New consulting firm gives film financing a boost

Private equity firm consultant and filmmaker Yuri Rutman has launched a film investment consulting division of his production company, Noci Pictures.

Chicago and L.A.-based Noci Pictures Entertainment, LLC advises producers and investors on federal, state and international tax incentives, talent attachments, and co-production in Europe, Russia, Singapore and China.

“There are a lot of filmmakers, especially in Chicago and the Midwest, who have investors, but are not educated on how to properly structure risk-minimized financing,” said Rutman.

“These structures might include using government incentives, presales and gap financing that can give investors 60-100% return on their investment prior to distribution.”

Rutman, the company’s CEO, cites favorable film investment terms under Regulation D, Rule 504-506 PPM, Section 181, and Section 199 of the Federal Tax Code, in combination with state incentives, like Illinois’ 30% Film Tax Credit.

Rutman pitches film investment, leveraged with such incentives and presales, as a safer alternative to real estate and hedge fund investment, based on the guaranteed pre-distribution return.

He has begun broadening his focus, from the highest net worth investors, to include smaller investors as well.

Noci is also shopping a $300 million investment fund to international equity and pension funds in hopes of developing a six-to-12 film slate and launching their own distribution arm.

Rutman, a consultant for 72 Equity, produced the 2003 drug addict drama, “Mr. Id,” starring Ami Dolenz and Steve Parlavecchio.