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The Catalyst Group

Introduction

The Catalyst Group (TCG) Entertainment is media debt financing company focused on opportunities comprised of global emerging film, television and media projects. We curate a diverse portfolio of projects that creates profitable and steady returns for investors with an equal focus on capital protection by providing securitized loans to an asset class that is not affected by normal market conditions. We utilize risk mitigation techniques that provide investor protection by financing collateralized debt and gap or mezzanine positions for film, television, and other media projects, while also occasionally securing net profit participation to enable investors to benefit from potentially extraordinary returns generated from TCG financed projects.

We are the media financing company that most of the studios, production companies, and independent producers seek out for funds for their submitted film packages, including a fully developed script, director, primary cast, production schedules, and budget, as well as a proposed finance plan. At TCG, our founding members have more than 25 years of combined experience in analyzing, reviewing, and structuring various types of finance plans that fit the needs of a particular project. We have a broad range of film financial products and support services to offer established and emerging film production companies, helping to assist both domestic and international filmmakers and producers in the global film markets.

TCG Experience

Deal Origination

Financial Structuring

Business and Legal Affairs Consulting

Film and Television Production Expertise

Within the new emerging digital entertainment market, TCG will not only provided media financing tools but also plan to partner with a distribution aggregator with experienced technology developers and data analysts to facilitate a streaming distribution platform for content creators backed by metrics.

TCG believe that current and anticipated market trends are ideal for the launch of a debt facility with industry veterans that have a strong background in finance, and production, and media technology. Our team has an excellent industry network of associates that have worked with major film studios, globally known talent and packaging agencies, and management companies.

In Theaters Now

The Last Victim (2022)

In this stylized neo-Western thriller, a group of modern-day outlaws and their terrifying leader are pursued by a local sheriff after committing a horrific crime in a desolate southwest town. When a professor and her husband cross paths with the criminals, everyone is drawn into a spiral of violence and retribution where morality becomes ambiguous, and survival is the only option.

Domestic Releases: May 13th, 2022 (Limited) by Decal
Video Release: May 13th, 2022 by Decal
Running Time: 103 minutes
Genre: Thriller/Suspense
Production Method: Live Action
Production/Financing Companies: Decal, Peach Partners, Slated, Concourse Media, Immortal Thoughts, SSS Entertainment, The Catalyst Group Entertainment, Sprockefeller Pictures

Watch Trailer Watch Trailer

Client Focus

Pre-Sale Distribution / Securing Minimum
Guarantees & License Fees

The process of creating a film can be long and arduous, but totally worth it to share your work with enthusiastic audiences. With a reputable sales agency, skilled producers can sell distribution rights piecemeal to various domestic and foreign territories before the project actually starts production, which is known as a “Pre-Sale” within the industry. The amount of the minimum guarantee or license fee is based on the strength of the script and the attached or “packaged” elements such as the director and actors. TCG will always discount the Pre-Sales collateral to provide a safety buffer.

Pre-Sales will yield a deposit payment of approximately 10–20% with the balance of the minimum guarantee or license fee due upon completion and delivery of the finished film. Producers can take these contractual commitments to TCG as collateral to obtain a production financing loan. Pre-Sale loan interest rates and return time are dependent on the size and complexity of the project, for which Pre-Sale collateral is the most secured and least risky collateral in a media project’s profile.

Tax Incentive Financing and Gap /
Mezzanine Contributions

Many countries and states provide film tax incentives from the government. In the United States, many state governments such as Georgia, Louisiana, New York and others have tax incentive programs for media projects that are a reliable form of collateral for financiers. The tax incentive loan will not be provided until an industry approved third party has analyzed the budget and submitted an estimated audit. Also, the producer must provide necessary evidence showing that the production is approved to qualify for the tax incentive. The amount of the tax incentive loan will be no more than 90% of the estimated tax incentive return provided by the auditor.

Moreover, gap financing is a type of mezzanine financing that is secured by unsold territories for a media project. This type of financing is recouped after the Pre-Sale loan. It is a riskier form of financing than Pre-Sales loan, however, depending on the evaluation of the overall risk profile from the project with the estimated time of recoupment being normally 12-18 months. TCG will consider the performance of Pre-Sales and the overall value of the package to determine the appropriate amount of gap financing for the project. With certain projects, any gap financing will require a net profit share that can potentially generate exponential returns if a film is a box office success.

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