Global European Cinema Fund (GECF)

The fund finances projects that already have partial pre-sales, committed distributors, or government-backed rebates. This means revenue is partly secured before production is completed, reducing reliance on box-office results. The fund focuses on slate financing, which spreads risk across multiple films rather than a single hit-or-miss project.

Portugal offers one of Europe’s most competitive cash rebate systems, reimbursing up to 30% of eligible production expenses. This rebate functions as a risk buffer and is paid directly by the government after audit. It effectively reduces the fund’s exposure and increases the predictability of returns.

The fund invests primarily in production SPVs connected to each project, rather than owning studios or long-term infrastructure. This structure ensures each project remains legally and financially isolated, which protects investor capital if one project encounters delays or setbacks.

The fund commonly enters projects as a senior secured lender or structured co-investor. This gives it priority in cash flow repayment from rebates, pre-sales, and distribution contracts. Only after the fund recovers capital and returns do producers and junior equity partners receive distributions.

Most financed projects include a completion bond issued by a specialist insurer. This ensures the film is delivered even if production runs over budget. If delays affect cash flows, the bond provider steps in to cover overruns or complete the production.

The selection is driven by distribution traction and content demand trends, not geography. The fund prioritises markets where streaming platforms and distributors have a strong appetite for European content, typically the US, Europe, and parts of Latin America, but only as revenue markets, not investment destinations.

While the portfolio includes dramas, thrillers, mysteries, and biopics, the fund prioritises projects with strong international sales potential. Genres are selected based on distribution forecasts, casting viability, and adaptability to global streaming platforms, rather than artistic preference.

Capital is deployed over a multi-year investment period, usually the first 2–3 years. Projects are added gradually to the slate, allowing the manager to adjust to changing market conditions and streaming trends. This staggered approach helps avoid cash drag and maintains deal quality.

Film revenues are driven by consumption habits rather than interest rates or stock movements. Even in downturns, demand for affordable entertainment often rises. This makes media financing a useful diversification tool for investors who are heavily weighted in real estate or equities.

Investors typically receive periodic reports summarising portfolio status, rebate recovery, and distribution progress. Individual film performances may be summarised in aggregate to protect commercial confidentiality. These updates follow CMVM reporting standards and are issued by the fund administrator or manager.

Once the slate has generated its final revenues, the manager liquidates remaining rights and closes all project SPVs. Cash distributions are then made to investors according to the fund’s waterfall. After final accounting and CMVM formalities, the fund is dissolved and all units are retired.

Management Fee: 2.5%. Performance Fee: 20%. Subscription Fee: Not disclosed.