Kobalt Capital Ltd. announced Monday that it has closed its second managed fund to invest in music copyright, with a capacity of $600 million through $345 million of equity commitments plus debt. The investment fund is being led by UK pension fund, RPMI Railpen, along with other institutional invesors.
The second fund comes on the heels of the Kobalt Capital’s first music royalties fund, which launched in 2011 and spent over $350 million on music copyright.
KCL, a subsidiary of Kobalt, is a regulated investment advisor of two music royalty funds owned by institutional and private investors. Kobalt Music Publishing enhances the value of the catalogs within the fund.
The Sweden-based music-rights and publishing company represents Paul McCartney (pictured), Kelly Clarkson, Dave Grohl, Dr. Luke, The Chainsmokers, the Miles Davis estate and many others,
“From day one, Kobalt’s position has been that we don’t own copyright because it creates a conflict of interest with our clients. I’m proud to say that we’ve shifted over $3 billion dollars in asset value back to all of our clients on our platform with this no ownership model,” said Willard Ahdritz, Founder & CEO of Kobalt and CIO of Kobalt Capital Ltd. “When our clients do want to capitalize on the increased value, which Kobalt has created, this managed fund with institutional investors gives them an option to sell their copyright and still stay with Kobalt.”
Johan Ahlström, CEO of Kobalt Capital Ltd., further added, “Having crossed six years of activity in the first fund we have made over 100 investments and delivered attractive returns to our investors. With the backing of prominent institutional investors, it validates our strategy and outlook for a robust music industry that is trending upward.”