Relativity Media Holdings has inked a co-financing pact with Citigroup Corporate & Investment Banking to invest as much as $1.1 billion in 80-100 studio films of its own choosing.

At least one studio is close to finalizing a deal with Relativity Holdings, whereby up to $550 million would be invested in a slate of 40-50 films. A similar deal with a second studio is reportedly in the works.

Identity of the first studio -- likely Sony, although it could be Universal or Paramount -- could expected to be announced as early as today.

Relativity will use the revolving credit facility to co-finance 40-50 films at any given studio over the next five years.

Relativity Holdings, unlike the investors, will own 100% of the equity.

Another key provision: Relativity Holdings will be able to review a broad slate and select films that it wants to finance. (Relativity Holdings is a new subsid of Relativity Media.)

Relativity Media principal Ryan Kavanaugh has brokered many of the slate deals between various hedge funds and the major studios, including Virtual Studios at Warner Bros. and the Gun Hill Road funds at Sony and Universal.

In most instances, the funds don't have the option of cherry-picking films.

To date, Relativity Media has structured more than $4.22 billion in production financing for titles including "Smokin' Aces," "Catch and Release," "Talladega Nights: The Ballad of Ricky Bobby" and "Inside Man." Movies in production include remake "3:10 to Yuma" and "The Untouchables."

Kavanaugh said it is the success of Relativity's previous studio funding facilities that allowed the deal with Citigroup.

It hasn't been smooth sailing for all the hedge funds, however. Benjamin Waisbren, who managed Virtual Studios, abruptly resigned after "Poseidon" took a hard hit at the box office.