Round Hill Music Royalty Share Discussion Threads

[timmy40] 08/9/2023 21:19

Is that a wrap on this one or is there more to go, see the price narrow to NAV, not studied the RNS yet, but am a holder

[strollingmolby] 08/9/2023 12:32

Indeed, well predicted! I guess that closes the discount to NAV then...

[edwardt] 08/9/2023 07:56

looks like i did not need to eat it then!

[edwardt] 25/5/2023 09:15

cheap as chips this one. 20% lfl growth on a whacking discount. if this is not a takeover target i will eat my hat.

[hugepants] 27/4/2023 15:21

Perking up a bit here.

[riverman77] 14/4/2023 17:19

Yes for the REITs I also look at the EPRA earnings yield as the primary metric, although NAV is still useful as it should give a rough indication of what the properties would sell for. However, I am much more sceptical of the NAV for SONG/RHM as no idea if the catalogues could actually be sold for what they're meant to be worth.

[hugepants] 13/4/2023 15:26

You can make the same argument about all these fixed income type investments. Even the reits. I reckon they publish the nav for a reason.

[riverman77] 13/4/2023 14:43

Still think NAV is a meaningless figure for these royalty companies. Prefer to look at cashflow and on that basis neither look especially cheap. If I had to pick, I prefer Round Hill as they have an older catalogue (less prone to depreciation) and more of an established track record (well over a decade as a private fund).

[hugepants] 13/4/2023 14:25

Yes depends on which NAV you use. I don't know enough about this so happy to use the significantly lower IFRS value. It looks cheap either way.

Todays RNS.



"The independent valuation that we have received from FTI Consulting supports our strong view that the Round Hill Music portfolio is significantly undervalued by the market and therefore offers considerable upside potential, as reflected in the organic growth that has been delivered since IPO.


SONG is the other one in this sector. SONG is flat ytd whereas RHM is -20%. Not had time yet to compare them yet

[edwardt] 13/4/2023 12:30

50% discount isn't it? i am tempted to nibble as implies a discount rate applied to future cashflows of circa 13% against 2 valuers swearing bling 8.5% or 19 times current earnings is about right.

[hugepants] 11/4/2023 12:43

Looks interesting down here. Yield 7.25% (albeit not covered yet) and a 30%+ discount.

[rambutan2] 20/12/2022 21:52

Good update:

Josh Gruss, Founder and CEO of Round Hill Music LP, the Company's Investment Manager, commented:

"I'm delighted with the significant increase in NPS seen from the Company's portfolio's underlying catalogues. We continue to strongly believe in the positive fundamentals of the music industry despite the challenging macro environment and this update again points to the lack of correlation with the earnings of the asset class to equity market movements. There is much to be excited about as we head into the end of 2022 and we look forward to continuing to optimise these valuable assets through our active catalogue management to deliver a strong portfolio performance."

[pob69] 25/9/2022 14:35

Equity note from Goldmans

with a couple of references to RHM

[pob69] 17/8/2021 09:03

RHM new report from Edison

Initiation Report - Music and finance in harmony

[apollocreed1] 02/6/2021 01:01

The recent RNS shows that they have announced a dividend of $0.0075 for the quarter. So over 4 quarters that will be $0.03 cents. 3 cents on a share that's $1.06 is even less than a 3% yield. There are better yields available on other shares, including with Hipgnosis Songs Fund. Am I missing something here? E.g. Is there any chance the dividend will be raised?

[pob69] 19/5/2021 08:45

No figures in article and has no RNS as yet.

Who knows if it matters but the end of the article states;
"...In March, MBW reported that in Q4 2020, Round Hill Music equalled its best-ever market share performance for radio hits in the US.

According to Billboard data, Round Hill ranked at No.6 with a 3% share of the Top 100 most popular radio hits across all genres in the quarter – behind BMG (No.5), Warner Chappell (No.4), Kobalt (No.3), UMPG (No.2), and Sony Music Publishing (No.1)."

[jong] 11/3/2021 16:18

Does anyone know the likely annual yield / dividends etc. for RHM ?

[rambutan2] 24/2/2021 21:56

Worth a butchers:

[pob69] 24/2/2021 19:11

This is a revealing article,on competitor SONG.

"...There are plenty of people with my face on a dart board in their offices,” says the smooth-talking, 57-year-old former manager"

"...There are now signs his cachet with songwriters is weakening. Sources tell Forbes that artist managers have quietly begun lining up backup buyers in case talks with Mercuriadis fall apart, a break from the exclusive negotiations some willingly entered last year. They say Hipgnosis lost out on at least two recent high profile deals despite offering more money. Sour grapes, says Mercuriadis, who denies this and touts his bond with artists as a competitive advantage."

[strollingmolby] 08/2/2021 21:51

RHM beats SONG on royalties disclosure

Another recent new issue, Round Hill Music Royalty Fund (RHM) already seems to be just about fully invested. At launch, it had a near-term pipeline valued at $363m, but raised $282m (£206m) of its $375m target at IPO on 11 November 2020. It has the ability to gear, or borrow, up to 25% of net asset value (NAV), but even with this it still would have been just shy of the amount needed to buy the entire pipeline. Fortunately, it was able to top up its cash pile with a placing of $46.6m worth of shares on 16 December.

Now RHM has put that money to work. It has bought the majority of the assets of a pre-existing fund, Round Hill One for about $282m and is in the process of acquiring a 29.1% stake in RH Carlin Holdings LLC, a fund that owns over 100,000 copyrights. Once that deal completes, RHM will have invested all of its IPO proceeds plus some gearing.

That puts it in a position to come back to investors for more money. RHM says it has a further pipeline of about $500m worth of catalogues of song rights. It could reasonably look to double in size.

Getting the money deployed means the income starts to flow and for RHM that will start to manifest itself as dividends next month. The target is an annualised dividend of 4.5% of the launch price for this year.

RHM’s announcement gave more information about the $282m Round Hill One portfolio. 18,000 songs across over 38 catalogues, a bias to older compositions (85% written between 1950 and 2010), and encompassing a diverse range of music from Aerosmith to Celine Dion, the Beatles to the Backstreet Boys, and Joni Mitchell to Ozzy Osbourne.

The really striking thing about RHM’s acquisition though, was just how much information they have disclosed to investors. Visiting the fund’s website, I was amazed to see actual annual revenue figures for each catalogue going back as far as 2011, a presentation detailing value creation initiatives for each catalogue and some useful information on how the portfolio was valued, including the news that it was written up in value from $266.3m to $281.9m over the first six months of 2020.

We have perhaps become conditioned to minimal disclosure by Hipgnosis Songs Fund (SONG), but RHM seems to have thrown down a gauntlet in this regard. Perhaps that’s why investors only bought £75m of new shares in its latest placing, although to be fair Hipgnosis was the largest investment company fund raiser last year, drawing in over £400m in two issues.

[strollingmolby] 08/2/2021 19:09

The Company is a newly incorporated non-cellular Guernsey company. The Company's Investment Objective is to provide investors with an attractive level of regular and growing income and capital returns from investment primarily in high quality, music intellectual property. In order to achieve its Investment Objective the Company will invest in a songwriter's copyright interest in a musical composition or song (being their writer's share, their publisher's share and their performance rights) together with the rights in the recording of the musical composition or song (known as the master recording rights) together with all such rights and assets considered by its investment manager, Round Hill Music LP ("Round Hill") to be ancillary thereto.

Round Hill: We pioneered royalties, Hipgnosis just listed first
14 Oct, 2020

The company launching the second London-listed music royalties fund has said its pioneering record and stable of golden oldies make it a distinct proposition from Hipgnosis Songs (SONG), which has proved a hit with investors since listing two years ago.

Josh Gruss, founder of the decade-old firm, credited Hipgnosis with cracking the UK market and building investor awareness of the asset class, but emphasised that not all music royalties funds were one and the same.

‘Round Hill does think that there’s room for a second player but also we think that we are, out of all the players in the space, the one that deserves to be the second player and is the best set up to be that rival, if you will,’ he said.

[rjmahan] 16/6/2019 01:53

Still exists - selling shares, might one day get my money back....

hxxps://klse.i3investor.com/insider/substantialShareholder/0007/12-Jun-2019/459604_55434162.jsp

[rjmahan] 18/12/2017 16:35

There was a new post on this - hxxp://redhot.asia/ .

Changes to articles with articles not attached...

Have asked company....

[rjmahan] 23/11/2017 18:11

Anyone heard anything on this ?

Stock doing well
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