SandDollar Capital, a private equity group created by the founders of a hedge fund research firm, has formed a strategic alliance with Barbarian Films, an indie film investment fund. SandDollar, founded by Charles Gradante and Lee Hennessee, principals of The Hennessee Group, structures financing from professional investors and institutional sources on behalf of private equity funds. It said its alliance with Barbarian would be a multi-year relationship, which will include Barbarian's future funds and investment vehicles. The New York-based company structures financing for low budget, high quality films through a combination of equity, debt, foreign sales and regional tax credits and rebates. Barbarian says that it mitigates downside risk by considering film investments budgeted under $10 million, while foreign market sales are estimated at more than 80 per cent of the film's total budget. Barbarian recently announced that its first film investments include Powder Blue, featuring Forrest Whitaker, Jessica Biel and Ray Liotta. Mr Gradante said: “We have seen consistent interest from individual investors, funds and institutions for non-correlated alternative investments. We see film investment as a logical solution however for some time we were unable to find the right business model that would offer engaging returns while effectively managing the downside risks typically associated with film investment.”