Why Royalties Belong In Your Portfolio
Investors are always looking for ways to protect their money. Stock and bond markets can be unpredictable. Which is why many turn to alternative investments to diversify.
Royalties provide a great option to do so. Owners of intellectual property get paid every time someone uses their work. They create an asset once, and then collect payment over and over again.
Benefits To Investors
Royalty payments, especially music royalties, perform independently of public markets.
Royalties generate income that rivals bonds and dividend-paying stocks.
Royalties have a track record of earnings, paid regularly.
How To Invest
Royalty Exchange offers multiple ways to invest in royalties. They include our flagship auction marketplace and our new Private Syndicate program.
Our online marketplace allows investors like you to get find quality royalty investment opportunities directly from the owners themselves.
This gives you direct access to cash-generating intellectual property rights previously available only to institutional investors and industry insiders.
We don’t conduct backroom deals or broker private transactions. Instead, we facilitate public auctions and on a level playing field where everyone has access to the same information and opportunities.
Each listing includes the details necessary to help investors understand the income stream listed for sale:
- Historical earnings of the catalog
- Relevant rights and catalog information
- Links to contextual research, news, and other information
Royalty Exchange listings are structured in one of following ways:
- Term-Based: You receive royalty income for a fixed term (ie: 10 years). Royalty income reverts to the seller after the end of the term.
- Life of Rights: You collect royalty income for the lifetime of the underlying copyright. (Life of the creator PLUS 70 years).
- Income-Based: You to collect a fixed amount of royalty income. Royalty income reverts to the seller after the fixed return is paid.
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.
For each Private Syndicate, we'll create an LLC to hold the music royalties in question. Each is specifically set up to hold a single catalog and direct royalty income to its shareholders. Investors participate by purchasing units in that LLC, and are then entitled to their proportional share of income it generates.
Unlike auctions, there is no bidding. The cost of Private Syndicate units are known in advance, giving you the flexibility to take a position size in each catalog that best suits you. And only accredited investors can participate.
All Access Investor
Anyone can sign up for a Royalty Exchange account to bid on auctions and receive Private Syndicate notifications for free. However, we also offer a premium membership—All Access Investor—which provides significant additional benefits that include:
- Waived buyer's fees on auctions
- Exclusive royalty asset valuation tools
- A discount on listing fees on the auction house
- Early access to Private Syndicate deals
- Discounted pricing on Private Syndicates