While many finance internships promise exposure and growth, few programs actually include interns in the projects that can deliver true personal development. The Xtellus’ 2025 intern class shared three reasons why their experience this summer was different. 

1. From Capital Markets to Commodities 

Unlike traditional summer programs, where interns are assigned to just one department, Xtellus’ unique structure provides a breadth of experience to its summer intern class. With six business groups under the Xtellus Partners umbrella, interns participate in team meetings spanning venture capital, asset management, private credit, capital markets, and commodities. They collaborate on diverse project pipelines, and gain insight into how the businesses interconnect in practice.

“What I liked most about my experience at Xtellus was the variety of different projects and areas of the business I was able to work on,” shared Alyssa, a rising junior. “I wanted to gain exposure to different areas of finance and was lucky to be able to work across all these divisions.”

2. A Culture of Mentorship and Growth

Senior leaders across the firm invest personally in intern development, creating an environment that prioritizes coaching, and our interns were outspoken about how much this mattered.

“I’ve had amazing mentors throughout the summer,” explained Doug, who focused on XTS Commodities’ oil trading operations. “The senior leaders were very welcoming, patient, and willing to help me learn.”

Jack agreed. “I have experience at other investment management firms. What struck me most about Xtellus was that it doesn’t matter how senior or busy the team is, people here always make time to invest in your growth.”

Leonid Kouperschmidt, Principal at Xtellus Partners and head of the internship program, explained:

“The best internship programs are mutual investments. At Xtellus, we look for interns who bring fresh perspectives and genuine curiosity to our work. In return, we provide the mentorship, exposure, and intellectually demanding work that help shape the next generation of finance professionals.”

3. Real Projects, Real Impact

Xtellus interns don’t observe from the sidelines. They contribute to actual client engagements and business-critical projects. Doug participated directly in sales team interactions with potential clients, while Jack worked alongside Xtellus partners to help management teams of small public companies navigate capital markets opportunities.

“In a small-team setting like this, you get exposure you can’t find anywhere else,” Jack noted. “If you take the internship by the reins and own your projects, you can make a real impact.” 

Building Lasting Professional Relationships 

As Doug put it, these are more than mere connections, but rather colleagues he’s “looking forward to keeping in touch with for a very long time.” 

His advice to future interns summarizes the program well, “Don’t be afraid to ask questions about projects. It shows your interest and passion for the work, and the team is always willing to help.”

Finally, when asked to describe the program in three words, Xtellus interns chose: dynamic, engaging, and collaborative. We couldn’t have said it better ourselves.

Interested in joining Xtellus’ summer internship program? Visit our careers page to learn more about the program, and stay tuned for summer 2026 opportunities.

When most people think about investing in films, they imagine backing the next blockbuster. However, the smartest money in Hollywood isn’t betting on hits, but providing secured loans against solid collateral.

A Brief History of Hollywood Financing

The evolution of film financing reflects this shift from speculation to collateralized lending. In the industry’s early days, major studios controlled everything from production to distribution. The 1948 Supreme Court decision in United States v. Paramount Pictures forced studios to divest their theater chains, leading to the rise of independent producers and more complex financing structures. 

In the wake of the 2008 financial crisis, the rise of streaming platforms, and the post-2020 shift in media consumption habits, studios have pivoted to focus on distribution. Now, they finance only a select number of high-budget films, often through partnerships with independent producers. This transformation has opened space for institutional investors to enter the market. 

Specifically, while technology-driven platforms like Seed & Spark, Film.io, and others have played a role in expanding access to financing, the industry’s core shift towards collaboration and external financing offers an attractive private credit opportunity. While equity investors wait years hoping for profitable box office returns, lenders receive priority repayment through a carefully structured waterfall system.

The Waterfall Defined

The waterfall structure determines how money flows through a production. Lenders sit at the top of the waterfall, providing crucial short-term production loans ranging from 2-15 months with gross annual yields of 15-30%. Unlike equity investors, these lenders begin recouping their investment as soon as production meets specific milestones. 

The system works by carefully aligning funding with key production phases, beginning with script development funded by producers. As projects enter pre-production, two vital forms of collateral emerge: location-based tax rebates and pre-sold distribution rights. These assets secure the short-term loans needed for filming and post-production work, with each completed milestone unlocking new funding while simultaneously securing previous loans. 

By financing specific stages of production and securing returns when key milestones occur, private credit investments can offer more predictable, risk-adjusted returns compared to traditional equity-based approaches. 

From Setback to Success 

A recent case study highlights how careful loan structuring can power Hollywood productions while protecting investors. In 2023, Xtellus provided $3 million in mezzanine financing for a promising comedy blockbuster. This specialized funding sits behind senior lenders but ahead of equity positions in the capital structure, maintaining a claim to a portion of net profits of the film. While mezzanine deals typically hold secondary positions on collateral, and are typically secured by the unsold foreign territory rights, we successfully negotiated with the senior lender to secure first-position on domestic territory sales — an unusual advantage. The 18-month mezzanine agreement targeted a 20% annual return with a 12% guaranteed minimum, plus 5% of the film’s net profits.

The project was expected to be completed by Q3 2024, but the production faced delays of 3-6 months with theatrical release pushed to Q2 2025. Importantly, the mezzanine investment remains well-protected. Despite stretching beyond the initial agreed term, our penalty interest structure ensured we are compensated for the delay with an additional 1% accrued per month and an anticipated total gross return of 46%.

Navigating Risk and Returns

Film production lenders must assess their appetite for risk and capacity to provide operational oversight beyond simple capital deployment. Each lending product has a collateral base and risk profile related to its stage of the production process. For example, Foreign Sales Loans sit at the lower end of the risk spectrum, whereas more traditional loans like Guaranteed Asset Protection (GAP) Financing, are higher risk. 

Production complications can quickly cascade into significant financial exposure. Lenders’ success hinges on understanding the complex web of contracts and relationships that secure repayment, from completion guarantors to distribution agreements, while maintaining the flexibility to address inevitable challenges during production. 

Nonetheless, for investors seeking uncorrelated returns in today’s volatile financial markets, film finance’s waterfall structure offers a compelling combination of yield and downside protection. The key is understanding that in Hollywood, the safest place to be is at the top of the waterfall.

For more information about financing the stages of film production, view or download our white paper – Film Finance Demystified.

Or visit the LX Film Credit Fund overview.