Music Royalties: The Alternative Asset Hitting All the Right Notes

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As investors search for alternative assets with staying power, music royalties are quickly gaining traction—and for good reason. They offer a rare combination of recurring income, low correlation to traditional markets, and cultural relevance. 

According to SongVest, music royalties are gaining popularity as an alternative investment—and for good reason. They offer a unique mix of steady income, diversification, and cultural value that few other assets can match. Here’s why more investors are tuning in:

• Steady income every time a song is played or used.

• Not tied to the stock market, so they help balance your portfolio.

• Can grow in value over time—especially if a song becomes popular again.

• Open to everyone through platforms like SongVest, not just industry insiders.

Chart sourced from Toptal

To add, Toptal reports that music royalties tend to hold steady regardless of broader economic shifts. Even during downturns like the COVID-19 pandemic, music spending remained strong. Goldman Sachs notes that recorded music has grown 2.4x faster than consumer spending since 2016, thanks to streaming. Music publishing has also stayed resilient. Public examples like Mills Music Trust (beta -0.65) and Hipgnosis Songs Fund (beta 0.21) show lower volatility, making royalties a stable, income-generating asset for investors.

We're also seeing a revival of music royalty securitization. In today’s streaming-driven landscape, it’s being reimagined as a powerful capital-raising tool. By turning future royalty income into tradable securities, artists can unlock liquidity without giving up ownership. According to Vervent, the resurgence is powered by more stable royalty streams, higher catalog valuations, and data-backed deal structures that give both creators and investors more confidence.

This evolution is drawing attention from major players. Blackstone, Hipgnosis, Stephen Hendel, and Round Hill Music are just a few of the notable investors entering the space, drawn by the potential for durable returns and diversification.

As the lines between finance, culture, and technology continue to blur, music royalties are proving to be more than just an alt asset—they’re a modern financial instrument reshaping how we think about intellectual property and long-term value. For investors and artists alike, the opportunity is only just beginning.

If you're curious about how music royalties could fit into your strategy—or just want to bounce ideas—we’d love to connect. Let’s chat.

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