German media funds are expected to raise Euros1.5bn in 2002 from private investors to finance feature film and TV production - 25% less than last year.

This will be the second year in a row that fund investment levels will have fallen.

In his newly published survey of the performance of private investment funds, leading fund analyst Stefan Loipfinger reported that in 2001, the volume of capital raised from investors fell by 3% to Euro 2.05bn.

One of the reasons for the decline is that changes in tax legislation saw leasing-oriented funds attract 36% less capital - Euros906m - in 2001, while the so-called entrepreneurial "producer" funds increased their share of the market from Euros891m to Euros1.15bn.

The threat of proposed tighter regulations surrounding film funds has also created uncertainty among investors - contributing to the investment fall. (, July 9)

Among the top leasing funds, market leader KGAL/ALCAS - which raised Euros414.3m in 2000 slipped to third place with Euro 151.2m last year. This was behind LHI Leasing's Euros270.2m and Hannover Leasing's Euros232.9m. Bayerische Immobilien Leasing, which had intended to create the largest leasing film fund of all time with a volume of Euros1.2bn, only mustered Euros149.3m.

Meanwhile, ALCAS/KGAL's "producer" funds took pole position with a volume of Euros202.2m, followed by Ideenkapital's Mediastream (Euros141.4m), Commerzbank's Academy Film Fund (Euros140m) and previous market leader Cinerenta (Euros112.5m, compared to 2000's Euros170.2m).

Despite the falls, funds are still proving an important source of production cash for both Hollywood studios and international producers. Last month, Ideenkapital's Mediastream fund added two more 20th Century Fox films to its slate - apparently in response to burgeoning investor demand. (Screen International, Nov 1)