YFSOL Classic Opportunity:
MUSIC ROYALTIES

Every time a hit song gets played, someone gets paid. Would you like some of that?

YFSOL’s Music Royalties investment opportunity does just that. You can have recurring income from hit songs by:

Rihanna, Shawn Mendes, Jay-Z, Justin Bieber, Madonna, Katy Perry, Britney Spears, Santana, Eurythmics, Maria Carey, Christina Aguilera, Whitney Houston, Justin Timberlake, Ed Sheeran, One Direction…

We could go on. 

BEYONCÉ. Her too.

These artists have all released huge hit songs written by some of the world’s biggest songwriters. You may not know the names of the songwriters, but you have definitely heard their songs. Over and over again. And each time, someone gets paid for owning the songwriting copyright. THAT COULD BE YOU.

We’re giving you an easy way to invest in that copyright: when their songs are played, you get paid.

Like when someone clicks on this video
(you could be getting a share of the royalties):

How YOU Can Benefit from Songwriting Royalties

This YFSOL Classic Opportunity gives you the chance to invest in the Hipgnosis Songs Fund.

Hipgnosis was formed with the sole purpose of allowing people to invest in songs and their associated intellectual property. The company was co-founded by Merck Mercuriadis (some name, right?), who used to manage acts like Elton John, Guns ‘n’ Roses, Iron Maiden and Beyoncé.

His business partners are songwriters responsible for some of the biggest songs ever recorded. We’re not kidding: Beyoncé’s Single Ladies & Rihanna’s Umbrella, among others. (Those two songs have had over a billion views on YouTube alone—each play generated a royalty payment.)

The legendary music producer and musician Nile Rodgers is on the board. Doesn’t ring a bell? Try this: Le Freak.

Hipgnosis buys the songwriting copyright from songwriters and receives their share of:

  • mechanical royalties (eg. when a new CD is made with the song on it.)
  • performance royalties (eg. when a song is performed live or streamed.)
  • synchronisation fees (eg. when a song is used in a movie.)

Why would a songwriter sell their copyright? Because it allows them to cash in on the future earnings of their work while they are still alive. What’s the point of writing the biggest hit ever if you don’t get the maximum benefit of it during your lifetime?

Not only does this investment opportunity give you a stake in Hipgnosis, you also receive a share of the music royalty payments generated by the Hipgnosis catalogue on a quarterly basis.

Our take

Thanks to the proliferation of online streaming services, music royalty payments have grown rapidly in recent years, having spent a long time in the doldrums. The ability to stream music legally from mobile devices through services like Spotify, Deezer, Apple Music and so on has played a significant role, according to Investment Week.

Investing in music royalties is a great way to diversify your investment portfolio. And, importantly in these volatile days, the latest corporate drama might upset the stock markets, but it’ll have no impact on music royalties. So they offer a measure of stability too.

The risks: As with all types of investment, the value of your investment can go down as well as up. Hipgnosis is a young company and only listed on the London Stock Exchange a few years ago. Truth be told, it’s early days. But look ahead a few years and we see potential.

Summary: For the right kind of investor and with a long-term view, this could be a fun and ultimately solid investment. The regular royalty payments are a big plus.

YFSOL Classic Opportunity: Music Royalties

Your money will be invested in Hipgnosis Songs Fund Limited, a Guernsey-registered investment company that specialises in the acquisition of songwriting intellectual property.

The minimum investment is GBP £10,000 for existing Polaris clients and GBP £25,000 for new ones. New clients can spread their initial GBP £25,000 over any investment opportunity we have available at the time, as long as £10,000 goes into Music Royalties. There is no upper limit.

You’ll be entitled to a share of the royalties generated by the Hipgnosis catalogue and you’ll receive a dividend paid into your Polaris account on a quarterly basis.

To participate, you will need to set up a YFSOL Polaris account if you don’t already have one. Don’t worry. It’s simple and you only need to do it once. We’ll help you.

YCO Music Royalties in a nutshell

Structure:

You will be investing in shares in Hipgnosis through YFSOL’s Polaris platform.

Valuations:


Valuations are completely transparent and are done daily by the London Stock Exchange. You can check prices at any time.

Redemptions:


At will. You hold the investment directly through our Polaris platform.

Dividends:


Hipgnosis pays out dividends on a quarterly basis.

Base Currency:


GBP Pounds Sterling

Minimum Investment:


GBP £10,000
 for existing Polaris clients; GBP £25,000 for new Polaris investors. New clients can spread their initial GBP £25,000 over any investment opportunity we have available at the time, as long as £10,000 goes into Music Royalties. There is no upper limit.

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