Macquarie Film Corporation
| Company type | Subsidiary |
|---|---|
| Industry | Film financing |
| Founded | 2002 |
| Defunct | 2006 |
| Headquarters | Australia , Australia |
Area served | Australia |
Key people | Bryan Lowe (CEO), Charles Wheeler (Executive Director) |
| Products | Film financing and investment |
| Owner | Macquarie Bank Limited |
| Parent | Macquarie Bank Limited |
The Macquarie Film Corporation was an Australian film financing entity active between 2002 and 2006, formed as a subsidiary of Macquarie Bank Limited.
Background
MFC was among two firms authorized under the Film Licensed Investment Company Act 1998, a program introduced following David Gonski's 1997 Review of Commonwealth Assistance to the Film Industry. Through this initiative, investors obtained full tax deductions for shares in a Film Licensed Investment Company (FLIC), which then funded eligible Australian film projects. The objective was to mitigate risk by distributing investment across numerous productions instead of concentrating on individual films. The other approved company was Content Capital Ltd. Each licensee was permitted to raise up to $20 million within two fiscal years ending June 2000.
Federal Arts Minister Peter McGauran noted that while Content Capital emphasized industry expertise and nurturing creative talent, Macquarie Film Corporation utilized its extensive capital resources and corporate framework to adopt a portfolio investment strategy. This contrast enabled analysis of differing operational models.
Charles Wheeler, serving as both executive director at Macquarie Bank and director at MFC, anticipated pre-tax returns ranging from 20% to 25%, with ambitions to extend financing activities internationally:
“Our goal is to become a leading force in Australia's entertainment finance sector... Investment opportunities are virtually unlimited when maintaining a global outlook... Commercial projects are essential—the more commercial, the better... Although this pilot scheme’s tax incentives attract investors, our aim is to demonstrate that film can be a profitable investment independently of such benefits.”
To oversee MFC’s portfolio and strategic direction, Macquarie established Macquarie Filmed Investments, which operated on a management fee basis.
The board included CEO Bryan Lowe, Russell Leslie, Kerrie Mather, Michael McMichael, and James Mitchell, formerly General Manager of Beyond International. Industry insiders expressed curiosity about how Macquarie Bank would approach creative decision-making for supported productions.
Under the FLIC arrangement, $22.4 million was raised in total—$16.26 million allocated to Macquarie and $6.14 million to Content Capital. Management of Macquarie Film Corporation Ltd was handled by Macquarie Filmed Investments Pty Ltd. The company's 2000 prospectus projected returns of 25% over five years through a diversified investment portfolio.
Films
Macquarie Film Corporation collaborated with the government-funded Film Finance Corporation (FFC), which agreed to finance half the budget if producers secured domestic distribution and an international sales agent; MFC would supply the remaining funds.
MFC’s initial success came with Dirty Deeds, followed by Crackerjack, which earned $8.6 million against a $3.5 million budget. Between 2002 and 2003, MFC raised approximately $20 million via the Nine Macquarie Film Fund, capitalizing on Nine Network’s guaranteed acquisition of TV series such as Young Lions and McLeod's Daughters. This fund served as a mechanism for Channel Nine to offload production expenses while attracting investors through an expanded film slate. Projects financed included Getting Square, The Extra, Under the Radar, and You and Your Stupid Mate, with distribution handled by Channel Nine and Hoyts, both under Kerry Packer’s ownership at that time.
Nonetheless, many subsequent films failed to achieve critical acclaim or commercial success, resulting in investors recovering only 15 cents per dollar invested. Even Crackerjack—which involved a $930,000 investment from Macquarie—had recouped merely $663,000 by 2004.
Critiques directed at MFC included:
- Investors receiving equal recoupment rights alongside FFC rather than priority repayment;
- Weaknesses in screenplay quality;
- Excessive dependence on comedy genres.
Richard Harris from the Australian Directors Guild condemned MFC’s formulaic strategy, arguing it favored market-tested genres over artistic merit. In 2006, one filmmaker remarked that "Macquarie nearly killed the film industry."
Filmography
- Dirty Deeds (2002)
- The Nugget (2002)
- Crackerjack (2002)
- Horseplay (2003)
- The Wannabes (2003)
- Danny Deckchair (2003)
- Bad Eggs (2003)
- Gettin' Square (2003)
- Take Away (2003)
- Under the Radar (2004)
- The Extra (2005)
- You and Your Stupid Mate (2005)
Television
- Postcard Bandit (2002) (TV movie)
- Young Lions (2002) (TV series)
- McLeod's Daughters (2002) (TV series)
Projects Announced but Not Realized
Macquarie declared intentions to produce several films that ultimately were not completed:
- Hitches – a dramady with a budget of $11 million, to be directed by Fred Schepisi
- Bachelor Kisses – a television movie adaptation of a novel by Nick Earls, with Penny Chapman as producer
- Mondo – a dark comedy script by Ian David, planned to be directed by Jonathan Teplitzky
- Mozart Maulers – a comedy project under direction of John Polson
Financial Performance
As of the conclusion of 2004, the financial outcomes for Macquarie Film Corporation's investments were recorded as follows:
| Investment | Initial Carrying Cost | Write-downs | Income | Carrying Value |
|---|---|---|---|---|
| Dirty Deeds | $2,000,000 | −$1,691,000 | $305,330 | $3,670 |
| The Nugget | $2,112,800 | −$1,817,800 | $223,477 | $71,523 |
| Horseplay | $1,100,000 | −$1,100,000 | $0 | |
| Crackerjack | $930,000 | $0 | $662,959 | $267,041 |
| Take Away | $677,803 | −$677,603 | $0 | $0 |
| Bad Eggs | $2,341,571 | −$1,990,571 | −$1,990,571 | $351,000 |
| Danny Deckchair | $3,050,000 | −$3,050,000 | $0 | |
| The Wannabes | $3,110,721 | −$2,460,721 | $650,000 |