Private Equity Investment In Indian Movies!

The term non-correlated asset category covers an entire range of prospective investments, including venture capital, private equity and alternate investment strategies.

Private equity business has drastically changed in India over a decade, attracting foreign investors to make major investments in movies and real estate funds in India. Investors from Wall Street to Silicon Valley to the Middle East to Russia have now been parking their money in Indian movie business expecting to earn huge sums of money.

If you are planning to invest in PE fund in India that too in the entertainment business then it makes much more sense to invest in movie studios then films directly as it much more scalable approach for major earnings and also offers clear exit strategies. With more than ten movies releasing every single week, Indian studios offer a wide variety of choice to investors. Many of them eventually blow up on the box office but one needs only one blockbuster to hit the jackpot.       

In today's economics of crashing public equity markets and defaulting hedge funds, investing in movie slates is definitely a hazy option but worth considering. As a non-correlated asset category, movies and picture finance have outperformed every non-related asset course including the ever reliable real estate business.

Investing directly into movies can be a perilious move as it requires one to handle multiple things at the same time. Things like scouting the right talent, managing production costs, and finding right distributors is a cumbersome task for a person who has never invested in movies before. The returns are never guaranteed as the taste of the audiences is fickle.
  
Due diligence is critical before investing in any project. Gauge the producer’s experience and reputation in the movie business before putting in your money. Also, consider the movies potential market and how much it can earn during the first few weeks of its release.