Finding the right asset Investors can either buy an existing royalty, or create a royalty against an asset that generates revenue. Partners Group Music Royalties 101: An In-Depth Guide
Now, every time that song plays in a café or gets streamed on a rainy Tuesday, Sarah doesn't just hear a melody—she hears the sound of her investment growing. Royalties - A Primer - Partners Group how to buy royalties
To buy royalties, you typically purchase the rights to future earnings from an asset like music, books, or patents through specialized marketplaces like Royalty Exchange or SongVest. The Song of Sarah: A Story of Buying Royalties Finding the right asset Investors can either buy
The auction was competitive. Sarah knew she was buying the rights to the stream of income, not the copyright itself—she couldn't change the lyrics or stop people from playing it. She calculated that if she paid $25,000 (a "5x multiple" of its yearly earnings), she would theoretically make her money back in five years, and everything after that would be pure profit. The Song of Sarah: A Story of Buying
She found an auction for the "Mechanical Royalties" of her favorite 90s track. Before bidding, she looked at the "LTM" (Last Twelve Months) earnings. The song had consistently earned about $5,000 a year for the last decade . It wasn't a viral hit that would fade; it was an "evergreen" asset.