The Relativity Media banner may conjure memories of the Ryan Kavanaugh era. There was that data-driven formula to “predict” box office success and minimize risk, the highs of hits like Bridesmaids and Mamma Mia!, the lows of the likes of Masterminds, the nine-figure financing rounds and ultimately the bankruptcy filings. (The Kavanaugh quote “Am I sorry? Of course I am,” once graced the cover of The Hollywood Reporter as the company crumbled ten years ago.)
Since Relativity Media emerged from bankruptcy in 2018 it hasn’t been affiliated with Kavanaugh and has kept a lower profile than its heyday. Its ownership group is titled UltraV Holdings LLC and includes former Bally Technologies chief David Robbins, Miron and funds managed by CEO Stephen Ketchum’s Sound Point Capital.
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Relativity started its latest chapter with U.S. rights to Angelina Jolie and David Oyelowo-starrer Come Away in 2020. This was the COVID year of shuttered theaters, so it ended up grossing less than $1 million stateside. Its recent releases have included 2023’s John Cena actioner Freelance ($5.3 million domestic), Ben Affleck thriller Hypnotic ($4.5 million) and Jessica Chastain-Peter Sarsgaard drama Memory (less than $1 million).
But the Los Angeles-based Relativity Media is now looking to be a more active player in the domestic acquisition and development space, and it has secured financing to do so, days before the Marché du Film kicks off for Cannes buyers looking for deals May 13-21 during the festival.
Debt business Content Partners Capital, led by film finance veteran Alphonse Lordo, is pledging to invest in Relativity’s $100 million initiative over the next five years as it grows its presence in the theatrical feature acquisition space. The company plans to back 14 wide releases in theaters by 2027 as a domestic distributor.
Some background about Lordo’s credit investing unit: It’s a relatively new division of Content Partners LLC. That’s the prominent Steve Kram and Steven Blume-led Hollywood investment firm that buys out backend profit participation from companies and talent. It has built up a large holding of some 600 movies and 3,000 hours of TV and also owns Revolution Studios, home to a library of the likes of Black Hawk Down, Hugo, Black Swan and Vin Diesel‘s xXx action series.
Intellectual property is part of the equation and, despite the bankruptcies, Relativity still holds certain rights to a trove of its Kavanaugh era projects, including Bradley Cooper starrer Limitless, Oscar winner The Fighter, Navy SEAL box office hit Act of Valor, Miles Teller comedy 21 & Over and Nicholas Sparks adaptation The Best of Me. Relativity’s owners also say they retain prequel and sequel rights to nearly every title in its library that it has previously produced.
“There’s just not enough independent distribution platforms to acquire and release new, independent commercial fare,” Lordo says, referring to a thinning landscape of indie distributors like A24, Neon, Bleecker Street and Vertical Entertainment. “I think you’re going to see a reemergence of independent content creation and distribution that can live alongside a streaming and major studio ecosystem.”
He added, “That’s kind of the wager here. We think it’s potentially a multibillion dollar market again. What we understand is the supply side — the producers, the creatives — they’re looking for alternatives to release their content under.”
As far as making that wager, why Relativity as that vehicle? “They have a great library, very commercial. They have a distribution team who’s very good at monetizing these assets,” Lordo says. “When they do acquire films they make money at doing that. They’re very good at making money. This kind of dovetails into the Content Partners Capital thesis: we’re here to invest into companies across the entertainment media industry — film, TV, music, sports — and we look to find it on an asset-based perspective.”
The thinking is that this $100 million will provide new runway for Relativity Media to make more bets in the acquisition and distribution space. “We are excited about the strategic partnership with Content Partners Capital, and believe that together we can grow our Revenue and EBITDA significantly over the near term,” stated Relativity Media CEO Miron. “We have a strong management team, a high quality library, a healthy pipeline of new projects and a robust capital structure. Our relationship with CPC will provide a key ingredient to accelerate Relativity Media’s return to the forefront of independent film studios.”
The Relativity deal marks the second move for Lordo — who earlier worked at Truist Securities, OneWest Bank and Bank of the West — since launching Content Partners Capital last August with a debt agreement with content financier Media Capital Technologies (which backed The Best Christmas Pageant Ever at Lionsgate).
“Relativity Media represents a rare combination of proven legacy, revitalized leadership, and a forward-looking strategy that aligns with where the film and television market is headed,” Lordo adds in a statement. “Our investment supports their ambition to scale high-quality content while reinforcing CPC’s commitment to fueling the next generation of media businesses through tailored, strategic capital.”
