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Music Credit Fund launches to offer alternative finance options to music-makers
By Chris Cooke | Published on Wednesday 28 April 2021
A new finance company targeting the music industry unveiled its services earlier this week, with former AIM chief Alison Wenham and veteran artist manager Tim Clark among its advisors.
The company says that its aim is to allow music-makers and music companies operating at a certain level to access affordable finance without having to doing deals that involve the assignment of copyrights to business partners, such as labels or publishers, or the other investment funds that have entered the music industry with rights acquisition as a main objective.
Or – in the words the Music Credit Fund itself – it will offer artists and other music rightsholders “long-term, competitively priced loans secured solely against intellectual property assets and/or future income streams across all music industry sectors”.
It adds: “For individual songwriters or artists, MCF will provide a particularly attractive alternative to those who prefer to retain ownership of their personal creative output. For companies, MCF funds can be used for any business-related purpose such as acquisitions or business development. For owner-managed companies, it can provide an opportunity to raise capital whilst retaining control and independence”.
The fund has been launched by Jack MacDonald of Alvarium Investments, who 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”, he goes on.
Confirming that she has joined the Fund’s advisory board, Wenham adds: “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”.
While Clark says: “I’ve always been a firm believer in artists/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”.
