Capital Film Productions has introduced a new fund of US$548,266. The fund is dedicated to investing in various Nollywood films, with the founders having a history in film production, credited as executive producers for the Nollywood successes “Gangs of Lagos” and “Brotherhood.”
Over the last three years, Capital Films has successfully raised US$800,000 through two different funds, which have been instrumental in backing the production of seven movies.
The company has reported a 37% cumulative return from these investments, and it has attracted 37 investors in its previous funds, emphasizing its focus on retail investors. The minimum investment threshold for interested parties is US$10,965. For each film project, the company commits to investing a minimum of US$54,826 and can go up to a maximum of US$109,653.
Adim Isiakpona, the CEO of the company, said that their approach to selecting films for investment involves a thorough examination of the filmmaker’s history and business model. The budget for each movie varies depending on the specific project and its storyline.
They anticipate a 24-month average return cycle on their investments. Capital Film also provides advisory services to filmmakers and collaborates with them during the scripting and casting stages to guarantee the film’s marketability and a viable return. “We aim to comprehend the distribution model, production timeline, and expenses. We aim to maintain our investment at around 50% of the project’s cost, although it may range from 25% to even less than 25%. We refrain from exceeding the 50% to avoid overinvesting in any single project,” stated Isiakpo.
Nollywood is currently experiencing a trajectory towards global recognition, with international streaming giants like Netflix and Amazon Prime endorsing and licensing new films. Capital Films’ launch coincides with a growing trend where tech-focused professionals are increasingly involved in financing or even producing Nollywood films.
Filmmakers, including external investors, can bring fresh perspectives and catalyze change in an industry just starting to establish itself within the global economy. “As our firm launches, we are closing our third fund, which will finance six movies in 2024,” Isiakpona shared. “We anticipate this fund to grow to $50 million. CFP represents a dream realized for us. It began as a humble idea with ‘Our First Act,’ where we raised funds from our finances to support film projects. This evolved into a ‘Second Act,’ where we managed Liquidity Provider’s funds. Through these experiences, we have witnessed firsthand how access to adequate funding and support can elevate individual film productions and potentially the entire industry.”
