Music royalties: EICO Music Fund launches €1 billion international investment initiative

EICO Music Fund, the only EU-regulated Alternative Investment Fund dedicated to music, announces a €1 billion funding initiative aimed at the global market

MILAN, ITALY, July 9, 2025 /EINPresswire.com/ -- EICO Music Fund, the only EU-regulated Alternative Investment Fund (AIF) dedicated to music, announces a €1 billion funding initiative aimed at the global market. The operation consists of a €500 million investment round, followed by the issuance of twenty-year bonds for an equivalent amount after the summer. This dual move will finance the acquisition of new music catalogues over the next 12 months, strengthening the fund’s position in the global music rights investment sector.

In today’s uncertain environment—marked by geopolitical tensions, inflation, rising interest rates, and market volatility—investors are seeking stable, uncorrelated assets. Music royalties provide exactly that: consistent returns, resilience, and insulation from macroeconomic shocks.

“Music is a unique asset class,” says Eugenio Allora Abbondi, Founder and Director of EICO Music Fund. “It delivers structural stability, recurring cash flows, and competitive returns across economic cycles. Unlike traditional defensive instruments, music is immune to interest rate hikes, inflation, and systemic risk. It’s a global cultural good, consumed everywhere, every day.” EICO Music Fund is the only EU-regulated vehicle offering institutional, scalable access to this asset class. The fund manages the full value chain—from capital raising to the acquisition and monetization of music rights.

With a catalogue of over 35,000 tracks, EICO is already one of the sector’s major players. Its holdings include songs by Rihanna, David Guetta, Britney Spears, Katy Perry, Simple Minds, Zucchero, and Riccardo Cocciante, among others. Recent acquisitions have focused on German composers like Gunther Mende and Robert Schulte Hemming, with rights to iconic songs such as The Power of Love and major film and TV soundtracks.

Royalties from classic hits generate stable and attractive cash flows. “Legacy catalogues alone provide net yields over 5% annually,” notes Allora Abbondi. “We also generate additional income through synchronisation, cash flow optimisation, and third-party services. This model remains strong even in times of financial uncertainty.” He adds that the global music market continues to expand, fuelled by the rise of streaming and growing worldwide demand. “Our investor base is largely institutional, and this €500 million round will allow us to acquire increasingly valuable catalogues—boosting both profitability and stability.”

A bond offering secured by music rights
To further support growth, EICO plans to issue long-term bonds backed by copyright revenues.
“Alongside equity, we’ll use debt to enhance returns. These bonds, guaranteed by music rights, also offer retail investors a secure way to participate,” says Allora Abbondi. Music also acts as a hedge against inflation. Since it's included in the European Central Bank’s Harmonized Index of Consumer Prices (HICP), it benefits from positive inflation correlation. “Every time a song is played—on the radio, in a store, or on a streaming platform—it generates revenue. This passive income stream is at the heart of our active investment strategy,” explains the founder.

Investing in culture and cash flow
Beyond the numbers, Abbondi sees a deeper value in music investments: “This is more than just a financial opportunity. By investing in music, you become a co-owner of artistic masterpieces. It’s a way to blend financial returns with cultural impact.”

About EICO Music Fund
EICO Music Fund is a sub-fund of EICO Funds Sicav plc, the first European-regulated AIF (Alternative Investment Fund) dedicated to music-related investments.
EICO Music Fund is a new and innovative fund that holds rights to music that has shaped Italian and international history over the past 50 years, generating a steady and substantial cash flow that only the greatest songs of all time can guarantee.
The optimization of global rights exploitation and collection is ensured by an international structure and the use of innovative approaches leveraging the latest technologies. Drawing on the combined expertise of a team with over twenty years of experience in both finance and music, the fund offers financial strength and growth potential.

Disclaimer: This document is for informational purposes only and does not constitute an offer, investment solicitation, or financial advice. Past or expected returns do not guarantee future results. Investments in alternative funds involve risks and may not be suitable for all investors.

Mario Marchi
Esclusiva Srl
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