What is All Access Investor?
The All Access Investor membership is our premium membership level. All Access Investors hold significant benefits over nonmembers, including:
- Exclusive Early Access to Multi-Million Dollar Private Syndicates
- Discounted Share Prices in Private Syndicates
- Waived Buyer Fees on Auctions
- Discounted Listing Fees on Auctions
- Industry Insights and Exclusive Valuation Tools
Or read on to find out more...
Why Become an All Access Investor
Royalty Exchange is the premier marketplace for income-generating music royalties. And word has gotten out.
We’re adding an average of 600 new investor members a month, all with a voracious appetite for acquiring music royalties.
Why? Because our marketplace remains one of the few places where investors can secure double-digit yields without taking on disproportionate risk.
- Music royalties can offer yields of well above 10%.
- Royalty income is not subject to the fluctuations of broader financial markets.
- The music industry is in the early stages of a massive bull market driven by streaming services (like Spotify, Apple Music, and Amazon’s Prime Music) causing royalty income to soar.
Yet the single biggest challenge royalty investors face is the lack of deal flow. There simply isn’t enough supply to meet investor demand.
With over 22,500 investors registered on Royalty Exchange, competition is getting fierce. For every investor who wins an auction, an average of seven others get beat. And while the number of auctions taking place on our marketplace have doubled over the last six months, demand simply outpaces the supply.
As a result, auction closing prices are increasing. Average closing multiples have increased from 5.4x at the end of 2016 to 6.8x in mid-2018.
So we’ve introduced a new, premium investor membership program called All Access Investor, designed to help serious royalty investors navigate an increasingly crowded market.
All Access Investor Benefits
Becoming an All Access Investor allows you to not only gain early access to the best royalty investment opportunities, but to do so at a discount. What’s more, we’ll arm All Access Investor members with the knowledge and tools to make better royalty investment decisions.
Private Syndicate Access
First off, to give investors an easier way to invest in world-class music royalty catalogs, we’re setting up a series of Private Syndicates. These Private Syndicates give accredited investors the ability to buy an equity interest in multi-million dollar, top-tier, income producing catalogs too large for the auction marketplace.
Private Syndicates can meet the income-generating needs of both individual investors with at least $10,000 to invest, and hedge funds with a minimum position size of $1,000,000 - subject to availability.
It's important to understand that Private Syndicates work differently than the auctions you've seen on Royalty Exchange to date. Here are a few key differences:
First off, Private Syndicates aren't auctions. Rather than engaging in a bidding war, the cost of the units in the Private Syndicate are known in advance. And, unlike our auctions, Private Syndicates give investors the flexibility to take a position size in each catalog that best suits them.
The organizational structure of all of this is through the use of an SPV — special purpose vehicle. Essentially, we create an LLC that holds the music royalties in question. No other royalties will be owned by this LLC. It is specifically set up to hold this single catalog and direct royalty income to its shareholders.
Investors participate by purchasing units in that LLC. Unit-holders or shareholders are then entitled to their proportional share of income generated by the LLC.
Only accredited investors can participate in Private Syndicates. Accredited investors include anyone with over $1 million of investable assets outside of a primary residence. OR investors with an annual income of $200,000, or $300,000 for joint income, for the last two years. Accredited investors include individuals, banks, insurance companies, brokers, and trusts.
Not all music catalogs are created equal. And, I can say without hesitation that our Private Syndicate offerings will be among the top tier catalogs we’ll see, offering investors the best income potential.
As with all the royalties we’ve made available to investors, we expect the demand for Private Syndicates to outstrip supply. So subscribers to All Access Investor have the opportunity to invest in Private Syndicates before they’re made available to the 22,500+ (and growing) investors registered with Royalty Exchange.
Our first Private Syndicate, in fact, had 94% of capacity filled by All Access Investor members before it ever was made available to the general public.
While early access is important when supply of great deals is scarce, All Access Investor members get more than just access… As a member of All Access Investor, you’ll be able to buy units in Private Syndicates at a substantial discount to what non-members pay.
If you participate in even a single Private Syndicate, it’s easy to offset the costs of joining All Access Investor. But there are substantial benefits to the membership fee outside of Private Syndicates, including:
Waived Fees Buyer's Fees on Auctions
All Access Investor members will pay no transaction fees for assets purchased on the exchange. Because Royalty Exchange now administers payment for each asset purchased, there is a one-time $500 fee for each asset won. As an All Access Investor, that fee will be waived. So investors participating in multiple auctions will realize immediate savings.
Reduced Listing Fees on Auctions
All Access Investor members receive a 20% discount off the fees for any asset you resell on our platform. This means greater returns when you sell an asset previously purchased on the exchange.
Exclusive Valuation Tools
Early access to valuation tools we use to understand music royalties including beta access to the proprietary model we’ve developed for valuing any assets listed on the exchange.
Valuable Industry Insights
Monthly insights on music royalties, related news, and valuation strategies.
If you’re serious about investing in cash-generating music royalties, there’s no better way to do so than as an All Access Investor. You’ll get the first opportunity to invest in all Private Syndicates, pay no buyer fees on auctions you win, and you’ll have the opportunity to beta test the tools and insights we invented to understand and value music royalties.
The annual membership fee is $2,999 and pays for itself with the very first Private Syndicate offering available. It only gets better from there.
As a member of All Access Investor, you get all these benefits for the next year, and beyond if you renew for additional years.
Simply click the link below to secure your All Access Investor Membership today.
When will the first Private Syndicate be open for investment?
The first investment window for All Access Investors lasted from June 1 - 22, 2018. All Access Investor members acquired 94% of available units before the window opened to non members.
Can I invest in Private Syndicates even if I’m not an All Access Investor?
Yes, provided units are still available after the member-only window closes.
Do All Access Investors get the opportunity to invest for a lower share price in all Private Syndicates?
Yes. A key benefit of All Access Investor Membership is discounted pricing of Private Syndicate deals. In the first Syndicate, All Access Investor members saw a $200 per unit discount
What is the refund policy for All Access Investor subscriptions?
If you wish to cancel your All Access Investor membership within 30 days after you sign up, we will refund your annual membership fee in full, provided that you have not subscribed to a Private Syndicate at the All Access Investor member price, or received a waiver of an auction transaction fee on the Royalty Exchange marketplace. After 30 days, your membership fee is non-refundable.
How does Royalty Exchange Make Money on the Private Syndicates?
Royalty Exchange facilitates Private Syndicates for the benefit of creators and investors. The only form of compensation received by Royalty Exchange for this service comes in the form of a carried interest in the offering. This results in Royalty Exchange owning a small portion (typically between 5-10%) of the SPV used to facilitate the investment. (For more details relating to any particular Private Syndicate, please refer to the private placement memorandum covering the terms of that particular Private Syndicate.)