Earn an Estimated 16% Return on an Evergreen Catalog #2

Invest $13,125 to receive $15,225 in royalty payments generated by a catalog of songs including Earth, Wind & Fire, Minnie Ripperton, and more. 

$13,125

advance amount

$15,225

repayment amount

$50

down payment

Sorry, this advance has been sold.

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?

Royalty Exchange is extending a new service to royalty owners and investors called Peer Advance, combining the concepts of music industry advances with established peer-lending practices.

In the music industry, advances are a common practice whereby rightsholders can request advance payment against future earnings, typically from a label, publishing company, or private services. However these advances are not made available to everyone, and often times are associated with aggressive--bordering on predatory--interest rates and repayment terms.

Royalty Exchange is making this investment vehicle available to a wider investment community through a peer-lending platform that is more transparent and more attractively priced for both the investor and owner. By simplifying contracts, we are offering a product that will provide attractive short-term yields to investors, with appealing terms and rates to royalty income stream owners.

Simply, a Peer Advance is when an investor agrees to advance a royalty income stream owner a set amount, which is repaid with a set repayment amount via the borrower's royalty income stream. An investor will pay the “Advance Amount” to the owner, facilitated by Royalty Exchange, and receive payments generated from the royalty income stream until they receive the full “Repayment Amount.” The “Advance Amount” is the cost and the “Repayment Amount” is the return.

In this case, the “Repayment Amount” is the “Advance Amount” plus 16% ($13,125 x 1.16 = $15,225). Royalty Exchange projects the investor to recoup the “Repayment Amount” within one or two years, making this investment vehicle an interesting option for investors seeking a yield tied to a short-term holding.

What is the royalty income stream?

100% of the royalties generated from the owner's interest in the musical composition copyrights for owner's catalog of musical works currently administered by Music Sales Group. This catalog generates royalties from synch and mechanical licensing. The royalties are distributed on a bi-annual basis by Music Sales Group, and will be administered by Royalty Exchange. The first payment will be in February 2017. In the past 12 months, this catalog has generated $10,799, which is represented in the financial information.

How does a peer advance work?

Royalty Exchange will administer 100% of the royalties generated by the owner's catalog of musical works to the investor on a quarterly basis. Payments will continue until the investor recoups $15,225. As soon as the investor realizes the entire Repayment Amount, the owner will again receive 100% of the royalties generated by their catalog of musical works.

What is the return?

This investment has an estimated 16% return on the “Advance Amount.” The investor's realized rate of return will be determined by the amount of time, or bi-annual payments, it takes to receive the entire “Repayment Amount.”*

Disclaimer

*Information presented is not intended to be investment, tax or legal advice. Past performance 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.

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