Fund in Focus – Hindsight Media

Enterprise Investment Partners

Background

Hindsight Media EIS Fund

Hindsight is an integrated media company, founded in 2009, that focuses on film and television production and financing, with offices in the UK and US. The principals of Hindsight have over 10 years of media finance experience and have collectively raised over $500m for 50 film and television projects on both sides of the Atlantic. The team have access to the top end of independent entertainment markets in the UK, EU and US, working with producers such as Scott Free, Anonymous Content, Playground and Imaginarium.

The Opportunity

The UK Entertainment and Media market was worth c. £59 billion in 2015 and is expected to grow at 3% per annum. UK Box Office receipts in 2015 were £1.24 billion, up 17% on those of 2014. International sales of UK TV programmes were estimated at £1.2 billion in 2015. The UK is the sixth largest market for video games in the world, with revenue forecast to grow to £4.9 billion by 2020.

Source: Hindsight Media July 2017

Hindsight Media EIS presents an opportunity to:

invest is a diversified EIS portfolio across film, television and video games production companies
benefit from an experienced media adviser with a media track record and access to the highest calibre producers
target capital preservation through EIS tax reliefs, UK TV, Film and Video Games tax reliefs, and pre-sales
Target medium case return of £1.20 per £1 invested, an IRR of 18% (after EIS tax relief)

Track record

Over the past 5 years, Hindsight has realised £31.8 million from funding of £27.7 million spread across 22 Media Projects, representing an IRR of 34% with an average holding period of 8 months. Of these, 8 were EIS Media Projects, which realised £7.6 million from funding of £6.4 million, representing an IRR of 10%.

Past EIS Projects

 WOLF HALL

WOLF HALL

Equity investment

10% net profits in perpetuity

Multiple Golden Globe and BAFTA winning drama

Funds Raised £2,700,000

Funds Returned to date £2,000,000 (still in recoupment)

Expected Funds Returned £4,000,000

Exit timeframe 3 years

CHEF

CHEF

Equity investment

15% premium and share net profits in perpetuity

Highest Grossing independent film at US box office in 2014

Funds Raised £1,450,000

Funds Returned to date £1,860,000 (still in recoupment)

Exit timeframe 3 years

DARK MATTER

DARK MATTER

Equity investment

Projected IRR of over 13% with 5% share of net profits in perpetuity

Broadcast on SyFy channel in over 200 countries worldwide

Funds Raised £2,500,000

Funds Returned to date £2,000,000 (still in recoupment)

Expected Funds Returned £3,250,000

Exit timeframe 3 years

Target Returns

  Low Case Medium Case High Case
Investment (100,000) (100,000) (100,000)
Tax Relief 30,000 30,000 30,000
Net Investment (70,000) (70,000) (70,000)
Exit 104,745 120,371 144,895
Tax Free Gain 34,745 50,371 74,895
Tax Free IRR 13% 18% 25%

Assumptions

Low Case

Production credit of 20% on first project plus 9% fee, pre-sales of 50% plus 9% fee, plus a pre-production return of 7% from remaining investment. Proceeds re-invested in second project, with the same performance.

Medium Case

Production credit of 20% on first project plus 9% fee, pre-sales of 50% plus 9% fee, plus a 32% return from remaining investment. Proceeds re-invested in second project with same performance.

High Case

Production credit of 20% on first project plus 9% fee, presales of 50% plus 9% fee, plus a 32% return from remaining investment. Proceeds re-invested in second project with same performance, and finally re-invested into a third project with same performance.

The Manager – Enterprise Investment Partners

Enterprise Investment Partners LLP is a specialist smallcap investment boutique established five years ago, whose activities include corporate finance, fund management and the design and promotion of tax-efficient investment products. Enterprise has considerable experience of EIS and has specific expertise in the leisure, media, commercial property and renewable energy sectors. The principals together have raised in excess of £100m under the EIS, VCT, and other tax efficient structures over the last 5 years.

The Hindsight Media Fund is available via Kuber Ventures platform through the Media Asset Focused Portfolio or as a self select strategy.
If you are interested in further information about Hindsight Media EIS Fund, please contact us on info@kuber.uk.com or +44 (0) 20 7952 6685