Round Hill Music spent $342 million on 38 catalogs, earnings report shows

The Round Hill Music Royalty Fund invested a staggering $342 million in music intellectual property, including “a 29.1% investment in RH Carlin Holdings,” between early August 2020 and late June 2021. The corresponding portfolio included north of 118,000 compositions and 750 master recordings (excluding the O’Jays’ 532-track recorded catalog), and royalty income totaled $16,288,444 during the period.

These and other notable numbers were revealed in the Round Hill Music Royalty Fund’s new earnings report, which, as mentioned, covers the period from August 2020 (when the entity was incorporated, having come to the Stock Exchange from London last November) and June 30, 2021.

It should be noted at the outset that “about 75% of compositions are over 20 years old” and that some 75% of the fund’s income during the period came “from titles released more than 20 years ago”.

As for Round Hill’s precise financial position as of June 30, total current assets were worth $23,944,194. (The company and the UK-based songwriting investment fund, Hipgnosis, use the USD as their primary currency.) “financial assets at fair value through profit or loss”.

Round Hill’s total liabilities, for its part, amounted to $37,946,664 throughout the approximately 11-month window, and the song fund brought in royalty income of $16,288,444. as mentioned initially. The fund’s total comprehensive loss reached $2,191,714 during the period.

The Round Hill Fund listed “catalog amortization” as its largest expense ($8,824,140) during the reporting period, followed by “investment management fees” ($1,788,531) and “legal and professional fees” ($990,146), respectively. However, the fund has tapped Round Hill Music itself to serve as its “investment manager,” meaning the entire $1.79 million tranche will reach the business “in cash,” with “$864,592 outstanding” as of June 30.

Global group Round Hill Music (reportedly “the sixth-largest music publisher in the United States”) is also expected to benefit from a “performance fee,” which amounted to $304,232 at the end of the period (with the total amount outstanding) and is “generally payable principally in Shares subject to an 18-month lock-up agreement. »

Finally, regarding the windfall that Round Hill herself will receive from the song fund, the publisher’s administration work entitles her to “10% of all net income he collects on behalf of the band” – or $850,717, with $497,707 outstanding as of June 30. And separately, a third Round Hill Music Royalty Fund was incorporated on September 22.

Perhaps the most interesting finding of the earnings report is the Round Hill Fund’s breakdown of the synchronization license payments that the stretch has resulted in.

For example, “Expedia’s latest ads featuring comedienne Rashida Jones” include a cover of Eric Carmen’s “All By Myself,” and the placement netted the reporting entity a fee of $265,000. (“All By Myself” also earned $30,000 from a placement in the final season of the US version of Shamelessaccording to the document.) And Jimmy John’s licensed the Hollies’ “Long Cool Woman in a Black Dress” for a Super Bowl commercial, paying $100,000, according to the text.

“Gramatik-recorded ‘Aymo’ originally featured in a Porsche commercial that first aired during Super Bowl LIV, but has just been renewed for a second year at US$72,500,” the text continues. ‘Turtles’ ‘Happy Together’ is used in a Toyota Hybrid advert outside the UK for £250,000 [$338,630 at the present exchange rate].”

Other sync locations (and their respective fees) outlined by the Round Hill Fund include:

  • $164,000 – Honne’s cover of “What a Wonderful World” (written by George David Weiss and Bob Thiele) in “a digital campaign for the luxury brand of Hyundai Genesis”
  • $62,500 – A cover of Howie Day’s “Collide” (co-written by Kevin Griffin) in a General Motors Periscope video showcasing the company’s “new focus on safety and emissions”
  • “>US$44,000” – An edited version of “Before He Cheats” (written by Chris Tompkins and Josh Kear) in a State Farm radio commercial
  • $75,000 – “Hold On To Me” by Valérie Broussard in a trailer by Kevin Hart Paternity – plus $14,700 for Broussard’s “Shadow Self” (recorded by LSDREAM) in an NFL postseason promo
  • $70,000 – Weezer’s cover of ‘Happy Together’ (written by Garry Bonner and Alan Gordon) in a trailer for the upcoming Ron gone wrong
  • $50,000 – Gil Scot Heron’s “The Revolution Will Not Be Televised” in a trailer by The Roots drummer Questlove’s soul summer
  • $40,000 – Buggles’ “Video Killed the Radio Star” (written by Trevor Horn, Geoff Downes and Bruce Woolley) in trailer for Apple TV+ Physical
  • $20,000 – Warrant’s “Cherry Pie” (written by Jani Lane) on an episode of CBS Young Sheldon
  • $25,000 – “Paradise by the Dashboard Light” by Meat Loaf (written by Jim Steinman) in the upcoming Netflix Maid
  • $20,000 – “I’d Do Anything For Love (But I Won’t Do This)” by Meat Loaf – also written by Steinman – in an episode of Netflix Q-Force
  • $19,400 – “Best Day of My Life” by American authors in a commercial for ABC call your mother
  • $37,500 – “Good Lovin'” (written by Rudy Clark and Arthur Resnick) in a promo for the Hulu original Lisey’s story