Sycamore Entertainment Offers an Alternative Investment Model

0
271
SHARE

This USA Herald news release is brought to you by Sycamore Entertainment 

Movies aren’t just about entertainment. They’re also big business and if they’re promoted successfully, they can make investors a lot of money. Sycamore Entertainment is a company that specializes in finding great movies that the major Hollywood studios have ignored. After obtaining the rights to a movie, they then get to work promoting it and making money for their investors. There are no guaranteed investments, but this is a business model with few negatives.

How it Works

Edward Sylvan and Terry Sylvan cofounded Sycamore in 2010. Edward is the company’s Chairman and CEO. He spent several years acquiring investment experience at firms such as Beco International, Marathon Brokerage, and Scotia McLeod. He also operates Silau II Holdings Ltd, his own successful consulting business.

With a wealth of investment experience between them, the Sylvan brothers created a new investment vehicle called Sycamore Entertainment. Their business is turning a movie that’s already been made into a success.

Most film investors get involved from the start. They provide the financing to make the movie from scratch. In an industry where only about 5% of movies ever make it to theaters, it can be risky getting involved in the movie business at this stage.

Sycamore Entertainment is not in the business of financing movie production. They provide investors with the opportunity to get involved after the movies already made. Major productions with the backing of Hollywood have distribution networks and advertising money to invest. Small and medium budget independent films don’t.  Sycamore steps in to provide that function for these smaller budget movies.

Great Independent and Foreign Films

Sylvan’s company purchases the North American rights to independent and foreign films. These films are already made, but lack the financing needed for print, distribution, and advertising. A group of investors backs their venture with the knowledge that there are billions in potential revenue in this segment of the industry. Sycamore Entertainment looks for films with A-list actors that have the best chance of success.

The best part for the investors is that they don’t have to wait long to earn their money back. In the movie industry, distributors are paid first and P&A investors next. Sycamore Entertainment takes control of both of these processes. That means they get paid before anyone else involved in the movie does. On average, an investor will recover their initial investment within 6 months.

Short Term Investment

Most investors would be happy to recover their initial investment within 6 months, but they want to make a good return on their money as well. Once that initial funding has been recovered, Sycamore Entertainment stands to make 5 to 10% on all additional revenue the film generates. With the potential for years of circulation on video on demand services that can mean a nice steady revenue stream.

No investment is guaranteed and the movie industry is no different, but even the less successful movies eventually break even. That makes the Sycamore model a low risk venture that’s attractive to investors looking for an alternative way to make money.

A Quick Return

There aren’t many recession proof industries, but the movie industry comes close. When consumers can’t afford to go out on a Saturday night they’ll turn to streaming services such as Hulu or Netflix. Every time one of these on demand companies picks one of Sycamore’s films up their investors make money.

The typical investment for distributing and advertising a movie is between $10 and $20 million. That’s a substantial amount, but it’s usually spread out over several investors. In return they get to make a profit in a relatively recession proof industry. There aren’t many other investments that offer the potential to earn 10% on all revenues after costs have been covered.

Priority Payments

Other low risk investments such as mutual funds may have similar returns, but you have to leave your money in the fund. Investors in a company like Sycamore get their initial investment back within 6 months and then they keep making money after that. It’s a unique investment model that makes it a good alternative to mutual funds, stocks, or real estate.

Edward Sylvan’s company has been around long enough to refine their business model. They now control distribution and promotion for the movies they back. This was the best way to make sure their investors were able to get their initial investment back quickly.

Some movies take years to make so investing from the start is a long-term commitment. Financing the distribution and advertising for a finished product will only ties up financing for a few months. That’s an attractive proposition for the potential investor. For an investor that’s interested in getting involved in the movie industry, Sycamore Entertainment offers one of the lowest risk and highest reward ways of doing it.