Acquisition #9: Cage the Elephant - All Works
We’re forecasting an average 12-15% return over 10 years... starting at just over 9% the first year and growing to 18% by year 10. These figures include the proceeds of an anticipated sale of the catalog and return of capital to shareholders after 10 years.
An equity interest of the composition copyright, and associated royalty income, of a music catalog spanning four studio album releases from the Grammy-winning American rock band Cage the Elephant (CTE). This represents 100% of the seller’s co-publishing stake in the catalog, which equals 40% of the total publishing copyright and related royalty income of the full catalog.
CTE Royalties LLC will have the right to collect income from the catalog’s Mechanical, Public Performance, Sync, and Print royalty streams for all studio albums created before July 31, 2017 (all songs on all four studio albums). CTE Royalties LLC will collect these royalties in partnership with the largest music publisher in the world by market share—Sony/ATV—which owns another 40% of the catalog and is the administrative entity supporting it.
The band is represented by one of the most powerful talent management agencies in the world—Q-Prime
Inc.—alongside such best-selling acts as Metallica and Red Hot Chili Peppers.