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Could an investment fund evolve into a major publisher?

The dealmaking around music rights continues, with this morning’s news pile including Tempo Music acquiring a majority stake in some of Korn’s recordings and compositions, and Round Hill Music striking a long-term administration deal for the neighbouring rights income of some members of Supertramp. What’s the company’s cut? Well, they’ll be given a little bit, we suspect.

If you’re thinking about the bigger picture of publishing rights, and what the entry into the market of large investment companies might mean for the established major publishers, we recommend giving this article by Dan Fowler a read. He tackles the question, taking the example of Hipgnosis Songs Fund, which has invested $2bn in catalogue and is generating revenues that put it on a par with independent publishers.

“Using the 18-20x rule, to buy-in a catalogue at the level of Warner Chappell, a fund would need to spend in the region of $12bn on acquisitions. Four times what has been committed by a combination of Hipgnosis and Blackstone so far. Significant, though not outside of the realms of possibility,” writes Fowler.

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Round Hill Music Royalty Fund raises $282m from share issue

The arms race in catalogue acquisition continues. Round Hill has announced that its Round Hill Music Royalty Fund has raised another $282m from a share issue.

The money won’t be burning a hole in its wallet for long, we sense.

“The Company has an identified portfolio of exceptional songs and catalogues including classic tracks from some of the world’s best-known artists that are already extremely familiar to the Investment Manager. We will actively progress and update on our intention to purchase the identified portfolio for the Company as soon as practical,” said chair Trevor Bowen in a statement this morning.

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Round Hill Music confirms plans for $375m Royalty Fund IPO

The rumours were right: music publisher Round Hill Music is planning to take its songs fund public. The Round Hill Music Royalty Fund has announced plans to raise $375m through an IPO on the London Stock Exchange. You can read its announcement here.

The company says it has already identified more than 40 catalogues containing more than 120k songs that it plans to buy with the proceeds from the IPO.

The lineup of artists whose work is included in those catalogues is long and starry: The Beatles, Celine Dion, the Rolling Stones, Louis Armstrong, Marvin Gaye, Elvis Presley and… well, you get the picture.