IIFF/SF Film Financing Workshop with Legendary Film Financier Lew Horwitz –
"Financing Your Film in the Real World"
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*** Don't miss our latest Film Financing Workshop or Townhall Meeting near you! ***

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Let film financing legend Lew Horwitz teach you how to finance a film the way he financed hundreds.

The Bay Area chapter of the Institute for International Film Financing (IIFF) continues its popular education & networking events at the junction of film & finance with another one-of-a-kind Film Financing Workshop for Northern California's community of filmmakers, entrepreneurs and financiers. IIFF's friends at Academy of Art University (AAU) are graciously making their facilities in downtown San Francisco available for our half-day clinic.

This intensive, hands-on seminar marks the première of the third installment in IIFF's acclaimed series of in-depth Workshops. It builds upon the exceptional success of the first Film Financing Workshop with IFP founder Sandra Schulberg (Jan. '08 in LA, Feb. '08 in SF & Feb. '08 in LA) and the second Film Financing Workshop with venture capitalist Dr. Frank Greene (Mar. '08 in SF & Mar. '08 in LA), as well as the continuing popularity of IIFF's monthly Townhall Meetings that were originally launched in the SF Bay Area during the spring of 2005. Our goal for this and future gatherings is not only to provide unbiased insight & education about the business of film but also to foster & inform productive relationships between attending professionals. The seminar features a highly topical program taught by a world-class expert instructor with extensive practical experience in film finance.

Of the three approaches to funding independent films, bank financing is arguably the most important. Whether a studio or investors finance a film, bank financing will undoubtedly come into play as well. This Workshop covers the significance and many details of bank financing. In learning what lenders require and why, filmmakers will be better equipped to help arrange effective financing for their films.

The business of lending money for the production of independent feature motion pictures is constantly changing. In the past few years those changes have caused the filmmaker to change his or her way of thinking, to become more internationally and financially astute. Today, it is more important than ever to learn "how production deals get done", just what is necessary before the filmmaker can finally feel confident that the money is in the bank and he or she can start shooting.

Prior to 1995, most loans made to independent filmmakers were secured with presales only and on occasion utilized some investor funds or co-productions, but that was the exception rather than the norm. The business was smaller and it was simpler. In 1995, "gap" financing was developed, lending against the value of unsold rights. Times were changing and many films did not have the 100% coverage in presales as before 1995 thereby creating a shortfall (the "gap") that bankers were now lending against. This was the beginning of a period of changes that has not stopped as of this day.

Because of gap financing, too many films were funded; banks became more restrictive and filmmakers were forced to look for additional ways to raise funds. Foreign tax incentives, government subsidies, and equity investors now became far more important and were utilized more. Today, more than 85% of film loans are made up of three components: presales, always the governing force; gap, being a secondary but important method; and third, the use of various forms of equity. This three-tier method of providing finance for independent films is the driving force behind today's seminar.

Banks do not look to the success of a film to retire their loan; they must look to their collateral — collateral in the form of distribution contracts. Sales agents, the ladies and gentleman who obtain these presales are an important component to the lending process, important to bankers and film entrepreneurs alike. Without completion bonds, banks would not be able to lend and filmmakers would have no safety factor in their productions.

It is absolutely necessary for today's filmmaker to not only be aware of the above but equally important, to be aware of the alternative equity sources to supplement presales and the allowable gap that the banker will lend against. Today's film entrepreneur must also be aware of the complexities of these kinds of transactions and the extra time it will take as well as the added costs that may be involved.

This seminar discusses all of these factors and how they come together in a financial package enabling you to finance a film … in the real world.

Who should participate? Established and aspiring filmmakers looking to raise venture capital for their independent films, production companies, movie slates, film funds, or other film-related ventures are well advised to attend this high-value yet low-cost intensive seminar. Entrepreneurs, technologists, attorneys, bankers, investment managers, venture capitalists, and other professionals with an interest in the film business will also find the Workshop worthwhile. Are you considering taking an active role in film or would you like to expand your current involvement? Don't miss this rare opportunity to gain highly relevant insights from a true veteran of the venture capital scene — and connect with like-minded peers in the process!

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This Workshop will be taught by Lewis Horwitz (bio), a creative financial pioneer and banker of over 48 years. For the past 35 years, Mr. Horwitz has led the way in financing independent film and television production through the company that bears his name, The Lewis Horwitz Organization (LHO). Under his leadership, LHO became a highly respected and deeply appreciated industry institution. Among the hundreds of films that received funding through LHO are such recent indie success stories as "My Big Fat Greek Wedding" and "Monster". Mr. Horwitz himself is generally regarded as the father of independent film financing, having pioneered the use of foreign presale contracts to collateralize film production loans as well as the use of gap financing and tax incentive funding. In 2004, he retired from the banking industry, formed Horwitz Entertainment Financial Services, Inc., and began consulting for the film industry. Mr. Horwitz is presently advising a number of independent production companies, banks and other entertainment-related entities, and provides expert witness testimony for law firms.

abstract | instructor | venue | schedule | program | bios | registration | help

Academy of Art University (AAU)
79 New Montgomery Street (at Mission St.)
Auditorium – 1st floor
San Francisco, CA 94105
(415) 274-2200

Map: Get a map of 79 New Montgomery St. from Ask, Google, MapQuest, MSN, Windows Live or Yahoo. Alternatively, use the map on AAU's website.

Our Host:

This Film Financing Workshop is graciously hosted by Academy of Art University (AAU), a leading private university founded in 1929 in San Francisco. With nearly 10,000 students that occupy its 30+ buildings in downtown San Francisco, AAU is considered the largest private school of art and design in the United States. It offers both traditional on-campus and online distance-education degree and certificate programs in a wide variety of fine arts-related majors, including Motion Pictures & Television and Animation & Visual Effects. In May 2007, AAU was granted regional accreditation by the Senior Commission of the prestigious Western Association of Schools and Colleges (WASC), one of the six major regional accreditation commissions recognized by the U.S. Department of Education.

At AAU's School of Motion Pictures & Television, students learn the ins and outs of "Lights, Camera, Action!" in a real-world movie studio setting with state-of-the-art equipment and guidance by top industry professionals. The School fosters creativity and independence in filmmaking as an art while also providing instruction in the commercial aspects of filmmaking as a business. The School's educational approach is dedicated to practical, hands-on training in a collaborative framework. Students are immersed in a broad range of filmmaking skills, including producing, directing, cinematography, lighting, sound, editing, and screenwriting. Ultimately, they concentrate on one area and train to become highly employable specialists in their chosen field.

Very special thanks go to Jack Isgro, AAU's Department Director of Motion Pictures & Television, and Curran Engel, Full-time Instructor in AAU's film school, for making this event possible!

abstract | instructor | venue | schedule | program | bios | registration | help

abstract | instructor | venue | schedule | program | bios | registration | help

1. Overview: Three approaches to financing independent film
   • Studio financing
   • Investor financing
   • Bank financing
2. Bank Financing
   • Bank loan versus investment
   • Meeting the banker
   • Collateral for the bank loan
     • Presale Contracts
       • Distribution rights
       • Minimum Guarantees
         • Foreign
         • Domestic
   • The Sales Agent
     • Relationship to bank
     • Relationship to producer
   • The Completion Bond
     • Relationship to bank
     • Relationship to producer
     • Relationship to investor
     • Delivery to distributors
   • Gap financing
     • Estimates
     • Collateral coverage
   • Filling the shortfall
     • Equity
       • Investment
       • Co-production
     • Tax programs
     • Subsidies
     • Super gap/bridge loans
   • The cost of financing your film
     • The real budget
3. Realities of independent film financing
   • Pitfalls and vigilance
4. The bright side
   • Yes, you can do it!
5. Investor Panel (45 min)
   • Moderated discussion with film financiers & investors

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– Lewis P. Horwitz: Mr. Horwitz is generally regarded as the father of independent film financing. He has had 48 years experience in bank and other institutional financing, 35 of which involved entertainment and entertainment-related projects. From 1958 to 1968, Mr. Horwitz was employed by Union Bank. During his tenure, he held various positions in both the operations and lending areas of the bank. In 1968, he joined Beverly Hills National Bank where he remained six and one half years in the capacity of Vice President and Branch Manager. It was there that Mr. Horwitz created and managed the first entertainment industry division for an independent bank. In 1974, he joined First Los Angeles Bank as Senior Vice President and was charged with the responsibility for organizing, packaging, supervising and administering loans to be utilized in connection with entertainment and entertainment-related projects. While at First Los Angeles Bank, Mr. Horwitz was recognized as a leading expert in entertainment lending and began lecturing and speaking throughout the U.S. and Europe on its many attributes. He has written several articles on various alternative methods of financing in the entertainment industry. In 1980, Mr. Horwitz left First Los Angeles Bank to form The Lewis Horwitz Organization (LHO). LHO is a financial services company lending money primarily for motion picture and television production. The company packaged and participated loans with banks throughout the world. In 1989, Imperial Bank acquired 100% of LHO. LHO retained its focus as a highly specialized entertainment lender as a division of Imperial Bank. During its tenure with Imperial Bank, LHO became the premier lender to the independent film community, providing creative financing techniques for motion picture and television production. In 1995, Mr. Horwitz developed and granted the first gap loan by an American bank. This innovation created a new form of financing for independent films. In 1999, Southern Pacific Bank purchased LHO. The company, under Mr. Horwitz's leadership continued to provide innovative financing for motion picture and television production while broadening its client base in other areas of lending in the entertainment industry. In 2002, Imperial Capital Bank purchased LHO. As President of the Entertainment Division, Mr. Horwitz employed 15 highly experienced lenders and administrative staff and provided financing for between 35 and 45 independent films per year. Financial structuring included Presales, Gap, Worldwide Co-Production, Tax Incentives and Government Subsidies. On July 6, 2004, after 48 years of banking and 35 years of entertainment lending, Mr. Horwitz retired from the banking industry and became a film consultant. His experience in the film and television industries as well as his knowledge and understanding of international distribution has resulted in numerous speaking engagements throughout the world. Mr. Horwitz is a past member of the Independent Film Industry Export Finance Task Force that was formed to study and create recommendations to increase American independent film exports to overseas markets. He is Vice Chairman, Finance of the International Film and Television Alliance (IFTA) and a member of IFTA's Executive Committee. Mr. Horwitz is also the Chairman of IFTA's Affiliated Financial Institutions and President of the IFTA Foundation. (The IFTA Foundation was established to meet the educational and charitable needs of the independent film industry and it local communities.) Moreover, he is responsible for the formation and structuring of the U.S. Export-Import Bank Film Production Loan Guarantee Program.

– Thomas Trenker: A Wall Street investment banker & Silicon Valley startup executive turned independent film financier, Mr. Trenker (LinkedIn profile | full bio) serves as Chairman of the Institute for Int'l Film Financing (IIFF), an innovative, independent social-impact organization that endeavors to bridge the gap between the worlds of filmmaking and finance for the benefit of all stakeholders, including the public at large. IIFF was founded in 2003 and incorporated in California as a not-for-profit, public benefit corporation. Headquartered in San Francisco, IIFF has active chapters in multiple cities across the U.S. and continues to grow and expand rapidly. Mr. Trenker is also Managing Director of FilmAngels, the world's first professional angel investor organization for film. Modeled after the way successful angel groups function in Silicon Valley, and adapted to the unique characteristics of the movie industry, FilmAngels focuses exclusively on the financing of independent films and film-related ventures. FilmAngels was founded by a group of accomplished Silicon Valley professionals with backgrounds in venture capital, investment banking, corporate law, real estate, software, and angel investing. The founding team developed the FilmAngels process and established the FilmAngels organization to address the unfilled need for a structured, highly efficient and, ultimately, more effective environment for the screening and financing of high-risk independent film projects. In addition to his leadership roles at FilmAngels and IIFF, Mr. Trenker organizes a variety of events and initiatives at the junction of filmmaking, entrepreneurship & venture capital. He is always on the lookout for worthwhile and intriguing new indie film projects that are seeking investor financing; don't hesitate to connect with Mr. Trenker via LinkedIn or at an upcoming IIFF meeting.

– Erik Cleage, Film Investor.

– Wayne Repich, Film Investor.

– Saad Khan, Venture Capitalist & FilmAngels Member.

– Greg Berkin, FilmAngels Member.

– Jeff Brandstetter, Film Investor.

*** TO BE FINALIZED SHORTLY ***

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