A music finance company aimed at helping artists and content owners to raise funding while retaining the rights to their music or intellectual property has launched with two high-profile industry executives forming its advisory board.
Music Credit Fund has appointed former Association of Independent Music (AIM) CEO and chair Alison Wenham and IE:Music co-founder and chairman Tim Clark as advisory board members with responsibility for music industry relations. Both have been longstanding advocates of improving access to finance options for rights holders while retaining control over rights wherever possible.
London-based Music Credit Fund (MCF) will offer long-term, competitively priced loans secured solely against intellectual property assets and/or future income streams across all music industry sectors. With a $2m minimum borrowing threshold, MCF will allow any holder of music rights the opportunity to realise value via a lump sum loan whilst retaining control, via five to 10-year loans at competitive interest rates with no personal guarantees.
For individual songwriters or artists, MCF will provide an alternative to those who prefer to retain ownership of their personal creative output. For companies, MCF funds can be used for any business-related purpose such as acquisitions or business development. For owner-managed companies, it can provide an opportunity to raise capital whilst retaining control and independence.
MCF launches at a time when songwriters have increasing options to sell their publishing shares to investors, such as Hipgnosis. Other companies offer finance options for artists, including Ditto Music and payment platform Paperchain.
Launched by Jack MacDonald, MD of Alvarium Investments, MCF has appointed Gravis Capital Management Limited (Gravis) as its investment fund manager. Gravis was established in 2008 and now has around $3bn of assets under management. Gravis is authorised and regulated in the UK by the Financial Conduct Authority
MCF will be a competitive and global finance solution for the whole industry
Tim Clark said: “I’ve always been a firm believer in artists/creators owning their own rights and Music Credit Fund provides an excellent option for those who are seeking to release capital from their rights but don’t want to sell outright. For that reason, the fund has my staunch support.”
Alison Wenham said: “MCF will be a competitive and global finance solution for the whole industry. We are providing a transparent, equitable and elegant solution to companies, content owners and artists who require finance but above all, wish to retain their rights.”
Jack MacDonald said: “Existing acquisition models and restrictive debt offerings shouldn’t be the only way to access funding in the music industry. The last few years has seen a growth in understanding and confidence in the space and in our view this should lead to more evolved, fairer options for creatives. Music Credit Fund will offer the industry the opportunity to secure finance against their intellectual property and revenue streams whilst maintaining full ownership of the businesses and copyrights that they have created.
“In Alison and Tim we have two highly respected industry figures who have helped shape the proposition and it is a privilege to be working closely with them on such a ground-breaking new project.”