A new fund has been launched to enable individual investors to back West End musicals.

A new fund has been launched to enable individual investors to back West End musicals.

The Theatre Fund, which has been described as a ‘new alternative to the traditional theatre investment model’, launched this month. The fund’s manager is Prosper Capital and advisers are theatre producer Act Productions.

The Theatre Fund will enable individual investors the option to invest in West End theatre production through the government’s Enterprise Investment Scheme, which provides tax advantages for qualifying investors.

To attract investors, the fund will offer ‘enhanced percentage financial participation’, including a 70 per cent share of profits compared with the traditional 60 per cent, and participation in pre and post-recoupment producer royalties that are traditionally retained by the producer.

Involvement will also provide additional privileges to fund investors, including complimentary tickets to opening night or preview performances, invitations to meet cast, and access to VIP house seats across the West End.

The fund aims to benefit from the increasing popularity of West End theatrical productions. According to a statement from the firm that highlights statistics from the Society of London Theatres, attendance and revenues for the district have grown in the past seven years despite the economic backdrop. In 2009, revenues exceeded £500 million for the first time and attendances topped a record 14.26 million.

J. Alan Davis is the managing director at Act, which was founded in 1994. Current and past productions include Death and the Maiden, Yes, Prime Minister, Legally Blonde the Musical and Being Shakespeare.