Music Industry News Network [11-08-2017]
Kobalt Capital Closes Second Music Royalties Fund With $600 Million In Investment Capacity
Kobalt Capital Ltd. (KCL), announced it has closed its second managed fund to invest in music copyright, with a capacity of $600 million through $345 million of equity commitments plus debt. The investment fund is being led by UK pension fund, RPMI Railpen (Railpen), along with other institutional investors.
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.
KCL, a subsidiary of Kobalt, is a Financial Conduct Authority (FCA) regulated investment advisor of two music royalty funds owned by institutional and private investors. Kobalt Music Publishing enhances the value of the catalogs within the fund through Kobalt's global technology platform and creative services, to the benefit of all parties.
"From day one, Kobalt's position has been that we don't own copyright because it creates a conflict of interest with our clients. I'm proud to say that we've shifted over three billion dollars in asset value back to all of our clients on our platform with this no ownership model," said Willard Ahdritz, Founder & CEO of Kobalt and CIO of Kobalt Capital Ltd. "When our clients do want to capitalize on the increased value, which Kobalt has created, this managed fund with institutional investors gives them an option to sell their copyright and still stay with Kobalt - it's been a very successful model."
"It's pretty amazing to see the growth in value of my catalog over the past eight years," said multi-platinum selling songwriter, Lindy Robbins. "I think Willard and Kobalt's tech platform is one of the main reasons my copyright was able to amass that value. So when I recently wanted to sell a portion of my catalog, I didn't want to leave Kobalt."
Johan Ahlström, CEO of Kobalt Capital Ltd., further added, "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."
Craig Heron, Deputy Investment Director at Railpen, said, "This opportunity provides us with just the type of long-term returns that we need to help us meet our mission statement to pay members' pensions securely, affordably and sustainably."
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