15 October, 2018Print
Dire Straits Investment Draws Overwhelming Demand From Royalty Exchange's Large Network of InvestorsInvestors flocking to music royalties as an alternative investment.
DENVER—Royalty Exchange, the online marketplace turning music royalties into investable assets, today completed a private syndicate offer for the catalog of British rock legends Dire Straits, with initial demand outstripping supply by over 85%.
Royalty Exchange made 925 units of the private syndicate available to accredited and institutional investors, but received requests for 1,719 units. Put into dollar terms, investors requested $6.3 million worth of shares for only $3.4 million available. All came from members of Royalty Exchange’s large network of investors.
“The demand for the Dire Straits catalog illustrates just how well music royalties satisfy investors’ appetite for a meaningful return in today’s investing landscape,” said Royalty Exchange CEO Matthew Smith. “On Royalty Exchange, we aggregate both supply and demand to the benefit of music creators and investors.”
Royalty Exchange’s private syndicates target music catalogs with the potential to generate double-digit returns. The Dire Straits private syndicate, for instance, featured forecasted annualized returns of 12-15%.
These forecasts are based on a rebounding music industry, which with 14% growth over the last two years is in the early stages of a bull market following a 15-year decline. Driving that growth is a surge in paid subscriptions to streaming music services, which grew 45% last year.
Royalty Exchange is one of the only ways investors can participate in that growth, and do so by directly buying an interest in catalogs that disproportionately outperform the market — like Dire Straits.
This demand gives music creators and rightsholders unprecedented control and flexibility over how they leverage their royalties compared to traditional music industry options.
“There’s an entire generation of music industry veterans like myself and my colleagues who are looking for smart ways to organize our finances,” said Dire Straits former manager Ed Bicknell, who sold his manager’s commission through the private syndicate. “For many of us, the royalties we earn are our most important asset. So it’s important that we treat them with care, not just for ourselves as individuals, but for our families.”
Royalty Exchange has now raised over $47 million for music creators in just over two years through online auctions, private syndicates, and other royalty transactions.
About Royalty Exchange
Royalty Exchange helps creators raise money by connecting them with private investors. We operate the world’s largest online marketplace for royalties. Creators love us because our transparent marketplace gets them fair market value for their work. Investors love us because we provide access to uncorrelated, income-generating opportunities. And our commitment to transparency and honesty ensures value for all. Follow us on Twitter and Facebook.