Michael Bassick is hardly the only local businessman with the idea of bringing
Hollywood filmmaking to Massachusetts. Except the former investment banker wants
to bring not only the glittering star-studded shoots to the city, but also the behind-
the-scenes funding that drives the industry. “There’s a sexiness to this that
investors respond to differently,” said Bassick, 39.
In this economy — with film financing especially difficult — it may not be an easy
sell. Bassick is attempting to raise a $100 million fund through his independent
feature film investment firm MJB Ventures in Boston. The plan is to invest in films
that will be shot in Boston, taking advantage of local talent — and the film tax
credit.
Bassick wants to raise $50 million in equity and $50 million in debt. That debt will
be secured mainly by the worldwide rights of the films, in the form of contracts that
would allow the purchase of certain rights upon a film’s completion, according to
Bassick. The life cycle of the fund will be about six years, investing in about 20 films
with an average budget of $10 million.
MJB Ventures’ special sauce is that the firm leverages the Massachusetts’ state tax
credit (which amounts to 25 cents for every dollar spent in the state) by monetizing
those credits before film production starts in order to help finance part of film.
“It’s hard to pick hits,” Bassick said. “So the idea behind the fund is to create a
portfolio, like a venture capitalist would. Some singles and doubles and hopefully
one or two will be home runs.”
To ensure his chances are good of picking a box office winner, Bassick says he has a
quantitative process through which he selects movie projects. The process includes
taking a careful look at the script, actors and directors, the genre of the film and the
potential value of the film rights.
Bassick is already established as a film financier and producer. In 2006 he started
Markedia Worldwide LLC, a film investment and branded entertainment company,
which has already committed $10 million across seven film projects since 2006.
Those films include the most recent, “Valediction” starring Eliza Dushku, a thriller
that was filmed in locations across Boston last month, including Post Office Square
and the InterContinental Hotel. Valediction is Bassick’s first role as a producer.
There’s money to be made if Bassick taps a winner. In 2008, domestic box office
numbers hit $9.8 billion, up 1.7 percent over 2007, marking the highest total in
history, according to the Motion Picture Association of America.
Although indie films make far less than studio blockbusters, independent films can
score big. Indie flick “Juno,” which opened in 2007, grossed $112 million in 2008,
according to the MPAA.
Indeed, many in Hollywood were shocked when Sony pulled the plug days before
“Moneyball” was set to start filming last month, despite the fact that Brad Pitt was
set to star. According to media reports, the film’s $57 million price tag was too much
for an obscure movie.
Bassick says he has the financial chops to make his fund work. Back in 2003, Bassick
left his job as a senior banker at FleetBoston to launch Markedia. Then, when the
state’s film tax credit began in 2006, Bassick saw a fresh opportunity for investing in
independent films.
Given that Massachusetts’ film industry is just now coming into its own, Bassick
could be striking at just the right time, said Eran Lobel, president of Boston-based
Element Productions Inc., who is on the board of the Massachusetts Production
Coalition.
“To get a fund here is exactly what (the local industry) needs,” Lobel said.
“I think it’s great that somebody like Michael is stepping up to try to bring a financial
metrics to this industry which is growing here,” said John MacNeil, owner of Waltham-
based Moody Street Pictures and one of the founding members of the coalition.
Hollywood filmmaking to Massachusetts. Except the former investment banker wants
to bring not only the glittering star-studded shoots to the city, but also the behind-
the-scenes funding that drives the industry. “There’s a sexiness to this that
investors respond to differently,” said Bassick, 39.
In this economy — with film financing especially difficult — it may not be an easy
sell. Bassick is attempting to raise a $100 million fund through his independent
feature film investment firm MJB Ventures in Boston. The plan is to invest in films
that will be shot in Boston, taking advantage of local talent — and the film tax
credit.
Bassick wants to raise $50 million in equity and $50 million in debt. That debt will
be secured mainly by the worldwide rights of the films, in the form of contracts that
would allow the purchase of certain rights upon a film’s completion, according to
Bassick. The life cycle of the fund will be about six years, investing in about 20 films
with an average budget of $10 million.
MJB Ventures’ special sauce is that the firm leverages the Massachusetts’ state tax
credit (which amounts to 25 cents for every dollar spent in the state) by monetizing
those credits before film production starts in order to help finance part of film.
“It’s hard to pick hits,” Bassick said. “So the idea behind the fund is to create a
portfolio, like a venture capitalist would. Some singles and doubles and hopefully
one or two will be home runs.”
To ensure his chances are good of picking a box office winner, Bassick says he has a
quantitative process through which he selects movie projects. The process includes
taking a careful look at the script, actors and directors, the genre of the film and the
potential value of the film rights.
Bassick is already established as a film financier and producer. In 2006 he started
Markedia Worldwide LLC, a film investment and branded entertainment company,
which has already committed $10 million across seven film projects since 2006.
Those films include the most recent, “Valediction” starring Eliza Dushku, a thriller
that was filmed in locations across Boston last month, including Post Office Square
and the InterContinental Hotel. Valediction is Bassick’s first role as a producer.
There’s money to be made if Bassick taps a winner. In 2008, domestic box office
numbers hit $9.8 billion, up 1.7 percent over 2007, marking the highest total in
history, according to the Motion Picture Association of America.
Although indie films make far less than studio blockbusters, independent films can
score big. Indie flick “Juno,” which opened in 2007, grossed $112 million in 2008,
according to the MPAA.
Indeed, many in Hollywood were shocked when Sony pulled the plug days before
“Moneyball” was set to start filming last month, despite the fact that Brad Pitt was
set to star. According to media reports, the film’s $57 million price tag was too much
for an obscure movie.
Bassick says he has the financial chops to make his fund work. Back in 2003, Bassick
left his job as a senior banker at FleetBoston to launch Markedia. Then, when the
state’s film tax credit began in 2006, Bassick saw a fresh opportunity for investing in
independent films.
Given that Massachusetts’ film industry is just now coming into its own, Bassick
could be striking at just the right time, said Eran Lobel, president of Boston-based
Element Productions Inc., who is on the board of the Massachusetts Production
Coalition.
“To get a fund here is exactly what (the local industry) needs,” Lobel said.
“I think it’s great that somebody like Michael is stepping up to try to bring a financial
metrics to this industry which is growing here,” said John MacNeil, owner of Waltham-
based Moody Street Pictures and one of the founding members of the coalition.
 |  |  |
Investor wants Mass. role in film funding
by Roland Hansen
by Roland Hansen
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