FUNDS INVESTMENT MODEL

FUNDS INVESTMENT MODEL

The Fund’s is structured to finance a slate of four feature films with up to 100% equity investment on select projects. Productions will be paced strategically at two films per year, ensuring consistent activity and a steady pipeline of potential returns. The aggregate slate budget is projected at approximately $30million.

By design, the slate approach offers built-in diversification-spreading risk across multiple films, genres, and release windows rather than relying on the performance of a single project. At the same time, the Fund maximizes capital efficiency by leveraging its equity contributions with a mix of co-financing partnerships, debt financing, and production incentives. This disciplined structure significantly reduces downside exposures while preserving meaningful upside potential.

In addition, by maintaining flexibility between full equity financing and co-financed productions, the Fund is positioned to capture outsized returns when opportunities align while mitigating risk through shared investment models. Coupled with the global demand for high-quality moderately budgeted content, this strategy ensures the Fund is well- positioned to deliver both creative impact and competitive financial performance.

REVENUES & RECOUPMENT

Revenues generated from each film serve as the Funds primary income stream. Net revenues are distributed in direct proportion to the Funds equity investment relative to the total production cost of each project. This ensures that the Fund participates fully in the cash flow generated after repayment of production, marketing, and other related expenses. Profitability is tied to the overall performance of each film across theatrical release and ancillary revenue streams, including streaming, international sales, merchandise and licensing.

To further enhance investor protection and accelerate recoupment, MMG will strategically leverage multiple tax incentives-such as location-based credits-and take advantage of immediate depreciation of invested capital under (“Section 181”) where applicable. These measures provide additional layers of return potential, mitigate downside risk, and maximize the Fund’s opportunity for early recovery of principal investment.

state of industry

STATE OF THE INDUSTRY

NON-CORRELATED ASSET CLASS

Box office revenues continue to grow even during market drops and slowdowns and are not correlated with stocks, which minimizes risk against the volatility of the capital market.

NON-CORRELATED ASSET CLASS

With the number of movie screens and online distribution platforms increasing, demand for new, quality content also increases.  As the major studios are focusing on making fewer, more expensive “tent-pole” films which regularly exceed $100 million in costs, and with the explosion of original series on streaming platforms like Netflix, Hulu and the like, a supply gap emerges in the mid-budget film space. Studios, independent distributorsand online platforms alike look to the acquisition of independent films to fill this gap.

MULTIPLE INCOME STREAMS

🎬 Theatrical

Revenues received from ticket sales. Exhibitor splits ticket sales, usually with the larger share.

💻 Home Entertainment
Revenues received through digital sales including Pay-Per-View, digital sales (iTunes, Amazon, etc.), streaming services (Netflix, Hulu, Amazon Prime, etc.), as well as sales of physical media such as Blu-ray and DVD.
📺 TV / Broadcast

Revenues received through licensing with premium cable channels (HBO, Showtime, etc.), cable networks, ad-based TV networks (NBC, CBS, ABC, etc.), and ultimately to syndication stations.

Marketplace Disruption
Digital entertainment companies are reshaping the marketplace by securing rights across multiple categories. In many cases, they pay higher license fees that can match or exceed traditional revenue streams.
Sequential Distribution

Films are released in stages or “windows,” each generating additional income. The timing and performance of each stage directly influence overall revenue.

THE PRODUCTION PROCESS

Development

Assess project compatibility
Acquire source material
Script writing/rewriting
Packaging (director, stars, etc.)
Budgeting & production strategy

Pre-Production

Shooting schedule & budget refinement
Hire key personnel
Location scouting
Set & wardrobe design/build
Casting & planning

Principal Photography

On-set/location filming
VFX teams begin work
Coordination based on complexity & schedule

Post-Production

Picture editing
Sound editing & mixing
Visual effects (VFX)
Color correction
Mastering & deliverables

Marketplace Disruption
Digital entertainment companies are reshaping the marketplace by securing rights across multiple categories. In many cases, they pay higher license fees that can match or exceed traditional revenue streams.
Individual Film Revenues and Streams
Print & advertising distribution fees, recoupment of advances, residuals, investment recoupment, and profit splits. Revenues are collected and distributed according to agreements.
Between the revenues coming from distribution and the payout of profits, various costs must be paid. To maximize profits, it is imperative to have these costs under control. The fund utilizes its experience to maintain restraint on each line of expense, improving profitability.
Film Revenue Income Windows
Film revenue windows span across the entire life of the film. Each release stage contributes to overall revenue, from theatrical release through final library sales.

COMPARABLE INDEPENDENT FILMS

Three Billboards Outside Ebbing, Missouri
Three Billboards Outside Ebbing, Missouri
Budget $25 Million
Domestic Total Gross:$54,513,740
Foreign Total Gross: $104,696,424
Total : $159, 210,164
Moonlight

Moonlight
Budget $1.5 Million
Domestic Total Gross:$27,854,932
Foreign Total Gross: $37,191,755
Total : $65,046,687

Get Out

Get Out
Budget $4.5 Million
Domestic Total Gross:$176,040,665
Foreign Total Gross: $79,366,998
Total : $255, 407,663

Manchester by the Sea

Manchester by the Sea
Budget : $8.5 Million
Domestic Total Gross : $47,695,371
Foreign Total Gross: $79,366,998
Total : $255, 407,663

MY BIG FAT GREEK WEDDING

MY BIG FAT GREEK WEDDING
Budget $5M
Domestic $241,438,208
Foreign $ 127,305,836
Total $374,890,034

JUNO

JUNO
Budget $7.5M
Domestic $143,495,265
Foreign $88,877,416
Total $232,373,066