NEW YORK (CelebrityAccess) — As the recording industry becomes a less relevant source of funding for touring and recordings for new artists, Wall Street is stepping in.
According to the Wall Street Journal, a group of financial managers and music industry figures have launched the Unison Fund, a new investment vehicle aimed at financing tours, album production, videos and other ventures for developing artist.
In exchange for its investment, the fund will participate in revenue streams generated by the artist it supports, including ownership of recordings, merch and other sources of ancillary revenue, the WSJ said.
As well, the fund is said to be eyeing the festival assets of financially troubled EDM conglomerate SFX, which is currently restructuring after a bankruptcy filing earlier this year.
So far, the fund has raised $25 million in commitments from investors for its initial fund, which is expected to close by September. and looks to raise an additional $250 million, primarily from wealthy investors who, ideally, have experience with the music industry.
Partners in the Unison Fund include investment managers AGI Partners LLC, concert-booking firm Windish Agency, artist management group Tmwrk and music management consultancy Mtheory, the WSJ said. – Staff Writers