We price music catalogues with precision and make them investable — as fixed-coupon bonds, secured by recurring royalty cash flows.
Music is an established, stable asset class backed by royalty payments continuously generated by millions of listeners worldwide.
global recorded & publishing net revenue (2024)
projected market by 2030 (~6.7% CAGR)
digital revenue share of the market (≈$27.3B of $39.5B, 2024)
paying subscribers worldwide (2024 → 2030)
Streaming has structurally reshaped the music industry. The market has now grown for eleven consecutive years, with royalty income at record levels. What matters is the quality of those revenues: recurring, globally diversified and contractually underpinned by paid subscriptions
Music royalties originate with the consumer – with every stream, every live ticket, every use in film, radio and TV. They flow to rightsholders via intermediaries such as collecting societies and distributors. A distinction is drawn between royalties from publishing and those from recording rights.
The issuing vehicle acquires future cash flows from both classes — Publishing and Recorded — so a bond is never tied to a single income stream. The underlying rights stay with the rights holder; only the future receivables are assigned.
Cash flows generated by the underlying song — melody & lyrics — from mechanical, performance, sync and digital royalties. Market size: $9.9B global publishing net revenue (2024).
Cash flows generated by the sound recording — from streaming, downloads, physical sales, sync licensing (film/TV/ads/games) and neighbouring / performance rights. Market size: $29.6B global recorded net revenue (2024).
Listen & pay
Live · Streaming · Movie, Radio & TV
CMOs (GEMA, …) & distributors
TXT acquisition focus · FOM 2026-1 · Luxembourg compartment
Publishers · labels · authors · artists
Cash flow: up to 24 months delay until payout to rights holders.
“Royalty cash flows — not music rights.”
Music is already an uncorrelated asset — sitting directly at the cash flows avoids the rate, cost and inflation effects that come with owning rights, making the return profile more resilient.
The structure sits at the very top of the royalty stream: the future receivables are assigned directly to the issuing vehicle through a purchase and assignment agreement — no ownership of the rights, no operating burden. Returns are driven primarily by how much the music is consumed.
Hipgnosis: Music Business Worldwide / Billboard, 2024.
Ownership brings obligations: the catalogue has to be marketed, administered, controlled and monitored. Those costs are hard to predict — with interest-rate, cost and inflation risk on top.
An assignment of future receivables directly to the issuing vehicle — no ownership, no operating burden. Returns are driven by how the music is used.
Buying the rightsHigh — valuations fall as rates rise
Buying the cash flowsLow — GEMA tariffs adjust; live +16.8% (2024)
Buying the rightsHigh — active catalog mgmt, A&R, valuation risk
Buying the cash flowsLow — rights holder keeps admin & distribution
Buying the rightsHigh — advisory fees 3%+ p.a., A&R, legal
Buying the cash flowsLow — approx. 2% p.a.
Buying the rightsDrawdown — Hipgnosis −43% (2021→2024)
Buying the cash flows0% historical default; FOM-2023-1 & FOM-2025-1 above plan
Buying the rights20–30 years — buying the catalogue
Buying the cash flows~5 years — buying the cash flows
Until now, this asset class has been difficult to access: opaque catalogues, months of due diligence and large private subscription amounts – in practice reserved for the majors and specialist funds. The Future of Music Bonds turn it into listed, fixed-rate notes that can be subscribed for straightforwardly. The structure attaches at the very top of the royalty stream: the future receivables are transferred directly to the issuing vehicle by way of a true sale with assignment.
Since 2021, four Future of Music Bonds have been issued. Two were redeemed in full and on schedule. The two outstanding bonds are currently being serviced as planned – both interest and principal payments have been made punctually to date. With FOM 2026-1, the subscription period for the next issue opens on 7 September 2026.
Data in. Cash out. Fully automated — AI-driven, scalable, institutional-grade asset financing across the funnel.
Clients and assets enter the platform — classified, imported and eligibility-checked.
Every catalogue is stress-tested commercially and verified legally before pricing.
Contracts are generated, signed and executed — through to securitization.
Continuous performance, cash-flow and investor & rights-holder reporting.
Four steps from first look to tracked returns: review the open bond and its terms, subscribe from €100,000 through guided onboarding, receive the fixed 8.00% coupon each year — and track performance in the Investor Portal.
Still have questions? invest@twlvxtwlv.com
FOM bonds are designed for experienced and professional investors, high-net-worth individuals and family offices, from a minimum investment of EUR 100,000.
A diversified basket of music royalties from established catalogues — contractual cash flows from streaming, broadcast and performance.
In music royalty financing there is delay, not default — collecting societies and distributors keep paying regardless of the rights holder’s situation. At maturity 99.1% is recouped (0.9% delay rate), rising to 99.6% after remediation and prolongation; shortfalls are settled via Global Assignment.
Through the TXT Score — a two-layer model (data-driven baseline plus expert overlay) built on 14 years and 10B+ transaction-level data points, calibrated conservatively at the 30th percentile.
Each bond is a securitization under the Luxembourg Securitisation Law — structured as a purchase and assignment of future receivables into a bankruptcy-remote Luxembourg SPV. Royalties are paid directly into the compartment by collecting societies (e.g. GEMA) and distributors. Custodian: Société Générale Luxembourg; paying agent: Société Générale S.A., Frankfurt; clearing: Clearstream Banking AG.
twelve x twelve (TXT) acts as Reference Basket Advisor to the issuer — sourcing and evaluating catalogues, advising on the composition of the Reference Basket and monitoring performance over the term. The bonds are issued by Opus – Chartered Issuances S.A., Luxembourg, acting for the respective compartment. Distribution is conducted as investment brokerage through Effecta GmbH; TXT acts as its tied agent pursuant to § 3 (2) WpIG. TXT does not hold ownership positions in rights or cash flows at any time.
Quarterly investor reports plus monthly monitoring through the TXT Investor Portal, and a quarterly CEO letter.
Investments can be started directly online — or in a call with our team to walk through the current bond.