Two-Sides of Copyright Finance: Sound Royalties & Kobalt
Sound Royalties unearths millions in undistributed royalties while Kobalt launches fund to invest in music copyright
While Sound Royalties reportedly unearthing nearly $14 million in earned but undistributed royalties, Kobalt announced the launch its second managed fund to invest in music copyright.
Music-focused finance firm Sound Royalties has unearthed nearly $14 million in earned but undistributed royalties owed to roughly 330 music industry professionals. These royalties stem from a variety of sources, including performance royalties, songwriter and producer royalties, and music streaming royalties.
Sound Royalties initially came across the issue of undistributed royalties in its research for existing customers to help them claim their rightful overdue funds. With a list that includes household names like Mariah Carey, Pharrell Williams, Joe Perry, Randy Jackson and John Carter-Cash, the company quickly realized the pervasiveness of the problem industry-wide, and is now actively engaged in helping all creatives recover any such monies owed to them.
In the meantime, independent music services company Kobalt announced its second managed fund through its subsidiary Kobalt Capital, with a capacity of $600 million through $345 million of equity commitments plus debt. The second fund comes on the heels of the Kobalt Capital's first music royalties fund that launched in 2011 and spent over $350 million on music copyright. Kobalt Music Publishing enhances the value of the catalogs within the fund through Kobalt's global technology platform and creative services.
Johan Ahlström, CEO of Kobalt Capital Ltd., further said, "Having crossed six years of activity in the first fund we have made over 100 investments and delivered attractive returns to our investors. With the backing of prominent institutional investors, it validates our strategy and outlook for a robust music industry that is trending upward."