IPR.VC: Targeting Untapped Content Investments
- IPR.VC is generating returns for its investors through investing in filmed entertainment – TV, film and interactive content – a sector with little exposure by VC funds due to its specialized nature.
- Media and entertainment content is an asset class which is growing, lucrative and non-correlated
- The effects of the corona crisis on our funds’ field of activity, the TV and film sector, are positive due to the growth of streaming services and the growing demand for content.
- IPR.VC’s investment instrumentation provides fast capital rotation, downside protection and low overall costs for its funds. The strategy enables mezzanine risk level at VC class returns.
- Fund I is fully invested. The Fund II with €64,55m capital commitments invests in Film and TV content slates by partnering with leading sales and distribution companies.
- Media and entertainment industry is not correlated to typical macro-economic drivers or to stock exchange fluctuations.
- Media content is the growth business that IPR.VC is focusing on and it is this focus that brings IPR.VC funds proprietary deal flow, which technology funds do not cover.
The media content industry is booming due to the emergence of Internet distribution and changing consumer habits. The changes open up new opportunities in monetising media content assets, especially in filmed entertainment – movies and TV. In filmed entertainment, high-quality dramatic content that appeals to large fan bases is key for profitable business. Globally, filmed entertainment is a $500bn bullish market that is further strengthened by new players such as Netflix, Amazon, Disney+ and Apple, which are competing to add the attractive premier products to their services.
It’s a recession proof industry: people will always consume media and entertainment content. Historically entertainment asset performance has no relationship to the macro-economic trends and is not affected by stock exchange fluctuations. During economic downturns, people often cancel their holidays in the sun and go to see a film instead.
It’s a unique asset class for investors because media and entertainment content is non-correlated with the general economic trends. On the other hand, individual products have simultaneously high risk and volatility and therefore high profit expectations.
IPR.VC enables access for institutional investors the best TV and Film productions and the growth of the business area and benefit from IPR.VC’s know-how in managing the high volatility and difficult predictability of entertainment assets.
IPR.VC’s investment instrumentation and agreements mitigate any unrewarded risks, such as production and producer-related risks. IPR.VC utilises warranty-like instruments which decrease volatility and protect the downside.
IPR.VC has built a high-quality deal flow by partnering with leading sales and distribution companies globally. IPR.VC has an international experienced team with connections to all of the key players in the industry.
IPR.VC’s investing instrumentation brings fast capital rotation and a high IRR. Investments are primarily debt-based instruments that incorporate the potential for unlimited returns in successful cases. The fund receives returns from the sales revenues of financed TV series and films, which allows earlier capital returns compared with regular PE funds. In the model, the costs of investment execution and exits are also clearly lower than in regular PE funds.
The Fund follows Invest Europe’s recommendations for Governing and Reporting Principles. Investments are reported at fair value according to IPEV (Fund I) or Invest Europe (Fund II) Valuation Guidelines. Reporting to investors follows Invest Europe’s professional standards. Fund I and II investors are all Finnish companies or institutions.
IPR.VC Management is established in 2014 and owned by its key employees.