Things are shaking up in the music business this week as Kobalt raises $600 million to buy new music copyrights.
The fund, which is lead by John Ahlstrom, is using Railpen, the railways pension fund, to raise money for the subsidiary company to Kobalt’s business, Kobalt Capital Limited (KCL).
KCL is a Financial Conduct Authority (FCA), which regulates investment and acts as an advisory firm that focuses on music rights. It was created for their clients to sell their copyright and receive capital.
KCL gives Kobalt’s clients the option to sell their copyrights and still stay within the company. This makes a change to other publishing companies where the artist is usually only allowed to speak to one first-option buyer for their assets. With Kobalt, the artist is free to use their IP as they wish.
Kobalt Music Group remains a non-ownership administration technology partner for an enormous amount of songwriters, self-releasing artists, and publishers, who all retain their intellectual property.
Additionally, Kobalt Music Group has raised money this year valuing at almost $1bn.
It will be interesting to see how things will go for KCL and Kobalt Music Group during the rest of this year so keep your eyes peeled for more updates!
For more information on this story checkout: https://www.musicbusinessworldwide.com/kobalt-capital-raises-600m-to-spend-on-buying-copyrights/