The Theatre Fund, a new alternative to the traditional theatre investment model, is being launched this month.
Advised by Act Productions Limited, an established leading theatre producer, The Theatre Fund will give individual investors the opportunity to participate in the potential returns from successful West End theatre production.

Among the features it offers are: 
 

• Tax advantages (unlike traditional theatre production investment) for qualifying investors, under the Enterprise Investment Scheme (EIS). These include up-front income tax relief of 30% and profits free of capital gains or income tax;
• An enhanced percentage financial participation for investors (including a 70% share of profits compared with the traditional 60%, and participation in pre and post-recoupment producer royalties traditionally retained by the producer);
• Diversification of investment risk across a professionally selected portfolio of productions (in contrast with the traditional theatre investment model where profit or loss on investment is solely dependent on the success or failure of one show);
• The opportunity to invest in all Act Production shows, including those ineligible under The Theatre Fund criteria;
• Additional privileges as available, including complimentary tickets to opening night or preview performances, invitations to meet cast, and access to VIP house seats across the West End.

Qualified investors can find further information and register their interest in The Theatre Fund at www.thetheatrefund.co.uk.  The Fund Manager, Prosper Capital LLP., is authorised and regulated by the Financial Services Authority.

The position of adviser to The Theatre Fund will be filled by Act Productions Limited.  Act is one of the West End's theatre producers with a track record of over 15 years of West End productions across a comprehensive range of genres.  J. Alan Davis (Managing Director) heads Act's management, which is supported by a Board including highly experienced non-executive directors: Roger Wingate (Chairman), Lord Chandos, David Parkhill and Adam Kenwright.  Through their company, CMP, veteran general managers Nick Frankfort and Tobias Round have agreed to provide general management as required for The Theatre Fund productions.

Act's position in the market means that it is aware of a high proportion of the potential productions at an early stage in their development. After the launch of The Theatre Fund, Act will not invest for its own account in eligible productions unless The Theatre Fund has been given a similar opportunity to invest.

West End theatre attendance and revenues have had over seven years of consistent growth, says the fund, despite the negative economic backdrop, with 2009 revenues exceeding £500m for the first time and attendances achieving a record 14.26 million. Total revenue for plays was up 11% through the end of 2010 year on year to date compared to 2009. Despite hard economic times in the UK, 2010 proved to be another successful year for London Theatre.
More than 14 million theatregoers attended a performance in one of London's major venues last year. This impressive number, though down 0.79% on 2009, led to a record year at the box office, with theatres taking £512,331,808. (Source: Society of London Theatres).