QED International CEO Bill Block and PalmStar Media Capital CEO Kevin Frakes have teamed up with Merced Capital L.P. to launch a $500m-plus development, production and financing feature fund.
The venture will seek to produce a slate over the next three to five years focused on wide-release, filmmaker and star-driven commercial features.
The parties said the plan calls for a robust development platform. Merced’s Raj Singh and Stuart Brown oversee the company’s media investments.
Media Content Capital, the backer of Block’s QED International, will be involved in projects with Merced Media.
Merced Capital was established more than 20 years ago as an alternative investment entity and currently manages aggregate committed capital of more than $2.5bn.
Since 2012, Merced Capital has invested in such films as November Man, Rush, American Ultra, Sing Street and Term Life.
Block (pictured) has played an integral role in the creation of films like David Ayer’s upcoming Fury starring Brad Pitt, Barry Levinson’s Rock The Kasbah starring Bill Murray, as well as the Neill Blomkamp films District 9 and Elysium.
Frakes has served as a film financing advisor to Merced Capital since 2012. His recent producer and executive producer credits include Term Life, November Man, recent Toronto hit Pawn Sacrifice, Laggies and John Wick.
Stephen Saltzman of Loeb & Loeb represented Merced in the deal, while Josh Grode at Irell & Manella represented Block and Jonathan Gardner of Cohen Gardner represented Frakes.