A new £30m "capital protected" film financing fundhas been launched in London. MagicGate is a joint venture between fund managerStargate Capital Management and UK production company Magic Hour Media whosecredits include MIke Barker's A Good Woman.

MagicGate aims to invest in four films in the £5m to £10m range over the next18 months. It will cover around 30% of the budgets of the projects it backs,but is likely to board films only in advanced states of development.

"It is not our aim to be a full-fledged production company," saidStargate's David Kraftman "It's our aim to come in when most of theelements are in place: the co-production deals are in place and the sales agentis already attached, preferably with two pre-sales already in place."

The chief selling point of the MagicGate Fund is that it combines fixed termsecurities with EIS film investment. 28.5% (likely to be around £8m) of thefund will invest in films made by EIS qualifying production companies. However,64% of the fund will be invested in "A-rated or other appropriatesecurities." These securities will provide the safety net for theinvestors. Even if the Fund Manager loses every penny invested in the EISqualifying film companies, MagicGate has been set up in such a way that investorsstill stand to recoup 90% of their original outlay.

The minimum investment required is only £10,000 - something that MagicGatebelieves will help lure a broad range of investors.

Though details of the new Fund are complex, it is still likely to pique curiosity.With the UK production industry in the doldrums, Liam Badger, CEO of Magic HourMedia said he anticipated that the new product would be welcomed by producersand investors alike.