Round Hill’s new royalty fund (Round Hill Music Royalty Fund Ltd) has announced it expects to float on the London Stock Exchange this Friday (November 13).
The company has also announced that the fund has successfully raised gross proceeds of $282m ahead of the flotation, following applications for the issue of 282m Ordinary Shares at a price of US $1.00 each.
The $282m figure is $93m smaller than the $375m raise that Round Hill targeted last month in the announcement of the intention to float its new fund.
The $375m target was also based on the prospective issue of shares worth $1.00 each.
New York-based Round Hill Music LP will manage the investments of the new fund.
Round Hill Music LP recently confirmed to MBW that its intention was to spend the new fund’s targeted $375m raise to acquire a catalog of 120,000 songs owned by an existing fund (‘Fund One’) that Round Hill itself launched in the US in 2012.
That catalog was recently independently valued at $363m, and contains songs made famous by the Beatles, Celine Dion, Louis Armstrong and the Rolling Stones.
Obviously enough, the $282m raise confirmed today (November 11) falls short of this $363m price-tag.
Round Hill’s fund told its investors today that it “will actively progress and update on our intention to purchase the identified portfolio… as soon as practical”.
Commenting on the IPO, Trevor Bowen, Chair of Round Hill Music Royalty Fund Ltd said: “I am delighted to announce the successful IPO of Round Hill Music Royalty Fund Ltd. When considered against the global turbulence prevalent during the IPO process due to Covid-19, this achievement clearly demonstrates a strong investor appetite for both the music royalty asset class, the performance of which is highly uncorrelated to movements in the global economy, and the recognised expertise of the Round Hill team as an investment manager in this sector.
“On behalf of the Board I welcome our new shareholders and thank them for their support, and we look forward to updating you all on the progress of Round Hill and their team, as we together develop the Company as a listed entity.
“The Company has an identified portfolio of exceptional songs and catalogues including classic tracks from some of the world’s best-known artists that are already extremely familiar to the Investment Manager. We will actively progress and update on our intention to purchase the identified portfolio for the Company as soon as practical.”
“This marks the next stage in Round Hill’s development in London, a market with sophisticated investors that understand music royalties and the potential from this asset class.”
Josh Gruss, Round Hill
Josh Gruss, CEO of Round Hill commented: “All of us at Round Hill are very pleased with and encouraged by the strong level of support for the IPO of Round Hill Music Royalty Fund Ltd.
“This marks the next stage in Round Hill’s development in London, a market with sophisticated investors that understand music royalties and the potential from this asset class. We look forward to working closely with the Board in maximising returns for new investors.”
Of the 282m shares issued in the new funs, 272.35m were issued under a placing while 9.65m were issued under an offer for subscription.
All applications were met in full.
Round Hill Music Royalty Fund Ltd has been incorporated in Guernsey.Music Business Worldwide