All I want for Christmas is music: Royalties to play bigger part in alternative asset space

Investors confident music funds will hit right notes

David Brenchley
clock • 6 min read

Music royalties are expected to become an ever-increasing part of fund buyers' alternative asset exposure, as governance and disclosure in the space improves and more access vehicles launch.

The asset class came to prominence with the 1997 launch of 'Bowie bonds' sparking issuance of fixed income securities paying coupons of about 8% backed by royalties from artists including David Bowie, James Brown and The Isley Brothers. Over the past decade, investment houses, including Round Hill Capital, have been offering private market funds investing directly in music royalties to clients. These offerings put music royalties on the radar of fund buyers across the UK. However, until the 2018 IPO of Hipgnosis Songs Fund, they had been unable to access the asset class. Hipgnosis,...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Alternatives

Trustpilot