12/05/2024: High-ROI Music Royalties Investment

The Opportunity: We’re raising $5 million to capitalize on a lucrative opportunity in the music royalties sector. This fund is designed to deliver stable, predictable income with impressive upside potential.

Target Returns:

  • Annualized Distributions: 7%-10%, paid semi-annually
  • Multiple on Invested Capital (MOIC): 1.5x-2.5x (full cycle)
  • Target IRR: 17-19%
  • Term: 5-7 years

Acquisition Approach:

  • Sourcing exclusive, off-market music catalogs at attractive 4x-10x revenue multiples.
  • Targeting seasoned catalogs with reliable, predictable income streams.

Portfolio Diversification:

  • Investing across genres (pop, hip-hop, Latin, Christian, and more) and revenue streams to ensure stability and resilience.

Value Creation:

  • Aggregating music catalogs to sell at premium 15x-20x multiples to institutional buyers like Sony.

Performance Highlights:

Track Record:

  • Over $130 million in closed deals.
  • More than 3,000 tracks, including 75+ RIAA-certified songs.
  • Successful exits with valuation multiples of 16x-18x.

Pipeline:

  • Current opportunities valued at $190 million, spanning various genres.

Risk Mitigation:

  • Strong industry partnerships with players like Sony.
  • Long-term royalty rights ensure income stability.
  • Proprietary analytics and third-party valuations minimize acquisition risks.

— Craig