FocusPoint Announces Final Closing of Round Hill Music Closes Music Royalty Fund III at $291 Million
Further Validating Music Royalties as Its Own Asset Class
New York, NY, November, 18, 2020 – FocusPoint Private Capital Group (“FocusPoint”) is pleased to announce the final closing of Round Hill Music Royalty Fund III, L.P. (“Fund III”) at $291 million. Consistent with its predecessor funds, Fund III will focus on taking an institutional approach to investing in royalty streams generated by music copyrights.
Round Hill received strong support from its existing investor base of leading endowments, foundations, and pension funds, while also adding a small number of new institutional investors. FocusPoint served as the exclusive placement agent for North America.
“In light of the challenges we are all facing, we are thankful for the continued support of our existing limited partners and are excited to add a select group of new investors with the closing of this fund,” said Josh Gruss, Chief Executive and Founder of Round Hill Music.
“Against the backdrop of the global pandemic and the structural shift of streaming and syncing music has gathered pace and the music publishing industry continues to show strong growth, while also proving resilient in difficult economic environments,” Gruss added. “As experienced investors in music publishing, our objective continues to be to provide investors with regular and growing income and capital returns from investment primarily in high quality, music intellectual property.”
“We are grateful for the support and confidence investors, both existing and new have placed in this strategy particularly during these unprecedented times,” said David Conrod, Chief Executive of FocusPoint. “Music as its own asset class provides meaningful risk-adjusted returns producing predictable, growing, annuity-level, cash flow streams in the form of royalties which are paid quarterly. The long duration nature of the asset ensures sustainable and consistent revenue over the long term and we have also found that music rights also have a low correlation to the returns of most traditional and alternative asset classes,” he added.
FocusPoint has assisted and successfully worked with all of Round Hill’s capital raising efforts since Round Hill Music Royalty Fund I closed on $209 million in July 2014. Round Hill Music Royalty Fund II closed in December 2017 with $263 million.
Round Hill’s holdings include stakes in “What a Wonderful World” by Louis Armstrong, 20 Motown-era hits, such as “You Can’t Hurry Love” and “I Can’t Help Myself,” as well as six songs by the Beatles, including “I Saw Her Standing There.” Since January 2011, Round Hill Music deployed over $650 million, completed 78 music catalog investments, and over 75 investments in administration or co-publishing opportunities. The portfolio contains over 130,000 songs and is diversified across decade and genre and has generated over $150 million in royalty income since inception.
About Round Hill Music
Founded by Josh Gruss along with Richard Rowe and Neil Gillis, Round Hill Music is one of the largest independent music rights company in the world. Through its various divisions, Zync, BLB Royalty Administration, Round Hill Nashville, Round Hill Records, Black Hill Records and its Bosshouse Music Library, Round Hill provides a full administrative platform for songwriters and artists that delivers everything from sync licensing, song placements, music production, record label services and transparent, accurate global royalty processing and accounting. Round Hill Music has offices in New York, Nashville, Los Angeles and London. To learn more about Round Hill Music, visit our website at: https://roundhillmusic.com.
About FocusPoint Private Capital Group
FocusPoint Private Capital Group (https://www.fpcgllc.com/) was founded in 2010 by Guggenheim Partners veterans David Conrod and Robert Mortimer. Headquartered in New York, the firm is an independent capital raising and advisory firm specializing in private capital markets and is a wholly-owned affiliate of LANDC Investment LLC. The firm raises capital for private equity, credit, real estate, real assets and direct transactions in both developed and emerging markets.
FocusPoint operates as a FINRA regulated broker-dealer in the U.S. and is a member of SIPC.