Each year approximately 30% of the nation’s total available advertising time and space remains unsold. Each day media outlets (broadcast radio and television stations, cable television stations, networks, print and Internet publishers, billboard companies, etc.) are left with an inventory of time or space, which cannot be converted into revenue.
As a result, thousands of unsold television time slots must be dedicated to promotions for upcoming programs instead of income-producing commercials because no one purchased those time slots. Thousands of magazine and newspaper pages must be deleted from current editions because not enough advertising space was purchased. Thousands of hours of radio air time are sacrificed to station promotions, public service messages or the patter of DJs because this time was not sold.
This unsold media represents a huge pool of unused commodity assets that perish on a daily basis without producing value. Global Media Management, LLC (“GMM also referred to as the “General Partner”) has created a financial system that converts this pool of unsold media assets into investment capital that eventually yields significant, long-term returns on what would otherwise be “non-performing” assets with unrealized potential.
Traditional mutual fund is capitalized with cash. However, the Global Media Capital Fund 1, LP (“GMCF”) is capitalized with “prepaid media credits”
in the form of appraised and audited advertising time and space including spot television and radio advertising, magazine, newspaper and out-of-home advertising and Internet advertising contributed by media outlets.
These prepaid media credits represent future opportunities for the GMCF to use this media whenever and however it is needed. All prepaid media credits are scheduled for delivery within a ten-year term. The GMCF will be capped at $10 billion in capital assets.
The initial value of the media to be invested is established by negotiation between the GMCF and each media outlet.
For each $1,000,000 of prepaid media credits invested by a media outlet, the media outlet receives a $1,000,000 limited partnership interest (expressed in Units of Limited Partnership) in the GMCF. The immediate effect of this transaction is that the media outlet (“Limited Partner” and collectively, the “Limited Partners”) can take a future non-income-producing event and convert it into a current asset (i.e. the limited partnership interest) on its balance sheet.
Once prepaid media credits reside in the fund, they can be used in two different ways: (1) They can be invested directly in mature public companies or (2) Carefully selected private growth opportunities as if they were cash or they can be used as collateral to secure cash via GMM's proprietary securitization and monetization model.
Consumable Media Credits
Prepaid media credits used for direct investment are referred to as “consumable media credits”. This is the primary intended use of the prepaid media credits contributed to the fund. The GMCF invests consumable media credits in a diverse portfolio of media-driven companies and other qualified opportunities.
Consumable media credits are invested as if they were cash earmarked for purchasing the media necessary to advertise and promote a portfolio company’s product(s) or service(s). This investment requires a marketing strategy and media plan approved by GMM.
As the portfolio company’s marketing strategy and media plan are executed, the media credits are “consumed” as prepaid advertising placed with the appropriate media outlets that are Limited Partners in the GMCF. In exchange for this investment, the GMCF receives participation in the revenues from each of its portfolio companies and/or equity.
All investments are evaluated, endorsed and managed by the GMCF Investment Committee, which is comprised of recognized experts in the fields of business finance, development and management, as well as marketing and advertising. GMM's MarCom division, a full-service marketing communications consultancy, is responsible for developing and implementing the strategic marketing and/or media plans for each portfolio company. The MarCom division includes seasoned, successful, award-winning professionals with a broad range of expertise in all forms of marketing communications.
The GMCF pays the Limited Partners 80% of all profit distributions generated from the investment of consumable media credits until the Limited Partners receive 100% of the total value of the media each has contributed to the fund. The General Partner receives 20% of such profit distributions during this period. Thereafter, all profits from consumable media credits are divided equally (50%/50%) between the Limited Partners and the General Partner.
Collateral Media Credits
The GMCF can also monetize or securitize prepaid media credits yielding cash for additional investments or collateral for the issuance of loans, high-yield bonds or other debt instruments. These “collateral media credits” can also be invested in a portfolio company as a balance sheet “enhancement” that may be subsequently monetized if the liquid equivalent is required. However, the GMCF’s structure allows collateral credits to be utilized for their media value (as consumable credits) at any time.
The GMCF pays the Limited Partners 50% of all profit distributions generated from the investment of collateral media credits. The General Partner also receives 50% of such profit distributions. The profits from any collateral credits that are consumed as media are distributed using the formula for consumable media credits set forth above. Regardless of which profit distribution formula is used, both consumable media credits and collateral media credits are ultimately converted to cash.
Close Your Eyes
Imagine your company investing $1,000,000 of unsold media – time or space that would otherwise generate absolutely no value – in an emerging corporate superstar such as a Dell Computers, a Microsoft, a Yahoo or a Google. Imagine your company with a vested interest in the next Star Wars, Shrek, Lord of the Rings or Harry Potter motion picture franchise. Imagine your company participating in the long-term financial success of dozens of select business opportunities.
Open your eyes. Stop imagining. The Global Media Capital Fund 1, LP already contains more than $1 Billion in prepaid media assets. It is already helping consumer products manufacturers, entertainment companies, software developers and other qualified businesses realize their market and profit potential. And despite the challenges of an increasingly fragmented media marketplace and the steady migration of advertising dollars to the Internet, you now have the opportunity to participate in these wins, to use your inventory of unsold media to fuel a revenue-generating powerhouse, to transform your non-performing assets into bottom-line profits.
Contact a Media Acquisition Specialist today. Find out how easy it is to invest in the Global Media Capital Fund.
Ask questions. Consider potential risks and the potential ROI. Get all the information you need and get in the game.
We’d love to hear all about your project.
Get in touch with us.
Convert Your Unsold Time, a Non-Performing Asset,
to Profit and Equity.
Global Media Capital Fund 1, L. P.
Chairman/Chief Executive Officer
301 S. Perimeter Park Drive
Nashville, TN 37211