Deals We’ve Structured

Real projects. Real capital stacks. Real results. Each case study demonstrates how institutional-grade deal structuring transforms film financing.

Case Study 1 — Crime Drama Pre-Production
Genre
Crime Drama
Budget Range
$3M – $5M
State
Multi-State
Tax Credit
State + Federal Stack
25%
25%
50%
Investor Equity
State Tax Credits
Senior Lending
Investor Structure
Leveraged Purchase — Section 168(k)
Cash Contribution
$625K
Projected Tax Benefit
~$1.25M (~2x cash)
Ongoing Returns
Negotiated net profit participation

How the Deal Was Structured

This crime drama was built from distribution backwards. International presales and domestic minimum guarantees were secured on the strength of recognizable lead talent, providing the collateral foundation for the senior lending position that anchors the capital stack.

State tax credits cover a second tranche of the budget, and the investor’s equity exposure is limited to a fraction of the total production cost — while their tax benefit under the Section 168(k) leveraged purchase structure projects to approximately 2x their cash contribution.

Downside protection is built into every layer: a sales guarantee backs the promissory note, the tax credit is a state-issued obligation, and the senior lending is collateralized by presales. The investor also receives a negotiated share of net profits — genuine upside beyond the tax benefit. Award-nominated cast anchors the presale valuations and de-risks the distribution strategy.

Case Study 2 — Action / Thriller Development
Genre
Action / Thriller
Budget Range
$3M – $5M
State
Illinois
Tax Credit
35–55% (IL SB 1911)
20%
35%
45%
Investor Equity
State Tax Credits (IL, Stacked)
Senior Lending
Investor Structure
Leveraged Purchase — Section 168(k)
IL Credit Cap
No Cap
IL Base Credit
35% (up to 55% with stacked bonuses)
Ongoing Returns
Negotiated net profit participation

The Illinois Advantage

Illinois Senate Bill 1911, signed in December 2025, created one of the most aggressive film tax incentive programs in the country. The base 35% credit can be stacked with regional bonuses, diversity incentives, and other qualifiers to reach up to 55% of qualified expenditures — with no annual cap on the program.

For this action/thriller, the enhanced Illinois credit fundamentally reshapes the capital stack. The combined lending position — collateralized by both the state tax credit and international presales — provides a higher coverage ratio than standard structures. This creates a combined coupon that significantly reduces the investor’s effective exposure.

Act One Media is headquartered in Chicago, providing direct access to Illinois production infrastructure and incentive administration. The deal leverages the Section 168(k) leveraged purchase model, where the investor acquires the film copyright at a valuation-based price and deducts the full purchase amount (cash plus seller-financed recourse note) under 100% bonus depreciation. The no-cap feature of the Illinois program makes it particularly attractive for scaling to larger budgets without the allocation risk that plagues capped state programs.

Case Study 3 — Horror Micro-Budget Model
Genre
Horror
Budget Range
Under $1M
State
Varies
Min. Investment
Lower Threshold
30%
25%
45%
Investor Equity
State Tax Credits
Senior Lending / Presales
Investor Structure
Leveraged Purchase — Section 168(k)
Self-Bonded
Yes (no completion bond)
Distribution
Multi-platform (TVOD, SVOD)
Ongoing Returns
Negotiated net profit participation

Institutional-Grade Architecture at Micro-Budget Scale

The common misconception is that structured film finance only works for productions with budgets above $2 million. This case study demonstrates that the same institutional-grade deal architecture — leveraged purchase under Section 168(k), state tax credit collateralization, presale-backed lending — can be applied at the sub-$1M level.

Horror is an ideal genre for this model. The category has consistent international demand regardless of cast recognition, built-in audiences across streaming platforms, and historically favorable ROI ratios at lower budget levels. Distribution agreements for genre content can be secured earlier in the production cycle, strengthening the presale collateral position.

At this budget level, the self-bonding model eliminates the $150K+ completion bond cost that would otherwise consume a disproportionate share of the budget. Act One Media’s proprietary approach — salary tranching, post-production holdbacks, padded contingency budgets, and keyman insurance — provides the operational safeguards that protect investor capital without the overhead. The lower minimum investment threshold makes this an accessible entry point for investors exploring film as an alternative asset class for the first time.

Important Disclosure: Case study details presented on this page are illustrative and based on representative deal structures. Specific project details, financial projections, and returns are subject to individual offering documents and may vary based on market conditions, production variables, and applicable tax law. Past deal structures do not guarantee future results. All investments involve risk, including the potential loss of principal. Prospective investors should consult their own tax, legal, and financial advisors before making any investment decisions. This information does not constitute an offer to sell or a solicitation of an offer to buy any security.

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