Round Hill set to IPO new fund on London Stock Exchange next month, raising $375m

 Round Hill set to IPO new fund on London Stock Exchange next month, raising $375m


MBW advised you again in August that Round Hill Music was planning a potential IPO on the London Stock Exchange. Now, it’s occurring.

New York-headquartered Round Hill Music intends to float a fund on the LSE next month, focusing on a increase of $375m.

MBW understands that the agency’s official Intention To Float (ITF) announcement will likely be issued within the coming days.

Round Hill is believed to have recognized a portfolio of catalogs from well-known songwriters and artists that it intends to purchase with the newly-raised capital.

These ‘pipeline investments’ encompass over 40 catalogs, throughout 120,000 songs, collectively price $363m.

Cenkos Securities plc is performing as sole bookrunner and monetary adviser for the IPO.

Round Hill Music was shaped in 2012 by its CEO, Josh Gruss, with an preliminary fund of $200m to spend on copyrights.

Six years on, it raised once more, this time for $263m, bringing its whole spending energy shut to $500m.

Over the previous eight years, Round Hill has additionally acquired rights to songs made well-known by the likes of The Beatles, The Rolling Stones, Bruno Mars and Florida Georgia Line, in addition to grasp catalogs created by the likes of The Offspring and Bush (whose catalog is co-owned by the corporate alongside the band’s frontman, Gavin Rossdale).

The firm is focusing on whole returns for buyers in its new London fund of 9-11% every year, together with a dividend yield of 4.5%.

In addition to its New York HQ, Round Hill runs extra places of work in Nashville, Los Angeles and London.

Its administration workforce consists of Neil Gillis, Richard Rowe, Steve Clark, Erich Carey, Amanda Siconolfi and Shannon Farley, working alongside Josh Gruss.

Round Hill’s in-house sync division, Zync, specialises in putting Round Hill’s music throughout movie, promoting, TV, trailers, sports activities and video video games.

Round Hill majority-acquired Zync in 2017, so as to maximise the industrial potential of music belongings below its management.

Round Hill’s largest acquisition to date was its buyout of Carlin in January 2018 for circa $245m, which netted the agency the Elvis Presley catalog, amongst over 100,000 copyrights.

In phrases of its London Stock Exchange flotation, Round Hill follows within the footsteps of Merck Mercuriadis’ Hipgnosis Songs Fund, which IPO’d on the LSE in 2018.

Hipgnosis has since raised and spent over $1bn on music rights, and constructed up a market cap valuation in excess of GBP £1bn.Music Business Worldwide


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