Music to investors’ ears
The ColonialFirst State Global Asset Management joint venture First State Media Group is set to launch its first media fund, expected to be available to retail investors in 18 to 24 months time.
The launch of FS Media Works, expected to be available to institutional investors by the end of the year, follows First State Media’s acquisition of the music publishing assets of Wind-up Entertainment, one of the largest independently-owned and operated record labels in the United States. The deal means the group now hold the rights to top-selling international artists including Evanescence, Creed, Avril Lavigne and Kelly Clarkson.
Earlier this year, First State Media acquired the former Dreamworks publishing catalogue from Dimensional Music Publishing. The catalogue consists primarily of songs performed by artists from the 1950s to 2000.
Colonial First State Global Asset Management chief executive Warwick Negus said the launch of the new media fund was designed to cement the group’s place at “the forefront of the investment management industry when it comes to offering investors specialist, innovative and groundbreaking products”.
“Music copyright assets are very attractive to investors because they generate global income streams in the form of stable and recurring cash flows. They hold considerable long-term growth potential through the active promotion and management of the underlying musical works and income can be generated by placing the songs in videogames, movies, television commercials and radio advertisements.”
Wind-up’s music has most recently featured in movies including Daredevil, The Punisher, Fantastic Four and The Passion of the Christ.
The Wind-up deal means First State Media now holds one of the largest privately-held music publishing catalogues in the world. The group is also entitled to acquire future publishing assets from certain artists, providing the potential for further earnings growth.
First State Media managing director Steve McMellon said the group was on the lookout for further acquisitions.
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