Why don't more I-banks finance Hollywood films?

onebuck's picture
Rank: Senior Baboon | 248

So I was reading this article the other day about how certain Hollywood films are financed by international investors.

http://www.slate.com/id/2117309/
And started wondering to myself. Why don't any Wall Street firms have divisions that provide the financing for certain Hollywood films?

I mean there have been some rare instance where that has happened (e.g. ML helping finance Iron Man) and ML probably made a ton of money based on how the movie is doing at the box office.

Obviously there's a lot of due diligence that would have to be conducted on the film, but considering the investor gets to purchase the film and the studio basically pays the investor a lease and some sort of repurchase agreement if the movie becomes successful, I don't see why more investment banks look to expand into that space.