New Cash for Catalogs: Rostrum Pacific and Crayhill Bet on Music Rights as a Growth Engine

Fresh funding to buy songs and streaming income

Rostrum Pacific said it has secured a $150 million financing package from Crayhill Capital Management to accelerate purchases of music catalogs and related rights. The money is meant to let Rostrum move faster on deals, competing for song portfolios that generate steady streaming and licensing income. For the music business, that means more bidders chasing the same hits. For investors, it is another sign that private capital sees predictable cash flows in music as worth buying—and that more debt and structured capital is flowing into the space.

How the financing appears to be set up and who’s involved

The companies announced the financing as a dedicated commitment to Rostrum Pacific’s catalog-acquisition strategy. The release did not lay out every legal term. That said, arrangements like this typically combine a committed acquisition facility with flexible draw periods and may include a mix of senior credit and subordinated or preferred elements to match the irregular cash flows of catalogs. Crayhill, a private capital manager, is providing the committed capital. Rostrum will use the money to pay upfront sums sellers demand, while keeping some ability to manage timing and tax-efficient deal structures.

Importantly, the two firms emphasized speed and scale: Rostrum gets dry powder to close quickly, while Crayhill gains exposure to a diversified pool of music royalties without directly running day-to-day music operations. Neither side published the interest, fees, or covenants attached to the facility, so the precise risk allocation—how much leverage on Rostrum’s balance sheet versus equity-style upside for Crayhill—remains private.

Why Rostrum is doubling down on catalog buying now

Rostrum’s logic is straightforward. Streaming platforms keep paying out, licensing deals keep getting signed, and older hits can earn for decades. By pooling many catalogs, Rostrum expects to reduce volatility from any single song and to capture steady royalty flows. The new financing lets the company buy more catalogs faster, chase larger, more competitive packages, and potentially negotiate better terms with sellers who want quick, certain cash.

On the revenue side, Rostrum can capture immediate licensing and streaming income and also create value through active rights management—placing songs in films, ads, and new media, or working with artists on reissues. The financing should improve deal economics by lowering the need to wait for organic cash flow or to dilute existing equity. For Rostrum’s backers, the plan is to compound returns by buying rights at prices that, over time, deliver yields above the cost of capital.

How this fits into the wider boom in music-rights investing

The announcement lands in a market where funds, specialist buyers and strategic labels have been snapping up catalogs for several years. That activity has pushed prices up and made speed and scale decisive advantages. For mid-sized buyers like Rostrum, a $150 million facility is a way to bridge the gap with larger players—allowing it to compete for bigger or bundled catalogs that previously required more capital.

At the same time, the market shows signs of maturation. More structured financing—credit lines, earnouts, and royalty-backed loans—has replaced the all-cash bids that dominated earlier waves. Investors seeking steady yield now have options beyond public equities and bonds; music royalties sit somewhere between a bond-like income stream and an asset that can appreciate. That has drawn institutional money but also made deal pricing more sensitive to interest rates and royalty growth assumptions.

What investors, artists and buyers should expect next

For Rostrum shareholders and private backers, the deal is mostly positive: it should boost buying power and shorten the time between identifying a catalog and closing. That can improve returns if Rostrum maintains discipline on price. For Crayhill, the move gives access to an asset class that has historically paid steady royalties and offers diversification from regular corporate credit or real estate.

Artists and song owners will see more bidders and, often, faster offers. That can be helpful if they want lump-sum payouts, but it also means competition could push some sellers into selling at lower long-term upside in exchange for immediate cash.

Key risks and what could derail the plan

The main dangers are valuation pressure and execution. If Rostrum overpays for catalogs in a hot market, future royalty growth may not justify the price, and the spread to cover financing costs could shrink or disappear. Rising interest rates or tighter credit could also make such facilities more expensive and reduce returns. There’s also operational risk: rights management, royalty collection across territories, and negotiating placements demand experience; mistakes can erode expected cash flows.

In short, the financing is a sensible move if Rostrum keeps price discipline and focuses on diversified, well-documented catalogs. If it chases deals too aggressively in a frothy market, Crayhill and Rostrum both shoulder the downside.

Sources

• prnewswire.com