Apex Group wins administration mandate from Canadian Music Royalty Fund

Music royalties have been tipped as an up-and-coming alternative asset class, as Apex wins admin and transfer agency mandate.

By Jonathan Watkins

Apex Group has been appointed by Toronto-based investment firm Barometer Capital Management to provide administration services to its Global Music Royalty Fund.

The Canadian investment firm that manages more than $1 billion in assets has named Apex to provide fund administration and transfer agency services to the fund.

Barometer Capital partnered with the Kilometre Music Group, a music rights management company, to launch the fund, a limited partnership with a targeted size of $200 million that will invest in a diversified portfolio of music copyrights.  

The fund will seek to generate income and capital gains by acquiring catalogues of high quality, globally successful, enduring music copyrights and royalty streams with a focus on Canadian creators.

“Music royalties are undoubtedly considered one of the most attractive and fast-growing alternative assets for 2021 as investors seek non-equity correlated returns during ongoing market volatility,” said John Bohan, co-founder and country head business development (Ireland) at Apex Group. 

“By providing robust and reliable fund administration and transfer agency services, we will support Barometer Global Music Royalty Fund LP throughout its lifecycle, allowing Kilometre’s impressive management team to focus on securing a high-quality pipeline of proprietary opportunities and ultimately to generate predictable, stable cash flow to its investors.”

Music royalties have been tipped as an alternative asset class that could attract both traditional and retail investors, with the emergence of streaming services providing a more predictable revenue stream and universal reach.

“Recorded music is currently generating double digit revenue growth, with streaming expected to drive a twofold increase in total music royalty revenues over the next decade,” said Greg Guichon, chairman at Barometer Capital.

“By outsourcing fund administration and transfer agency requirements to a reliable third party, we are able to focus on the job at hand. We are delighted to be working with Apex and have been impressed by their international expertise, adaptability and flexible approach to structuring solutions to meet the specific requirements of our fund.”