Holy cow! The new investment model for music publishing is centered in Guernsey, a small island in the English Channel.
Minneapolis. Seattle. Atlanta. Guernsey?
Most music executives probably don’t know much about the island, a 25-square-mile British Crown Dependency in the English Channel that’s best known for dairy cows and tax avoidance. But the way financial regulations there allow music publishing ventures to organize their assets and operations into separate companies has made it a surprising hot spot, and home to some prominent recent entrants in the business: Hipgnosis Songs Fund Limited, Round Hill Music Royalty Fund Limited and Tailwind Acquisition Corp.
Well, sort of. Those companies don’t have real offices on the island, and their top executives aren’t among its 63,000 inhabitants. In fact, those executives are technically employed by the investment advisory firms that work with those companies: The Family (Music) Limited (which works with Hipgnosis), Round Hill Music and Tailwind Entertainment Limited.