Investing in music royalties and media
We buy legendary music albums and media assets like stock videos to earn royalties.
18.4 %
Historical returns
4 %
Maximum allocation
Why invest in music royalties?
Increasing strength of music streaming
Streaming revenue is predictable
Streaming is bringing revenue back to music
Music streaming industry market share
How much do streaming services pay out to artists?
Featured portfolio holdings
Media investment advantages
Predictable cash flows
Streaming platforms use extensive analytics to accurately forecast viewership and cash flow.
Low correlation to general economy
Music spending has traditionally shown little connection to broader economic trends.
Higher returns through amortization
Amortization gradually reduces or spreads out the cost of an investment or expense over a certain period of time. Section 197 of the Internal Revenue Code primarily governs the amortization of intangibles like intellectual property. Investors can amortize music investments to lower taxes and increase overall returns.
Universality of music
Music knows no borders. With popular music apps operating globally, songs are readily available to audiences worldwide. This not only expands the market size but also mitigates cultural and behavioral risks.
Revenue sources
93%
Online streaming
Generate income through shared ad revenue and payments from popular online streaming platforms such as Spotify, Apple Music, and YouTube.
1%
Cover songs
Other musicians perform cover songs, which are renditions of popular artists' music, for online and public audiences.
4%
Corporate purchases
For training videos, presentations or performances in retreats and annual meetings.
2%
Advertisements
Used as background music on television, radio and online advertisements.
Featured portfolio holdings
Stock videos
23.4% IRR
Film production houses often purchase generic video clips depicting scenes like helicopters flying, bomb blasts, and cityscapes. This option is more cost-effective than organizing actual shoots.
90s Hip Hop collection
24.3% IRR
A collection of iconic 90s hip-hop songs that remain among the most streamed tracks in today's music scene. These timeless tracks continue to resonate with listeners across generations.
Whistle by Flo Rida
16.2% IRR
The multi-platinum album remains a favorite in clubs and on social media platforms. This upbeat and catchy record continues to captivate listeners, making it a must-have for any party playlist.
Collections of beats
22.8% IRR
Artists and music composers often purchase or lease beats for their songs instead of composing from scratch. This approach streamlines the creative process, providing greater flexibility in crafting their musical vision.
Invest in a diverse portfolio of alternative assets
Consumer behaviour
Music assets may change along with evolving trends and consumer preferences, yet they benefit from artist or genre loyalty. While cultural trends can change abruptly, consumer spending on music remains separate from their overall expenditures.
Risk management
Change of preference
Music trends change quickly, sometimes faster than artists can keep up. Old music often becomes popular again after a few years, as tastes in music are cyclical.
Cancel culture
Artists accused of misconduct, such as drug abuse or sexual harassment, may face consequences like being excluded from professional circles, losing sponsorships, and damaging business relationships.
Technology change
Napster disrupted music in the 2000s, causing a 15-year downturn in the recorded music industry. But with the rise of smartphones and streaming, the industry has bounced back, seeing growth once again. Technological changes can significantly affect music royalties, either positively or negatively.
Inflation risk
Music royalties typically don't react immediately to price inflation. Rates are often regulated and set for multi-year periods.