How fascinating to participate in a London West End show. As one of the lead producers in a UK show, here’s some FAQs about it:
1. How much do I need to invest to participate?
The average investment is $50,000. But, for the upcoming London production of A BRIEF CRACK OF LIGHT, a unit is $25,000. And we accept a half unit ($12,500). In a profitable UK show, investors receive their investment back (recoupment) first, and then 60 percent of profit after that (compared to 50 percent for Broadway).
2. Can I lose more than I put in?
No. Our offering document has a clause that limits your liability to your initial investment.
3. Can anyone invest? Do I have to qualify?
The offering is for accredited investors—currently $1 million in assets or an income of $200,000 for an individual or $300,000 for a couple. Or you may qualify as a sophisticated investor if you don’t meet those qualifications.
4. What about productions after the initial one?
When you invest in the originating production, or the “Mother Ship,” you have the right (but not the obligation) to invest an amount proportional to your initial investment in any additional “Mother Ship” company (i.e. tours, Broadway, etc). All those other productions pay a royalty, and some net profits go back to the Mother Ship and the original investors.
5. Do I get to go to opening night?
Investors receive lots of perks, including an opening night reception, tickets, and cast party. You also may get access to “house seats” (full price tickets reserved for VIPs), and be invited to dress rehearsals, meet and greets, and more.
6. How does this work with my taxes?
You will receive a K1 for the production. Talk to your accountant about how an investment (successful or not) will impact your taxes. A profitable production returns income to you over time; you write off any loss on an unsuccessful one.
7. Is this type of investment right for me?
Investing in Broadway or London shows is a risky endeavor. No one can predict a hit. I would say to a first-time investor, “Write this check like you’re making a charitable contribution to theater.” Our Producers’ goal is a risk-appropriate return to our investors. We have invested time and money to make this an exceptional production. With two previous successful productions and a Broadway reading, A BRIEF CRACK OF LIGHT is ready for the West End.
8. How do I pick my first show to invest in?
Pick a show that appeals to you. Then, if it does disappoint you and doesn’t recoup, you’ll still be proud that you helped make it happen. And because you love theater. To increase your odds, pick a show that has an experienced, successful team; also, stars on the marquee bring magic to the production! In the final analysis, you’re helping to bring a new play to the theatre canon, to be seen for generations to come.
Note: This does not constitute an offer for or advice regarding the sale, purchase, or transfer of securities; but rather is for general information purposes only. Any offer or related information regarding financial participation in a specific theatrical production can be made only in accordance with offering documents prepared and distributed in accordance with applicable Federal, New York, and other applicable state and local laws and regulations. Investors must qualify as accredited or sophisticated.
