Information on the Target

Together (TGT) is a French investment fund focused on supporting small and medium-sized enterprises (SMEs) and small mid-caps operating in the audiovisual sector, including production, distribution, and broadcasting. The fund aims to support companies aiming for growth and internationalization within Europe, striving to provide essential financial backing to independent producers.

With an initial capitalization of €58 million, TGT is on course to achieve a target size of €100 million. It is uniquely positioned to transcend national funding barriers, ensuring that European producers can continue to deliver high-quality audiovisual content while retaining intellectual property rights. By acting as a minority shareholder, TGT will help maintain these producers' independence and creative control.

Industry Overview in France

The audiovisual sector in France is a vibrant and critical component of the country's cultural landscape, known for its rich history and diverse media offerings. France has long been a hub for film production, animation, and digital media, attracting global filmmakers and significant investments. The French government has actively supported its audiovisual industry, providing a framework for subsidies and incentives that foster local productions.

In recent years, the industry has witnessed the emergence of integrated audiovisual groups, which has marginally left independent players with limited growth opportunities. However, technological advancements and changing consumer behavior are reshaping the industry, with a notable shift toward streaming services and digital distribution channels. As consumers increasingly demand diverse content options, producers face both challenges and opportunities to innovate and cater to evolving preferences.

The French audiovisual sector also grapples with the responsibilities of maintaining cultural identity in a globalized market. As the digital landscape continues to grow, producers are challenged to create distinctly French content that engages audiences globally while adhering to national laws regarding content rights and distribution. The InvestEU's MediaInvest programme aims to address these challenges, enhancing investment in European productions to ensure competitiveness and sustainability within this dynamic market.

Looking ahead, the sector is expected to further evolve with rising investments and collaborations among various stakeholders, finalizing a robust environment for independent producers to thrive. Enhanced financial support mechanisms, such as the TGT fund, will play a crucial role in enabling these entities to scale and compete effectively on a larger international stage.

The Rationale Behind the Deal

The commitment of €25 million by the European Investment Fund (EIF) to the Together fund is pivotal in reinforcing the growth of Europe's cultural and creative sectors. This investment not only demonstrates EIF's commitment to providing financial assistance but also aims to pool additional private and public investments to elevate the fund's impact.

This deal is particularly significant as it focuses on independent producers, who often face substantial barriers to financing. By mobilizing substantial capital through the Together fund, EIF allows for a more equitable growth path, ensuring that independent players can compete in an industry predominantly dominated by larger groups. This initiative effectively enhances the diversity of content available to global audiences.

Information About the Investor

The European Investment Fund (EIF) is a crucial entity within the European Investment Bank (EIB) Group, tasked with supporting small and medium-sized enterprises (SMEs) by facilitating their access to finance. By developing capital investment instruments, guarantees, and microfinance solutions, EIF aims to further key EU policy objectives such as innovation, digitalization, and economic growth.

EIF plays a vital role in the InvestEU programme, which consolidates various EU financial instruments to stimulate investment within the EU. Through this initiative, EIF is leveraging private funds to promote sustainable recovery, thereby addressing critical market gaps that restrict investment across different sectors, including audiovisual production.

View of Dealert

The investment in Together (TGT) by the EIF represents a promising step toward revitalizing the independent audiovisual sector in France and Europe. Given the increasing pressure on traditional production models, supporting independent producers will positively impact the industry's creativity and diversity. Furthermore, as the industry shifts toward digital platforms, the timing of this initiative is propitious, as it aligns with emerging market demands for unique, high-quality content.

Moreover, the minority shareholder approach ensures that producers maintain control over their creative processes, which is crucial in retaining talent and fostering innovation. This funding model reflects a growing understanding of the inherent value included in creative ownership, which should appeal to institutional investors who seek long-term returns.

While potential risks exist due to changing technology and viewer habits, the proactive steps taken by TGT to provide hands-on support and market insights position the fund favorably for long-term success. The collective expertise of the TGT management team, led by Alexandra Lebret and Antoine Bodet, further enhances investment attractiveness.

Ultimately, the EIF's support catalyzes the formation of a more robust financial ecosystem for independent cultural actors, driving sustained growth and allowing these producers to capitalize on their talents effectively. Hence, the Together fund stands as a solid investment opportunity in the context of the evolving audiovisual landscape.

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