A new London-based fund is offering the music world huge potential loans so that they don’t have to sign away their rights for tough times.
Music Credit Fund probably don’t have capes, but they are swooping in to rescue struggling musicians and their rightsholders. With deep pocketed funds, the finance company are offering loans to artists and the licensed rightsholders of music to keep them going through these difficult times, as an alternative to selling away their rights.
They are offering up to $2 million to borrow for 5-10 years loans at “competitive interest rates” with no personal guarantees. They have Gravis Capital Management Limited on board as their investment fund manager who will aid them in offering loans to songwriters and artists themselves, as well as “for any business-related purposes such as acquisitions or business development”.
The Music Credit Funs (MCF) has been launched by Jack MacDonald, Managing Director of Alvarium Investments’ Merchant Banking. He says: “Existing acquisition models and restrictive debt offerings shouldn’t be the only way to access funding in the music industry. The last few years has seen a growth in understanding and confidence in the space and in our view this should lead to more evolved, fairer options for creatives.
“Music Credit Fund will offer the industry the opportunity to secure finance against their intellectual property and revenue streams whilst maintaining full ownership of the businesses and copyrights that they have created.”
The MCF has launched with two advisory board members to oversee decisions and advise funding. They are former Association of Independent Music CEO and Chair Alison Wehnam, and ie:music’s Co-Founder and Chairman Tim Clark.
Alison Wehnam said: “MCF will be a competitive and global finance solution for the whole industry. We are providing a transparent, equitable and elegant solution to companies, content owners and artists who require finance but above all, wish to retain their rights.”
Tim Clark added: “I’ve always been a firm believer in artists and creators owning their own rights and Music Credit Fund provides an excellent option for those who are seeking to release capital from their rights but don’t want to sell outright. For that reason, the fund has my staunch support.”