New fund offers more than $ 2 million in loans to artists and music rights holders
The music industry has no shortage of influential figures who advocate for artists and songwriters to retain their rights.
This month alone, UnitedMasters founder Steve Stoute and Sound Royalties founder and CEO Alex Heiche shared their views on this topic with MBW.
Now a new London-based music finance company called Music Credit Fund (MCF) has been launched with deep pockets – and a mission to deliver to artists, songwriters and other music rights holders an alternative to the sale (or transfer) of their copyright.
MCF was started by Jack MacDonald, managing director of the Merchant Banking and Media Finance teams at Alvarium Investments, and the former head of music and entertainment at 23 Capital.
MCF says it will provide long-term, “competitively priced” loans to music rights holders, secured only against intellectual property assets and / or future income streams across all sectors of the music industry. music.
With a minimum borrowing threshold of $ 2 million, MCF offers 5 to 10 year loans at what it says are “competitive interest rates” without any personal collateral.
MCF has appointed Gravis Capital Management Limited (Gravis) as manager of its investment fund.
Gravis, which is authorized and regulated in the UK by the Financial Conduct Authority, was established in 2008 and now has around $ 3 billion in assets under management.
In addition to offering loans to songwriters or individual artists, MCF will also provide loans to businesses “for commercial purposes such as acquisitions or business development”.
To bolster its first-day reputation in the music industry, MCF is launching with two advisory board members with a strong pedigree in the UK industry: the former CEO and President of the Association of Independent Music (AIM), Alison Wenham, and namely: Music Co-Founder and President Tim Clark.
“Offers of restrictive debt should not be the only way to access financing in the music industry”
Jack MacDonald, Music Credit Fund
Jack MacDonald said: “Existing acquisition models and restrictive debt offerings should not be the only way to access financing in the music industry.
“The last few years have seen a growth in understanding and confidence in the space and, in our opinion, this should lead to more evolved and fairer options for creatives.
“Music Credit Fund will provide the industry with the ability to secure funding against its intellectual property and income streams while retaining full ownership of the companies and the copyrights they have created.”
“I have always been a firm believer that artists and creators have their own rights.”
Tim Clark, I: E music
Tim Clark said: “I have always been a firm believer that artists and creators own their own rights and Music Credit Fund offers a great option for those looking to free up their rights but don’t want to sell outright. For this reason, the fund enjoys my unwavering support. “
“We provide a transparent, fair and elegant solution for businesses, content owners and artists.”
Alison Wenham said, “MCF will be a competitive and global financing solution for the entire industry.
“We provide a transparent, fair and elegant solution for businesses, content owners and artists who need funding but who want to retain their rights above all else.”Music company in the world