American Capital goes Hollywood with $100m film vehicle(3)

The publicly listed alternative asset manager will break into the movie business with a $100 million commitment to Oceana Media Finance, which provides financing for independent films.

American Capital Strategies, the third largest publicly listed alternative asset manager behind Blackstone and Fortress, has invested $100 million in the creation of Oceana Media Finance, which will provide asset-backed secured financing for the production and marketing of independently produced features.

American Capital’s financial services division orchestrated the deal, with American Capital Equity Fund I, a vehicle managed by the Bethesda, MD-based firm, providing 30 percent of the total $100 million commitment.

Oceana’s product offering consists of four types of financing, all of which are secured by the rights and cash flows of the film, including: pre-production bridge loans, mezzanine gap loans, print and advertising (P&A) financing and, to a lesser extent, equity investments.

“Oceana’s founder and CEO, Myles Nestel, has extensive experience in the entertainment sector and is widely respected by leading industry participants. Nestel’s business relationships among major film industry participants will provide a steady stream of potential financing opportunities and his broad industry experience also ensures access to the highest quality independent film projects,” said Bob Grunewald, managing director, at the Financial Services Group of the American Capital.

The investment is the latest in a slew of transactions for the firm, which has invested directly and through its funds under management $9.5 billion in the last twelve months, $5.4 billion year to date and over $3.5 billion quarter to date.