Does the crash of Germanys Neuer Markt spell the end of the German film funds?
No. With the exception of individuals who only chose to invest in film funds because they were able to redeploy gains from the Neuer Markt, there is no direct link between these two very different instruments. As a result, the bankruptcy of Kinowelt and EM.TV should have as little impact on film funds as the Enron debacle will have on the price of light bulbs. 2. It seemed everybody and their Vater launched a German film fund last year. Where did the market end up? Based on the last five years of results, it was a very strong year. Based on expectations, it was a disaster. Had every deal that was announced fully sold its inventory last year, the public market for film funds would have nearly doubled — an ambitious goal for a market that had just doubled in the previous 12 months. Screen Capital Intl. — my company — estimates that an overheated marketplace of sellers led to an overall contraction in the public funds market volume. Expect the final tally for 2001 to be 8%-10% off its
