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Exclusive: Vine raising $300 million film royalty fund

January 29, 2014: 12:35 PM ET

Vine is latest in recent string of 'income funds' to hit the private equity market.

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FORTUNE -- Vine Alternative Investments is raising $300 million for a new fund that would invest in film and television show royalty streams, Fortune has learned.

This would be the same size as Vine's second fund, which had generated a 17% internal rate of return through last March (net to limited partners). Its debut vehicle, which began investing in May 2007 and was fully realized by January 2013, has a net IRR of 10.2%. In both cases, Vine argues that film and television royalty streams have a low correlation to... well, to just about everything else.

Vine has set a $400 million hard cap for the new fund, with a $5 million minimum investment for institutions.

To date, the New York-based firm has invested in more than 400 films, including Ace Ventura, Black Hawk Down, DreamGirls and Rent. Investment sizes have ranged from around $5 million to $45 million.

Vine is led by Jim Moore, a former structured finance banker at both Dresdner Kleinwort and J.P. Morgan (JPM).  His partners include fellow Dresdner Kleinwort vets Bill Lambert and Stephen Kovach, plus Los Angeles-basedh Rob Amir, a former Rizvi Traverse managing director who also spent five years working on film biz dev at Sony.

Moore declined to comment, citing SEC prohibitions on solicitation.

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Dan Primack
Dan Primack
Senior Editor, Fortune

Dan Primack joined Fortune.com in September 2010 to cover deals and dealmakers, from Wall Street to Sand Hill Road. Previously, Dan was an editor-at-large with Thomson Reuters, where he launched both peHUB.com and the peHUB Wire email service. In a past journalistic life, Dan ran a community paper in Roxbury, Massachusetts. He currently lives just outside of Boston.

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