Round Hill Music Royalty IPO – Round Hill Music Royalty Fund Limited has announced its intention to launch an initial public offering (IPO) on the Specialist Fund Segment of the Main Market of the London Stock Exchange, by way of a placing and offer for subscription targeting the issue of 375m ordinary shares at an issue price of US$1.00 per ordinary share.
The objective is to provide investors with an attractive level of regular and growing income and capital returns from investment primarily in high quality, music intellectual property. The company will invest in a songwriter’s copyright interest in a musical composition or song (being their writer’s share, their publisher’s share and their performance rights) together with the rights in the recording of the musical composition or song (known as the master recording rights) and any other rights and assets that the investment manager, Round Hill Music LP considers to be ancillary.
The target is for returns of 9-11% per annum and a dividend of 4.5% on the issue price.
Founded in 2010, Round Hill is a fully integrated owner and operator of music copyright properties and the seventh largest music publishing company in the US. Headquartered in New York with additional offices in Nashville, Los Angeles and London, Round Hill has an experienced management and investment team with an established reputation and extensive experience in the music and finance industries.
Round Hill has a pipeline with established steady state revenues that it intends to acquire with the IPO proceeds with 40 catalogues and over 120,000 songs. Artists whose works are included within the pipeline include: The Beatles, Celine Dion, The Rolling Stones, Louis Armstrong, Marvin Gaye, Elvis Presley, Percy Sledge, Bush, James Brown, Bonnie Tyler, The Supremes, Meat Loaf, Backstreet Boys, The Offspring, Phil Collins, George Harrison, Beck, Kid Rock, N Sync, Katy Perry, Bruno Mars, Kiss, Lady Antebellum and Carrie Underwood and many more.
The pipeline contains a number of classics including “What A Wonderful World, “She Loves You”, “From Me To You”, “Total Eclipse Of the Heart”, “When A Man Loves A Woman”, “Stop! In The Name of Love”, “You Can’t Hurry Love”, “Santa Baby”, “Just The Way You Are (Amazing)”, “Need You Now”, and many, many more.
They even included a link to a Spotify playlist in the announcement – here you go
[This is Hipgnosis Mark II but perhaps with a catalogue of older songs – 80% of the income generated by the top 25 musical compositions were in respect of compositions written between 1950 and 2010. They plan to have the money invested within three to six months. We’ll keep an eye out for the prospectus – which is expected in the next week or so. Cenkos are handling the issue which is open to all investors in the UK.]
I am interested