 

It is understood by Lender and Recipient that there is a significant chance of investment value being wiped out.​

 

Holding of shares in production SPVs is preferred but not essential.