Looking for a new investment opportunity? Some say to invest in gold, others in stocks. But if you're looking to invest in something that is off the beaten path, how does the opportunity to invest in the catalog royalties of one of the most successful rappers in history sound? Well, if that's what you're looking for, you're in luck.
According to a report from Billboard, a new company called Royalty Flow, which has been formed by Royalty Exchange, is expected to file with the U.S. Securities and Exchange Commission in order to raise anywhere from $11 million to $50 million in crowdfunding in order to list with NASDAQ. The company has signed a letter of intent in order to buy a minimum of a 15 percent portion of an income stream of royalties from Eminem's music (they are willing to buy up to a 25 percent portion).
The royalties in question come from albums that Eminem has released between 1999 and 2013 on Aftermath/Interscope Records, including 'The Marshall Mathers LP,' 'The Eminem Show,' and 'The Slim Shady LP.' As far as the income stream is concerned, it is based on royalties paid to FBT Productions, which works with Eminem on a consistent basis and produces his music. According to estimates, FBT has been paid $47.2 million since 2011.
Joel Martin, who manages FBT Productions, and Royalty Flow CEO/Royalty Exchange president Jeff Schneider, say that they plan on letting Eminem fans and investors into the company receive financial benefits as a result of the performance of records by Eminem, which in turn would increase the royalty payout. The minimum investment would be $2,250 for 150 shares.
Matt Smith, Royalty Flow's chairman said the following in a statement, "Royalty Flow gives investors the opportunity to participate in assets that are uncorrelated with public markets, and directly benefit in the music industry's growth It also gives artists, producers, labels, songwriters, publishers and other rights holders a powerful new financing option with a level of transparency seldom found in the music industry."