Round Hill Music raises largest music royalty fund to date
Round Hill Music Royalty Partners (Round Hill Music), a private equity firm dedicated to investing in music copyright, has closed its third private fund, Round Hill Music Royalty Fund III (Fund III) with total equity commitments of USD291 million.
Fund III is Round Hill Music’s largest fund to date.
In line with Round Hill Music’s investment strategy for Funds I and II, Fund III will invest in royalty-producing intellectual property related to music by acquiring high quality rights from songwriters, artists and other third-party rights holders. The Fund targets blue chip and classic songs that have gained significant popularity, earning a steady level of royalties across a variety of media streams and diversified by vintage and genre. To date, Fund III has deployed more than $200 million on notable deals, adding hit songs performed by The Goo Goo Dolls, Matchbox Twenty, Rob Thomas, Black Sabbath, The Dropkick Murphy’s, Daughtry, Craig David, Kiss, Limp Bizkit, Blues Traveler, Bruno Mars, Skid Row, Bachman Turner Overdrive, Night Ranger and more. Since inception, Round Hill Music has acquired rights to over 128,000 songs.
Round Hill Music received strong support from its existing investor base of leading endowments, foundations, and pension funds, while also adding select new US institutional investors.
Josh Gruss, Chief Executive Officer of Round Hill Music, saisaysd: “We are grateful for the continued confidence and strong support we received for Fund III from a diverse group of new and existing high caliber investors. Round Hill Music has continued to distinguish itself as a leader in the music royalty space by acquiring blue chip songs with enduring long-term popularity. We are pleased to serve as the partner of choice for songwriters and other third parties, attracting a talented team with a deep knowledge of the investment and music industries.
“Against the backdrop of the global pandemic and the structural shift of streaming and synchronisation, the music royalty asset class has gathered pace and continues to show strong growth, while also proving resilient in difficult economic environments,” Gruss added. “As experienced investors in music rights, our objective continues to be to provide investors with regular and growing income and capital returns from investment primarily in high quality, music intellectual property.”
Neil Gillis, Round Hill Music’s President, adds: “We were able to raise our largest fund to date amid the Covid-19 pandemic due to continuing favourable market conditions, including improved copyright law, a surge in streaming subscription services, and increased synchronisation opportunities. For more than a decade, Round Hill Music has generated strong risk-adjusted returns for our investors and we look forward to continued innovation as we seek to capitalise on great tailwinds for our business.”
Round Hill Music’s second fund, which launched in December 2017 and raised over USD260 million in equity commitments, along with its first fund launched in July 2014 which raised USD202 million, have deployed over USD650 million on equity in music rights, including iconic songs like “What A Wonderful World” and “Total Eclipse Of The Heart” which are deeply engrained in popular TV shows and movies, as well as commercials for the world’s most recognisable companies. Round Hill Music has acquired over 80 music catalogues and has generated over USD175 million in royalty income since inception and has within its overall portfolio songs recorded by some of the world’s greatest artists including James Brown, Louis Armstrong, The Offspring, Carrie Underwood, The Beatles, and Backstreet Boys, among other notable names.
FocusPoint served as the exclusive placement agent for North America. FocusPoint has successfully supported Round Hill’s private fund capital raising efforts since Round Hill Music Royalty Fund I.