Round Hill Music Royalty Fund Limited has acquired the master royalty income of Dennis Elliott, the original drummer of the rock group Foreigner.
The catalog comprises 71 original recordings spanning the first seven Foreigner studio albums, which feature numerous hits including I Want to Know What Love Is, Waiting For A Girl Like You, Juke Box Hero, Cold As Ice, Urgent and Feels Like The First Time.
Foreigner has sold more than 80 million records worldwide, including 37.5 million in the US.
Round Hill’s acquisition comprises 100% of Dennis Elliott’s master royalty income in the catalog.
In a press release announcing the acquisition, RHM says that the catalog “has significant exposure” to streaming, comprising 84% of revenue mix over the 2018-2020 calendar years with the balance being comprised of 6% Download, 3% Physical and 7% “Other”.
The catalog is also “diversified by geography”, according to RHM, with 36% of revenue generated in countries outside of the US.
Meanwhile, the Top 3 songs in the catalog comprise 27% of total revenue, the Top 5 Songs comprise 40% and the Top 10 Songs account for 59% of revenue.
The top songs ranked by revenue (based on the catalog’s royalty statement in the calendar years 2018-2020) are: I Want to Know What Love Is (1999 Remaster); I Want to Know What Love Is; Waiting For A Girl Like You; Juke Box Hero; I Want to Know What Love Is (2008 Remaster); Cold As Ice and Hot Blooded.
Round Hill did not disclose financial details on the acquisition. However, on completion of the July investment of proceeds from the C Share fundraise of $86.5m, Round Hill has said it will make further financial disclosure on the acquisitions.
“The acquisition further demonstrates the Investment Manager’s ability to identify songs with a proven ability to produce long-term.”
Trevor Bowen, Round Hill Music Royalty Fund
Trevor Bowen, Chair of Round Hill Music Royalty Fund, said: “The Board is pleased to announce another high-quality acquisition from Round Hill’s pipeline of copyrights.
“The catalog comprises classic tracks from the globally renowned rock group Foreigner.
“The acquisition further demonstrates the Investment Manager’s ability to identify songs with a proven ability to produce long-term, steady royalty revenues over the decades, while acquiring catalogs at attractive valuations.”
“The acquisition of Dennis Elliott’s catalog provides increased diversification in terms of genre, vintage and income type.”
Josh Gruss, Round Hill
Josh Gruss, Chairman and CEO of Round Hill, the Company’s investment manager, added: “We are really pleased to have acquired such an excellent catalog for the benefit of RHM’s shareholders.
“The acquisition of Dennis Elliott’s catalog provides increased diversification in terms of genre, vintage and income type.
“The Round Hill team feels incredibly fortunate to welcome his catalog to the Company’s portfolio.”
“I am very pleased I have found the right home for all my catalog.”
Dennis Elliott said: “I am very pleased I have found the right home for all my catalog. I am grateful to Josh Gruss, Robin Godfrey Cass in the UK, and especially Marvin Katz, my attorney, and Jerry Greenberg, for making this happen.”Music Business Worldwide