Independent film financing may be getting a boost from a new financial plan cooked up by former William Morris agent Gary Pearl and leading attorney Schuyler Moore.
The two have teamed up to create a new film financing fund that essentially commits money for prints and advertising at the early stage of the filmmaking process.
Doing that, Pearl and Moore devised, helps filmmakers to secure better casts and directors, it allows them to get premium prices for foreign presales and overall provides another financial partner for box office distributors to share the theatrical risk.
“The big risk for studios is the theatrical release,” explained Pearl. “This allows them to share the risk in p&a, up to a third of that cost.”
The new company, launched this week in time for the Toronto Festival, is called Extremal. They will be financing films up to $75 million each on the high end, with an anticipated p&a investment of $2 million to $10 million per film.
They hope to be invested in three films before the end of the year, and in 10-15 films in 2012.
“We believe our model and investment in films will help support and grow the independent film sector, and will reinforce film financiers, independent distributors, sales companies and filmmakers with a stronger position at the bargaining table during U.S. sales,” said Pearl.
“It will also increase take prices in the international sales arena, and enable interested foreign distributors and financiers to partner in the U.S. distribution process.”
Veteran film financiers Aleck Grishkevich (CEO and Co-Managing Partner) and Arthur De Vany are also principals in the company. Moore is a consultant to the company and will remain at his practice at Stroock and Stroock.
TheWrap talked to Pearl at the festival and brings you this video gem:
