FilmHedge Secures $50M Debt Facility to Finance Georgia Film/TV Productions
Fallbrook Capital has partnered with the GA based fin-tech company by providing a debt facility.
By: FilmHedge, LLC
FilmHedge, a Georgia based fin-tech company offering financial products for Film and TV producers, has secured a commitment to provide up to $50 million in debt financing from Fallbrook Film Finance to be used to cash flow Georgia tax credits for film and television productions.
Fallbrook Film Finance is a nationally recognized tax credit investment and brokerage company headquartered in Los Angeles. Specialties include institutional tax equity investment and structured debt products for tax incentive projects. Fallbrook has facilitated over $6 billion dollars of tax credit transactions over the past three decades and has been an industry leader in structuring domestic film and television tax credit investments.
FilmHedge's fin-tech marketplace product automates syndication of secured, short-term, low-hassle lending opportunities to Film & TV producers. A substantial number of FilmHedge applicants seek to leverage their federal or state tax credits as an assurance for financial groups like Fallbrook who can use FilmHedge to earn returns of 10%-30% on capital placed in the marketplace.
"We're excited to welcome the team at Fallbrook," Jon Gosier, CEO of FilmHedge, said. "We use software to make the flow of capital more efficient for the Film and TV productions we service."
By partnering with Fallbrook, FilmHedge can increase the amount of capital it can extend to productions specifically taking place in Georgia. While FilmHedge funds projects nationally and globally, Georgia is home to the highest number of film productions in the world, making deals targeting the region especially important to the entertainment industry.
During the 2021 fiscal year, the film and television industry set records with $4 billion in direct spending on productions in the state. This industry spending was the result of 366 productions filmed in the state -- represented by 21 feature films, 45 independent films, 222 television and episodic productions, 57 commercials, and 21 music videos.
"Georgia has led the industry in production-friendly policy that has brought blue chip talent and spending to the state. These policies also bring investment, this transaction being a great example," Gosier continued.
In addition to providing capital, Fallbrook joins FilmHedge to serve as the company's film tax credit administrator and will conduct back-office responsibilities and underwriting.
"We're proud to partner with FilmHedge to make production financing more accessible to the industry," says Will French, a tax credit finance pro who was brought in to lead Fallbrook's expansion in the film and television sector. "Our hallmarks are simplicity, accessibility and efficiency – always with the highest degree of professionalism and integrity. That's what sets Fallbrook apart from other tax credit lenders. We couldn't be more pleased to join the FilmHedge platform and team."
In Georgia, entertainment tax credits are coveted by TV and Film producers. The State's film, television and digital entertainment tax credit of 30% offers significant cost savings for those producing feature films, television series, music videos and commercials, as well as interactive games and animation.
Through the Entertainment Industry Investment Act, Georgia provides a 20% tax credit for companies that spend $500,000 or more on production and post-production in-state, either in a single production or across multiple projects. The state grants these productions an additional 10 percent tax credit if the finished project includes a promotional logo in the end credits.
For more information, please contact Jon Gosier (jon@filmhedge.com) or Will French (wfrench@fallbrookfinance.com).
