Vine Alternative Investments

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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