Mon, 17 Nov 2008, 16:00

       

Bramdean Asset Management, a London-based alternative investment manager, and Cutting Edge Music Holdings, a provider of music to the film industry, have announced the completion of a music-for-film investment fund, Resonant Music I. 
 
The fund will acquire the publishing rights to original scores featured in independently produced feature films and TV series, creating a music publishing catalogue which is intended to generate a high quality, long-term royalty revenue stream as well as the potential for capital appreciation in the value of the catalogue.
 
The fund has been designed exclusively for Bramdean's clients and has engaged Cutting Edge to find opportunities within the global film and television industries. 

 

It intends to provide finance for the music of around 200 film and TV projects, predominantly in the UK and the USA, over the next four years and is currently completing its first investments. 
 
Phil Hope, managing director of Cutting Edge, says: 'We will now be able to further assist filmmakers in achieving their creative aims by funding the music that they need for their productions while at the same time providing investors with a stable asset and a long-term revenue stream.'

By investing only in the music elements of a production rather than the production itself, the fund expects to avoid the volatility associated with traditional film finance. 
 
Nicola Horlick, chief executive of Bramdean, says (photo): 'The fund offers Bramdean clients something that is truly unique and which will demonstrate virtually no correlation to their other investment classes. This is an important investment objective for clients looking for genuine portfolio diversification.'

At a time when many asset classes are performing poorly and demonstrating increased correlation with traditional financial markets, Bramdean believes that exposure to a well-constructed portfolio of intellectual property rights through the investment in Resonant Music I should deliver steady returns, which are uncoupled from both traditional and alternative asset classes.   

 

Bramdean and Cutting Edge plan to collaborate on larger follow-on funds which may be available to external investors as well as to Bramdean clients.