Who can invest?
The great thing about this fund is that anyone can invest. There are some limitations on the size of investment based on your income, but no limitations on who can invest.
What type of offering is this?
This could be a Crowd Funding offering although we believe it will probably be an A+ offering. You can read more about the different types of offerings by Clicking Here .
What types of music catalogs will you buy?
We will look for passive catalogs, usually writer, co-publishing and/or producer shares of income-producing catalogs. While other funds focus on large expensive catalogs, our goal is to find smaller overlooked catalogs that have one, two or three good producing songs that have a great purchase price and longevity of producing strong income.
What is the difference between smaller dividends and higher payout in 5 years?
We can either have the fund payout regular dividends as a way to provide a return on investment, or we can reinvest those funds to buy additional catalogs. The return on investment by continuing to purchase new catalogs is to bundle this into a larger offering to then sell to another party where we could then cash out.
When will we get paid?
For the dividend option of the fund, every quarter and if we choose the reinvestment route when the catalog is sold.
What % of the royalties will be paid out, meaning what is the expense structure?
We will try to keep the expense structure as low as possible and are looking at a 10%-15% at most expense ratio.
Will anyone else participate in the payout or royalties that would dilute the % or royalties due to investors?
No, investors, and only investors will receive dividends on royalties collected by the fund.
What is the size of fund you are targeting?
Initially, we are targeting a $1m minimum to start but if the interest is high then we will raise a larger fund. This is why gathering data on what type of investments people are interested in is so important.
What do you mean by accredited investor?
Some types of funds are only open to investors that qualify as accredited. This means that they either have a net worth of over $1m (excluding primary residence), or have earned at least $200k in each of the last 2 years. We are in the process of deciding if we want to focus on accredited investors or if we want to initially raise $1m from many individual investors through Crowdfunding instead.
I'm interested, what do I do next?
Make sure you fill out the survey so we can get as much information on what is most important to investors. Once we get a better idea of how we want to structure the Royalty Music Fund we will reach out with next steps.
Frequently Asked Questions