MediaInvest, a new E.U. equity tool managed by the European Investment Fund, has made its first four deals in Europe’s audiovisual and creative industries. The agreements, announced at the San Sebastian Film Festival, are worth a total of €68.25 million ($72.35 million) and are expected to leverage around €500 million ($530 million) of new financing for companies and projects in the sector.
MediaInvest aims to address the lack of access to finance faced by European audiovisual companies. By providing equity investment and debt financing, it aims to strengthen the financial capacities of these companies, allowing them to get better value for their intellectual property and accelerate their growth.
The first equity agreement was made with France’s Logical Content Ventures, part of Logical Pictures. The investment of up to €25 million ($26.5 million) from MediaInvest will allow Logical Content Ventures to raise up to €70 million ($74.2 million) in equity investment in European audiovisual production and distribution companies. Logical Content Ventures focuses on producing movies, TV series, and impact content that tackle women’s empowerment, diversity, and human rights.
In addition to the equity agreement with Logical Content Ventures, MediaInvest also signed three debt financing agreements. The first is with Spain’s Cersa, which provides financing for the audiovisual and cultural sectors. The second is with Crea, a Spanish company that provides financing solutions for the cultural and creative industries. The third is with Luxembourg-based The Archers, which specializes in investments in the audiovisual sector and finances the co-production of films and TV series.
The European Investment Fund conducts thorough due diligence on all companies receiving E.U. funding. This not only ensures the responsible use of public funds but also attracts private-sector third-party investment. According to Logical Pictures president Fréderic Fiore, the funding from MediaInvest can have a cascade effect, enticing other investors to participate.
The agreements made by MediaInvest represent the first step towards its ultimate goal of boosting investment in the audiovisual sector and encouraging the creation of audiovisual equity funds. With the support of MediaInvest, European audiovisual and creative companies have the opportunity to secure the financing they need to grow and expand their international presence.
Overall, MediaInvest’s investment in these first four deals signifies a significant injection of funds into Europe’s audiovisual and creative industries. As the tool continues to make more deals, it is expected to have a positive impact on the growth and development of the sector.