Royalty Exchange democratized music investments with its online royalty marketplace. Now the startup has launched private syndicates, a new kind of music royalty financing plan with Cage The Elephant and Q Prime as the first clients.
Royalty Exchange calls Private Syndicates “a new type of royalty financing opportunity designed to pair larger music catalogs with accredited and institutional investors.”
Under Private Syndicates, Royalty Exchange creates Special Purpose Vehicles (SPV) designed to hold music catalogs like that of Cage The Elephant. Accredited investors can then buy shares of that entity, which grants them a proportional share of the royalty income it generates. Royalty Exchange agreed to purchase Cage The Elephant’s co-publishing catalog (which includes mechanical, public performance, sync, and print royalty streams). The catalog spans the band’s first four studio albums.
“Cage The Elephant is a band in their prime with a long career still ahead of them,” band manager Cliff Burnstein of Q Prime said in a statement. “Private Syndicates give artists a strong financial foundation for both their personal and professional future, and shows Royalty Exchange can deliver results for any artist… from a single song to multimillion dollar catalogs. Financially empowering artists is the key to creative control, which is the most important factor to achieving true longevity.”
“It was an honor to work with Cage The Elephant and their representatives in this first Private Syndicate offering,” Royalty Exchange CEO Matthew Smith added. “We expect other artists who share their vision of creative and financial freedom to follow their example.”
Royalty Exchange has now raised more than $40 million for music creators in just over two years. The company plans to introduce its next Private Syndicate offering in the weeks ahead.