Music fund makes its debut on the London stock market

Music fund Round Hill has been set up to try and buy tracks by artists including Katy Perry

Graeme Evans, Markets reporter13 November 2020

A new music fund set up to buy classic tracks by artists including The Rolling Stones, Marvin Gaye and Katy Perry has made its debut on the London stock market.

Round Hill Music Royalty Fund raised US$282 million (£214 million) from investors ahead of the initial public offering, less than the $375 million (£285m) originally hoped for.

Round Hill, which has offices in London, New York, Nashville and Los Angeles, is targeting total returns of 9%-11% a year, including a dividend yield of 4.5%.

It has followed in the footsteps of Hipgnosis Song Fund, which joined the stock market two years ago and is now in the FTSE 250 index.

Hipgnosis shares added half a penny to 117.5p today after it bought a 50% share of the catalogue of Grammy-winning songwriter, producer and punk-funk inventor, Rick James.

Cenkos Securities acted as sole bookrunner and financial adviser on the Round Hill IPO.