Earn a 33% Return on an Evergreen Catalog

Invest $18,750 to receive $25,000 in royalty payments generated by a catalog of songs including Earth, Wind & Fire, Minnie Ripperton, and more.

$18,750

advance amount

$25,000

repayment amount

$500

down payment

Sorry, this advance has been sold.

Overview

Historic royalty income is no indication of future royalty income. Future royalty income is dependent upon future sales and licensing revenue generated by the sound recordings or compositions associated with this listing.

What is a peer advance?

With a Peer Advance, the investor is buying limited-term rights to collect royalty income until a fixed return is achieved.

In this case, the investor would pay $18,750 for the right to collect the seller's royalty income until the investor receives a total of $25,000 in royalty payments. The total return, what we call the 'Repayment Amount', equals the Advance Amount plus a 33% return ($18,750 x 1.33 = $25,000).

With this investment, the variable is not the amount of return the investor can expect. The investor will receive all royalties generated until the total return is achieved.

Instead, the variable is the amount of time it takes for the investor to receive the full Repayment Amount. You will receive $25,000 in royalty payments. The only question is how long it will take. Fortunately, we can look at the earnings history of the asset to approximate the payback period.

For example:

  • If future quarterly payments equal the average of the last four quarters, the investor will receive the Repayment Amount in 24 months. That's approximately a 15% Annual Rate of Return.
  • If future quarterly payments equal the most recent quarterly payment, the investor will receive the Repayment Amount in 27 months. That would generate approximately a 14% Annual Rate of Return.
  • Even if future quarterly payments drop by 5% in each quarter, the investor will receive the Repayment Amount in about 30 months. Even in this case, the Annual Rate of Return is about 12%.

What is the Royalty income stream?

The investor is purchasing limited-term rights to collect 100% of the seller's one-third interest in the songwriter's share of public performance royalties attributable to the seller's BMI catalog. In the past 12 months, this catalog has generated $12,707 More details can be found in the financial information tab above.

HOW DO PAYMENTS WORK?

Royalty Exchange will collect and distribute the royalties generated by the seller's catalog of musical works to the investor on a quarterly basis. Payments will continue until the investor recoups $25,000. As soon as the investor realizes the entire Repayment Amount, the owner will again receive 100% of their royalties.

The first payment to the investor will be in September 2017.

DISCLAIMER

*Information presented is not intended to be investment, tax or legal advice. Past performance of this royalty stream is no guarantee of future results. Estimated or projected investment returns and payback periods are not guaranteed, and investors may lose some or all of the principal invested. Investors should consult their financial advisor if they have any questions or need additional information.

Financials

Documents

Media

Post-Auction Process

Attention

This action is restricted to Royalty Exchange users.
Please, sign in or create a free account to continue.

Sign In Register