The fund’s approach will be to back a distributor’s entire portfolio of films, as well as financing the acquisition of film rights and libraries.

The focus of the fund is on independent distributors in Europe. It will help finance the distribution and marketing of films, but will not invest in development or production, which tend to carry a higher risk for investors.

The fund will target institutional and private investors, and has a minimum investment of €1 million. The targeted IRR is 25 per cent, with a recapitalisation planned for the end of year two. Funds will be raised via loan notes and called only when required over a planned two-year investment period.

Duncan Reid, commercial director at Ingenious, says: ‘Film distribution is one of the most profitable yet underinvested parts of the global film industry. The new fund will provide much needed capital for independent distributors looking to build larger film portfolios and improve their bargaining power with broadcasters and DVD retailers.’