Hemisphere Capital Management Launches Tentpole Co-Financing Fund

Sony Pictures

First projects include "The Smurfs" and "Men in Black 3" at Sony and "The Adventures of Tintin: The Secret of the Unicorn" and "World War Z" at Paramount.

Hemisphere Capital Management has launched the Hemisphere Tentpole Co-Financing Fund, a revolving equity and debt fund created to co-finance 12-16 studio tentpoles over the next four to five years. 

The first batch of projects, totaling investments of more than $200 million, includes The Smurfs and Men in Black 3 at Sony and The Adventures of Tintin: The Secret of the Unicorn and World War Z at Paramount.

Toho-Towa Company and Kadokawa Shoten of Japan and Lotte Cinema of Korea are among the investors in Hemisphere Capital Management, which is run by partners Jean-Luc De Fanti, Jeff Sagansky and Eli Baker. JP Morgan Chase’s Entertainment Group is the fund’s debt financing partner.

“We have assembled a great team of financial and strategic partners who have also witnessed the on-going worldwide trend in the film business," said De Fanti. "This allowed us to invest in significant global tentpole pictures with the highest calibre of talent and filmmakers assembled at both Sony and Paramount."

Sony Motion Picture Group CFO and EVP Stefan Litt negotiated the deal for the studio, while Paramount execs Daniel Ferleger and Paul Neinstein negotiated on behalf of their studio. Schuyler Moore of Stroock, Stroock and Lavan repped Toho-Towa, Kadokawa Shoten and Lotte Cinema on the deals.