Dire Straits Catalog Sees Overwhelming Investment Demand From Royalty Exchange Investors

Dire Straits
Gijsbert Hanekroot/Redferns

Dire Straits photographed in Amsterdam, Netherlands in 1978. 

Initial demand for the British rock band's manager’s commissions outweighed supply by 85 percent on the online royalty marketplace.

Royalty Exchange, an online marketplace that turns music loyalties into assets for investment, announced it had completed a private syndicate offer on Monday (Oct. 15) for Dire Straits' former manager Ed Bicknell's portion of their catalog. The initial demand for the British rock band's catalog outweighed the supply by a whopping 85 percent.

When the syndicate was made available to its network of investors, Royal Exchange put out a total of 925 units and received 1,719 unit requests. 

“The demand for the Dire Straits catalog illustrates just how well music royalties satisfy investors’ appetite for a meaningful return in today’s investing landscape,” said Royalty Exchange CEO Matthew Smith in a statement. “On Royalty Exchange, we aggregate both supply and demand to the benefit of music creators and investors.” 

Royalty Exchange’s private syndicates aim to acquire music catalogs that can provide double-digit returns. The Dire Straits syndicate, which is predicted to accumulate 12 to 15 percent in returns, gives the musicians and rightsholders control over how their loyalties are managed within the music industry due to the level of demand.

“There’s an entire generation of music industry veterans like myself and my colleagues who are looking for smart ways to organize our finances,” said Bicknell in a statement. “For many of us, the royalties we earn are our most important asset. So it’s important that we treat them with care, not just for ourselves as individuals, but for our families.”