Available to accredited investors under prospectus exemptions.
Every song carries two copyrights: the composition and the recording. Each earns royalties every time the song is streamed, broadcast, performed, or licensed to film, television, gaming and advertising. The fund acquires these rights and collects the income they generate.
Royalties are earned each time a song plays, and listeners treat music subscriptions as a household staple. Streaming royalties are earned as a share of subscription and licensing revenues, so as subscription prices rise, the revenue pool the catalogue draws from rises with them. Licensing surfaces keep expanding across streaming, film and television, gaming, fitness and social platforms. The income has historically shown low correlation to equity markets, adding a differentiated stream to a portfolio.
Music copyrights are protected by copyright law. Protection runs for the life of the writer plus 70 years, often more than a century from the date a song is written. A catalogue acquired today can pay royalties for decades.
Michael McCarty of Kilometre Music Group on the case for music royalties.
Royalty income comes from listening, not trading. Its correlation to equity markets has historically been low.
Catalogues are sourced and underwritten on their earnings histories.
Streaming subscription prices and subscriber counts have both risen over the past decade.
Music copyrights are long-lived assets that can produce income for decades.
Like any investment, music royalties carry risk. Streaming trends, licensing rates and catalogue earnings can change. Risk factors are set out in the fund’s offering documents.
If catalogues are this valuable, why do artists sell them? Four reasons come up again and again.
A catalogue sale may be taxed as a capital gain, while ongoing royalties are taxed as income.
A sale converts future royalties into a fixed amount today.
Money now, rather than a decade or more of incremental payments.
A sale protects a legacy and simplifies an estate for the family.
The past two decades of global music were shaped by Canadian artists, and the rights to those songs were largely acquired abroad. The fund, managed in partnership with Kilometre Music Group and its principals Michael McCarty and Rodney Murphy, gives investors ownership in that catalogue.
Drake and Travis Scott collaborator Cardo sells publishing catalog to Kilometre Music, as fund’s total music rights spend nears USD $150m
Canadian Music Fund Aiming To Spend $200M Launches, Led By Michael McCarty
Canadian music investment firm buys publishing rights from Drake producer Murda Beatz
The fund is offered on a private placement basis under available prospectus exemptions, to investors who meet applicable eligibility requirements, including accredited investor criteria. Offering documents are provided to qualified investors.
Geoff Spidle, President, Private Client Group.
gspidle@barometercapital.ca
416-306-0042
This page is provided for information only. It is not an offer to sell or a solicitation of an offer to buy securities. Units of the Barometer Global Music Royalty Fund are available only to qualified investors under prospectus exemptions. Third-party projections are estimates and may not be realized. Details of the fund, including risk factors and fees, are contained in its offering documents.
The fund presentation and most recent quarterly report are available below.
