Update on Second Investment

LEI: 213800752UO1CJTV8C39

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29 March 2021

ROUND HILL MUSIC ROYALTY FUND LIMITED

("RHM" or the "Company")

Update on Second Investment

On 2 February 2021, the Company announced its plans to acquire the Pipeline Investments, as detailed in the prospectus published by the Company on 19 October 2020 (the "Prospectus"), by way of a two-step process. The Pipeline Investments comprised the existing assets of Round Hill Fund One, a private fund whose investments are managed by Round Hill.

The first step was the acquisition of the assets of Round Hill Fund One excluding its shareholding in RH Carlin Holdings LLC ("Carlin") (the "First Investment") which was completed by the Company on 1 February 2021. Following the completion of the First Investment, RHM had successfully invested 86 per cent. of the gross proceeds raised in the Company's IPO and subsequent placing.

The second step in acquiring the Pipeline Investments involves the Company's acquisition of a 29.14 per cent. share in Carlin, owned by Round Hill Fund One (the "Second Investment"). The Board wishes to inform Shareholders that although the due diligence exercise and contractual documentation is progressing well, it is unlikely that the Second Investment will be completed by 31 March 2021. However, the Board are confident that the transaction will be completed within the six months of the Initial Admission as stated in the Prospectus. The consideration payable by the Company in connection with the acquisition of the Second Investment will reflect the underlying valuation of the Copyrights owned by Carlin as of 30 June 2020. Following the completion of this transaction, the Company anticipates paying to Shareholders the stated annualised dividend of 4.5 per cent. for the financial period to 31 December 2021.

FOR FURTHER INFORMATION

Notes: 

Unless the context otherwise requires, capitalised terms used in this announcement have the meanings in the Prospectus.

The Company is a recently incorporated non-cellular Guernsey company. The Company's Investment Objective is to provide investors with an attractive level of regular and growing income and capital returns from investment primarily in high quality, music intellectual property. In order to achieve its Investment Objective the Company will invest in a songwriter's copyright interest in a musical composition or song (being their writer's share, their publisher's share and their performance rights) together with the rights in the recording of the musical composition or song (known as the master recording rights) together with all such rights and assets considered by its investment manager, Round Hill Music LP ("Round Hill") to be ancillary thereto. 

Founded in 2010, Round Hill is a fully integrated owner and operator of music copyright properties and the seventh largest music publishing company in the US. Headquartered in New York with additional offices in Nashville, Los Angeles and London, Round Hill has an experienced management and investment team with an established reputation and extensive experience in the music and finance industries.