The music industry isn’t short on influential figures arguing for artists and songwriters to retain their rights.
Now, a new London-based music finance company called Music Credit Fund (MCF) has launched with deep pockets – and a mission to offer artists, songwriters and other music rightsholders an alternative to selling off (or giving away) their copyrights.
MCF has been launched by Jack MacDonald, MD of Alvarium Investments’ Merchant Banking and Media Finance teams, and the former Head of Music and Entertainment at 23 Capital.
MCF says that it will offer long-term and “competitively priced” loans to music rightsholders, secured solely against intellectual property assets and/or future income streams across all music industry sectors.
With a $2 million minimum borrowing threshold, MCF offers 5-10 year loans at what it says are “competitive interest rates” with no personal guarantees.
MCF has appointed Gravis Capital Management Limited (Gravis) as its investment fund manager.
Gravis, which is authorised and regulated in the UK by the Financial Conduct Authority, was established in 2008 and now has circa $3 billion worth of assets under management.
In addition to offering loans to individual songwriters or artists, MCF will also offer loans to companies “for any business-related purpose such as acquisitions or business development”.
To bolster its day-one standing in the music industry, MCF launches with two advisory board members with a strong pedigree in the UK business: former Association of Independent Music (AIM) CEO and Chair Alison Wenham, and ie:music Co-Founder and Chairman Tim Clark.
“restrictive debt offerings shouldn’t be the only way to access funding in the music industry”
Jack MacDonald, Music Credit Fund
Jack MacDonald said: “Existing acquisition models and restrictive debt offerings shouldn’t be the only way to access funding in the music industry.
“The last few years has seen a growth in understanding and confidence in the space and in our view this should lead to more evolved, fairer options for creatives.
“Music Credit Fund will offer the industry the opportunity to secure finance against their intellectual property and revenue streams whilst maintaining full ownership of the businesses and copyrights that they have created.”
“I’ve always been a firm believer in artists and creators owning their own rights.”
Tim clark, i:e music
Tim Clark said: “I’ve always been a firm believer in artists and creators owning their own rights and Music Credit Fund provides an excellent option for those who are seeking to release capital from their rights but don’t want to sell outright. For that reason, the fund has my staunch support.”
“We are providing a transparent, equitable and elegant solution to companies, content owners and artists.”
Alison Wenham said: “MCF will be a competitive and global finance solution for the whole industry.
“We are providing a transparent, equitable and elegant solution to companies, content owners and artists who require finance but above all, wish to retain their rights.”Music Business Worldwide