Music Rights Investments | Rationale and considerations

Hi everyone,

I’m keen to understand the investment rationale of investing in music rights/catalogs of artists. Over recent years, plenty of prominent artists have announced the sale of their music catalog to investors (see below)

More specifically, I’m interested in the: 

  1. Business model and profitability of music rights investments
  2. What metrics do you track, and across what channels?
  3. How do you justify a valuation, and what return you’re targeting?
  4. How do lenders look at providing debt for such an acquisition, if any?
  5. What are the primary risk considerations and mitigants, if any

Kindly invite you all to have an open, mutually beneficial discussion. Or if you’re based in Europe, keen to chat for a coffee.

 Selected transactions:

  • Bruce Springsteen Sells Music Catalog in Massive Deal ($550m est)
  • Justin Bieber ($200m est)
  • Justin Timberlake ($100m est)
  • Phil Collins/Genesis ($300m est)
4 Comments
 
Most Helpful

Here you can find a presentation by a music royalties fund (HarbourView Royalties), it should have most of the answers you're looking for. 

 

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