Posted by PPIF on 28 September 2026
Navigating niche markets: A deep dive into film and television financing
What can investors learn from specialist asset classes when searching for diversification and uncorrelated returns? Adrian Politowski, Executive Chairman & Co-Founder of ALIGN, shares his experience in film and TV financing, highlighting the key opportunities in this segment of private credit.
Key takeaways for investors:
- Uncorrelated returns: Film and TV financing operates on cycles independent from macroeconomic trends, making it an attractive diversification tool for investors seeking decorrelation from traditional markets.
- High yield from structural inefficiency, not risk: The niche nature of the sector means few banks compete, allowing high yields backed by secure counterparties like HMRC, without taking on proportionally more risk.
- Rigorous deal selection: Out of approx. 400 projects reviewed annually, only about 5 receive funding. Selection prioritises seasoned teams, OECD sovereign-backed tax credits, and blue-chip distribution contracts to ensure strong downside protection.
- Future growth in underserved media niches: As the media industry evolves (content creation, AI, European mid-market companies), banks remain slow to adapt, creating ongoing opportunities for specialist lenders with deep industry know-how to fill the gap.
The allure of film and television as an asset class
The film and television industry provides unique opportunities for investors seeking to diversify their portfolios. Unlike traditional asset classes, these investments remain largely uncorrelated with macroeconomic cycles, making it a key component for those aiming for decorrelation from traditional markets. The majority of investors in this sector include family offices and funds of funds, who are particularly attracted by this trait.
Structuring for predictable returns
One of the distinct advantages of film and television financing is the ability to offer high yields without elevated risk. This is achieved through capitalising on structural inefficiencies within the industry. Loans in this sector are typically fixed premium, insulating them from global interest rate movements. A significant portion of lending activity is secured against sovereign-backed tax credits and distribution contracts, particularly with blue-chip companies like Netflix, Universal, and Amazon.
The niche nature of the industry and the requirement for specialised knowledge mean fewer banks are involved. This minimises competition, allowing for the selection of high-quality opportunities, backed by strong counterparties that provide secure returns. For instance, when lending against UK sovereign-backed tax credits, yields can reach 11-12%.
Key traits of quality opportunities
In a field characterised by a large volume of projects, Politowski emphasizes the importance of team evaluation over the project itself. Working only with seasoned and competent teams is crucial, despite the collateral being the primary exposure. Out of numerous opportunities, only a select few are deeply analysed, particularly focusing on the quality and reliability of the collateral. This cautious and thorough approach ensures engagement with only the most promising prospects.
Future growth and opportunities in film & TV financing
Looking ahead, Politowski outlines plans for growth within the media sector, adhering to the principle of exploiting underserved verticals with their expertise. The continuous evolution of the media landscape, whether through content creation or technological advances like AI, offers ample niche opportunities. European mid-market media companies, in particular, represent a promising field due to a lack of engagement from traditional banks. For specialist lenders, these openings provide a fertile ground to apply their extensive industry knowledge and capital networks, thereby delivering substantial returns to investors.
Politowski's insights into film and television financing reveal a landscape rich with opportunity. By leveraging niche asset classes, investors can achieve diversification and decorrelation, supported by structured and secure returns. The discussion underscores the importance of expertise and caution in engaging with this niche market, paving the way for continued success and growth in the specialised private credit sector.
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