Our extensive capital markets experience in complex debt and equity interest structuring and support execution services has given us access to a wide range of capital raising resource alternatives.
Through our deep joint venture relationships we enjoy direct access to public capital markets and access to institutional and retail investor clients.
In addition we have access to leading debt providers and private equity investors through both private and public market sourcing.
The capital raising added value we bring over other direct or intermediary options is our intimate current market knowledge of pricing and term negotiation strategy. We offer access to wide range of capital market source providers with no bias or fixed allegiances to compromise a projects financial vision. Our ability to seamlessly attune a projects capital market approach by appropriate calibration of the financial application process is a critical deal asset.
Access to capital and pricing of capital are of function of risk from perceived collateral value. Our ability to raise capital and to concomitantly reduce capital cost by appropriate risk mitigation strategies coupled with appropriate collateral valuation can significantly benefit any project finance proposal.
For the last decade we have been at forefront in entertainment industry project finance risk mitigation strategy development. Key to our leading insights on risk mitigation has been our ability to build deep risk perception tools. Tools that define transactional and economic risk profiles specifically targeting niche areas of entertainment industry project finance sector.
The IPO thinking approach is a critical insight we bring to entertainment project financing. Entertainment project financing normatively involves high value capital investments with long tail exploitation recoupment profiles in relation to prospective returns. We bring the degree of corporate finance focus and due diligence capability that one would expect to see in an initial public offering prospectus to every advisory we undertake. By bringing this level of transactional quality to our advisory business we ease the capital raising path and at the same time reduce capital market provider deal risks, thereby reducing the overall cost of capital to a project finance plan.
The Investment Grade standard capital asset pricing model application we have specifically developed for the entertainment industry is another unique strategic value we offer clients. Our internal investment standard for overall entertainment project finance risk sees us developing finance tools that will protect project capital from loss of investment capital principal. We where possible seek to return principal investment with interest returns equal to those enjoyed by investment grade bond investors. Critical to our value proposition is a focus on assuring capital market providers that their principal risk is underwritten to an investment grade standard. Our dedication to this thinking matures in result into easier access to capital and lower cost of capital outcomes.
PRIVATE EQUITY AND DEBT CREATION
We are direct private equity investors who take positions in entertainment industry projects where we deem such investments appropriate.
Our investment criteria are strictly related to investing in risk mitigated interests meeting our internal investment grade standards.
We are long-term private equity investors who do not seek short fuse exit strategies in conflict with other capital provider interests. Our diverse business model ensures conflict of interest containment is achieved by appropriate deal segmentation of our interests from those of other project finance participants.
We as a private equity group act when needed and where we deem appropriate, as a take-out exit strategy liquidity solution partner for outside investor interests.
We finance transaction costs related to entertainment project capital raisings and the attendant capital market support service expenses where we deem such risks appropriate. Our investment covers in-house and out-of-pocket costs of capital raisings and is recovered on finance close. We provide transactional development capital only where “no shopping covenants” and “termination turn around fee” protections exist to underwrite our initial investment risk. Given we view each project financing as being akin to a full public offering we are careful to ensure that extensive time and expense commitment we make is adequately protected. Normatively such time and expenses are in other industry sectors paid for at inception by the commissioning party. Our business model allows us to finance such costs but only where we are an active principal and protected by the deal terms.
Off-balance Sheet Finance
True off balance sheet finance solutions to entertainment project finance goals, require careful attention to the detail of transactional form backed up the economic substance required by such an approach.
Compliance with related Securities Law, Tax Law and Accounting Standards and reporting requirements demand a skilled and informed approach to be effective. We have developed structured finance solutions that provide legally secure off balance sheet transactional status. The ability to create tax effective solutions that provide access to pure off balance sheet capital without “on balance sheet” risk is an area of expertise we specialize in. We maintain that the lower cost of capital pricing models and higher transactional benefits flow from this approach and often make for better deal outcomes than many “on balance sheet” approaches.
Tax Based Structured Finance
We also specialize in the development of tax based structured finance solutions to entertainment project finance risk exposure.
Our ability to lower after tax capital investment risk exposures while maximizing net after tax returns on capital invested is a valued structured finance tool.
In the entertainment project finance space we possess highly developed structure finance tools and deep skill sets related to the deployment of such finance solutions.
We offer entertainment project finance participants wide ranging liquidity solution alternatives to ensure viable exit strategies for those demanding risk adverse investments.
DEBT PLACEMENT, STRUCTURING AND MANAGEMENT
CV Business Trust has unparalleled access to leading debt and project incentives finance providers via a wide range of private and public market sources. Our depth of transactional experience has provided us with direct links to capital provider’s specifically motivated toward entertainment project finance around the world. Direct and speedy access to capital providers is a significant edge we offer.
For projects that may require a combination of debt finance for their potential tax incentives/rebates, market place pre-sales and “gap”, CV is able to advise and procure the appropriate lending options. Transactions involving these multiple debt components can be complex and CV’s insight and experience and relationships provide a critical deal closing edge in terms of speed and certainty.
CV Business Trust and its Principals have successfully structured business plans to claim project tax incentive/rebates/credit payouts in full for many feature films, (mix of US studio, domestic and international co-productions), TV series and mini-series, with combined qualifying spends of over US$2billion.
Our services are required by commercial marketplace lenders and completion guarantors, with the real value add being our understanding of the nuances involved in the various definitions and unique risk mitigation strategies for producers/financiers to maximize their claims. To this end we have developed an in-house model that is at the cutting edge of international tax and capital market compliance standards.
Collateral Asset Support Take Out-CAST
Collateral Asset Support Take out strategy aka CAST is a program we have developed to assist entertainment project finance plans short on “inside the deal collateral” to close finance. Often due to deep discount approaches taken to inside of the deal collateral valuations in relation to the risk profile of entertainment projects a collateral gap appears, one that needs to be closed for a project to find financing. CAST is a program that where appropriate economic metrics exist can close collateral gaps in project finance plans.