Since its founding in 2006, Content Partners has focused on acquiring backend rights from talent and production companies — paying an upfront amount in exchange for a share in the future profits of an entertainment asset. The firm has amassed a portfolio of over 500 films and 3,000 hours of television content, including stakes in high-profile properties such as the CSI franchise, Black Hawk Down, and Black Swan.

Backend deals have become more contentious in recent years as a result of the streaming-led structural shift in the entertainment industry.

Accusations of 'Hollywood accounting,' in which a studio obscures a media asset's true profitability to avoid paying a portion of profit-sharing distributions, have always been a potential pitfall.

Now, however, with the launch of studio-owned streaming services, there's even less transparency. Studios have little motivation to maximize value when selling a production to their own platform, and if they also know that their profit participation liabilities will increase the greater the sale value, they may even be incentivized to sell an asset for as little as possible.

Content Partners' new unit could be partially motivated by a desire to diversify away from backend deals, or it could just be an opportunistic move into fast-growing private credit. Either way, the firm will enter the market with uniquely strong industry expertise and a deep network.

CPC's strategy will target IP-heavy business models across film, television, and music, offering a range of tailored credit structures depending on specific needs. This type of flexible financing product may be especially attractive to independent producers, distributors, and IP owners, who can often be shut out from more traditional financing sources.

Alphonse Lordo, previously Managing Director and sector head for entertainment at Truist Securities, has been hired to lead the new unit.

“The team has deep industry relationships and expertise in the film, TV, and music sectors, and because of this can originate proprietary deal flow," said Lordo in an interview with Variety. "From a production standpoint, we believe there is a fundamental lack of capital for companies in the entertainment sectors and limited competition for private credit on deal sizes under $100 million. We aim to fill that void and provide flexible credit structures in various forms, such as 1st lien, 2nd lien, mezzanine, and structured financings.”

CPC has already completed its first deal, providing a debt financing package to Media Capital Technologies in support of its film slate transaction with Lionsgate.