We price music catalogues with precision and make them investable — as fixed-coupon bonds, secured by recurring royalty cash flows.
Music is an established, resilient asset class — carried by recurring royalty payments from hundreds of millions of paying listeners worldwide. What has been missing is the infrastructure to make these cash flows investable at scale. twelve x twelve is the solution.
global recorded-music revenue in 2025, up +6.4% year-on-year
people paying for a music streaming subscription worldwide
of recorded-music revenue now comes from streaming
publishing royalties collected in 2024, up +7.2%
After the piracy-era decline of the 2000s, streaming rebuilt the industry. The music market has now grown for 11 consecutive years, and royalty collections are at record highs.
Crucially, the growth is recurring and global: paid subscriptions make up 52.4% of recorded revenue — predictable, contract-based cash flows.
The music bonds provide exposure to future royalty cash flows: the future receivables are transferred from the rights holders directly to the issuing vehicle through a purchase and assignment agreement. Investors do not acquire shares in the rights themselves. Those cash flows arise across two distinct rights classes:
Royalties earned each time a track is streamed on services like Spotify, Apple Music or YouTube.
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 sound recording — from streaming, downloads, physical sales, sync licensing (film/TV/ads/games) and neighbouring / performance rights. Market size: $31.7B global recorded-music revenue in 2025 (+6.4%).
Cash flows generated by the underlying song — melody & lyrics — from mechanical, performance, sync and digital royalties. Market size: €12.6B global creator collections in 2024 (+7.2%).
“Royalty cash flows — not music rights.”
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.
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.
Until now this asset class sat behind high barriers — opaque catalogues, months of diligence and large private tickets, effectively reserved for majors and specialist funds. The Future of Music bonds turn it into a listed, fixed-coupon instrument open to direct subscription — each catalogue priced by the data-driven TXT Score.
Tradable, real-asset royalty cash flows — subscription like any listed bond.
Denominated — no FX exposure, incl. the France & Netherlands expansion from Q3 2026.
Historical default rate — “no default, only delay” (99.1% recouped at maturity).
No single-asset dependency — risk spread across rights holders, genres, vintages and royalty streams.
Since 2021, four Future of Music bonds have been issued. Two were repaid in full and on time; two are running on plan.* The next, FOM 2026-1, opens for subscription on 31 August 2026.
Every asset in our portfolio goes through a proven due diligence process — data-driven and standardised.
We bring rights holders and their catalogues into our pipeline as assets — and steadily grow the supply of investable music with predictable royalty cash flows.
Against our eligibility criteria, we assess every asset — objectively and data-driven — on quality, performance and fit, before it enters the portfolio.
Our proprietary forecasting model is trained on real settlement data from collecting societies and distributors. It projects each catalogue’s future cash flows before we acquire it.
We verify rights, assignments and GEMA / distributor entitlements — securing the legal basis of every asset before it enters the Reference Basket.
Each Future of Music bond is a fixed-coupon note secured by a diversified basket of music royalties. The next opens for subscription on 31 August 2026; four form our track record.
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.