London bridged by funds

Producer finds Groundswell of financing

By CHRIS GARDNER

London

Producer Michael London has partnered with two new equity-based film funds to launch Groundswell Prods. The company, based in Beverly Hills, is an indie financing and production shingle that will make five pics per year under $20 million range.

Groundswell launches with two projects lined up to start production this summer: "The Mysteries of Pittsburgh," to be directed by Rawson Thurber based on Michael Chabon's debut novel; and the espionage thriller "Trust," to be directed by Neil LaBute based on Robert Edward's script, set in Los Angeles at the height of the Cold War.

Filmmakers are finalizing casting, with deals expected to be announced shortly.

Groundswell launches with an initial capitalization of $55 million and is in the midst of additional fund-raising with a target of $100 million over the next six months courtesy of Beverly Hills-based Lexington Film Funding and New York-based Crescendo Independent Film Fund.

Prior to the launch of Groundswell, London and his Michael London Prods. had a first-look deal with Paramount Pictures. However, with the deal for Ground-swell, London had to part ways with the studio under the terms of the previous pact. But he still will retain a first-look deal with Par on projects budgeted north of $20 million.

London, who will serve as the CEO of Groundswell, said he has been in conversations to construct such a company for a year and a half.

Now that it's up and running, he plans to add staff to the shingle -- a total of 10-12 employees, including a soon-to-be-announced key creative hire. That post will likely be a prexy of production or similar-level position.

Groundswell's business strategy will be a mix of foreign pre-sales for projects with established stars or pure equity investments in filmmaker-driven projects. The company's slate will mix films from established directors and emerging talent alongside comedies and genre films.

London said with Groundswell he will be looking for projects from outside producers as well as shepherding a few of his personal projects as well.

"I'm excited to bring the experience and the personal passion of a producer to a financing company," he told Daily Variety. "There are obvi-ously many indie financing options out there, but not a lot of companies where the creative decisions and the greenlight decisions are made by a filmmaker. We're going to be an exciting place to work, and we plan on making Groundswell the first stop for top talent and top projects that can be made for a reasonable price."

Deal to create Groundswell was pushed along by CAA, which introduced its client London to another client, Lexington.

"The indie marketplace is attracting a lot of outside investors right now. These quality smaller movies have a lot of traction at the box office, and they also carry a lot of value in terms of ancillary markets," he said. "I was fortunate enough to find investors who believe in the indie business model but who also believe in keeping creative freedom with the filmmakers."

London is perhaps best known for his producing effort on Alexander Payne's "Sideways." The 2004 Fox Searchlight release cost $17 million and grossed $110 million. His most recent release was the holiday dramedy "The Family Stone" for Fox 2000.

His other credits include Catherine Hardwicke's "Thirteen" for Searchlight, Vadim Perelman's "House of Sand and Fog" for DreamWorks and Neil Burger's "The Illusionist," which premiered at the recent Sundance Film Festival.