In 2022, a song released nearly four decades earlier returned to the top of the charts.
Kate Bush’s “Running Up That Hill” found a new generation of listeners after appearing in Stranger Things. Its resurgence was an extraordinary cultural moment, but it also demonstrated something important about the music business: a song’s commercial life does not necessarily end when its original chart run does.
Established music can continue generating revenue through streaming, radio, live and public performances, advertising, gaming, film and television. In some cases, a prominent placement can introduce a song to an entirely new audience and create renewed activity across several channels. This enduring earning potential has attracted growing interest in music rights as an alternative asset class.
The ICM Crescendo Music Royalty Fund provides eligible investors with exposure to a portfolio of music-related rights and royalty streams. However, a familiar song or impressive streaming total does not necessarily make an investment attractive. The specific rights owned, the price paid, the reliability of royalty collection, portfolio concentration and the terms of the investment all influence the potential outcome.
For Raintree Financial Solutions, that distinction is essential. A compelling theme may be the starting point for a conversation, but the underlying investment must still be carefully evaluated based on its structure, risks and suitability for the individual investor.
This article looks at how music royalties work, why older songs can remain commercially relevant and what investors should understand when considering a private music royalty fund.
How Music Royalty Investing Works
A piece of recorded music generally involves two primary copyrights:
- Composition rights cover the underlying lyrics, melody and musical arrangement.
- Master rights cover a specific recorded version of the song.
These rights may be owned in full or in part by songwriters, performers, record labels, music publishers, producers and other rights holders. Revenue can then be generated when the applicable music is streamed, played publicly, broadcast, reproduced or licensed for another use.
ICM Crescendo’s strategy can acquire full or partial interests in these rights and related royalty streams. Investors purchase units of the Trust rather than receiving direct ownership in a particular song or catalogue. The Fund’s economics therefore depend on the specific rights acquired, the ownership percentage, royalty administration arrangements and the revenue sources attached to each investment.
This distinction matters. A recognizable song does not automatically make an attractive investment. The price paid, historic revenue, ownership share, catalogue age, collection arrangements and expected future usage all influence the potential outcome.
Why Established Music Catalogues Continue to Attract Attention
Paid Streaming Supports a Large Revenue Ecosystem
Spotify reported 293 million premium subscribers in the first quarter of 2026, an increase of 9 per cent from the previous year. This scale is relevant because paid subscriptions contribute to the revenue pool used to compensate rights holders across the music industry.
A larger subscriber base does not mean every song or catalogue benefits equally. Royalty income can vary based on listening share, geography, platform pricing, royalty rates, ownership type and negotiated agreements. Changes to platform policies or payment methodologies can also affect the amount ultimately received by a rights owner.
Film, Television and Culture Can Reintroduce Older Songs
ICM’s May 2026 update highlighted the use of 4 Non Blondes’ “What’s Up” in a new Street Fighter trailer. The placement brought a song originally released in the 1990s back in front of a global audience, illustrating how film and media can renew interest in established music.
A well-known example occurred in 2022, when Kate Bush’s 1985 song “Running Up That Hill” played a prominent role in the fourth season of Stranger Things. The exposure introduced the track to a new generation and helped propel it to No. 1 on the UK Official Singles Chart, 37 years after its original release.
A major film, television or advertising placement can potentially generate synchronization licensing revenue while encouraging renewed streaming, social engagement and public performance. The financial effect is not automatic, however. It depends on factors such as the rights owned, the percentage of ownership, the terms of the licensing agreement and whether listener interest continues beyond the initial placement.
This reactivation effect helps explain why established music can remain commercially relevant decades after its release. Songs are continually rediscovered through movies, television series, biopics, sporting events, gaming, advertising and social media. From an investment perspective, the important consideration is not only whether a song becomes popular again, but whether the portfolio owns the applicable rights that may participate in the resulting royalty activity.
Institutional Interest Brings Scale and Competition
In May 2026, Sony Music Publishing agreed to acquire Recognition Music Group’s complete portfolio of more than 45,000 songs in partnership with GIC. The official announcement did not state a purchase price, while the Financial Times reported a value of nearly US$4 billion.
Primary Wave also announced the final close of a US$2.225 billion music intellectual property fund. Its investor base included insurance companies, pension funds, endowments and large family offices.
Transactions of this size demonstrate that music rights are being evaluated at an institutional scale. They can also make the acquisition market more competitive. More capital may support liquidity for catalogue sellers, but it can also increase purchase prices. Careful valuation remains important because even a culturally significant catalogue can produce disappointing results when acquired at an overly optimistic price.
What the Latest ICM Crescendo Update Shows
A Broader Portfolio Across Songs, Artists and Genres
As at April 2026, ICM’s portfolio snapshot reported:
- 6,564 songs across 48 catalogues
- More than 500 artists and multi-genre exposure
- More than $369 million in net fund assets under management
- 80 per cent year-over-year fund size growth
The range of artists, genres and catalogues may reduce dependence on the performance of one song. It does not eliminate the risk of loss, declining royalty income, valuation changes or limited liquidity.
Fund size growth should also be considered separately from investment performance. Assets under management can increase through investor subscriptions and new acquisitions, as well as changes in asset value.
Recent Acquisitions Include Established Global Music
The May update highlighted a Ne-Yo-related acquisition, noting that “So Sick” had surpassed 1.1 billion Spotify streams and that several catalogue tracks continued to attract significant streaming activity nearly 20 years after release.
The update also featured Together Publishing, which includes songs associated with Don Omar, Lucenzo and Vegedream. “Danza Kuduro” was reported to have surpassed two billion Spotify streams and 1.6 billion YouTube views. ICM noted the catalogue’s connections to global streaming, sports, nightlife and live public performance.
These acquisitions illustrate two characteristics that can be relevant when assessing a music royalty portfolio:
- An established history of listener engagement
- Multiple potential uses across platforms, markets and cultural settings
Historic streaming activity provides useful information, but it is not a forecast. Audience preferences can change, platform economics can evolve and the Fund may own only a portion of a song’s overall royalty stream.
A Few Key Considerations
A recognizable song or strong streaming history can make a music catalogue appealing, but neither tells the full investment story. Long-term results depend on the underlying rights, the price paid for them and how the Fund is structured and managed. Investors should consider several key questions:
- What rights does the Fund own? Music copyrights can be divided among songwriters, performers, publishers, record labels and other parties. The Fund may own full or partial interests in composition rights, master recordings or specific royalty streams. Its income depends on the exact rights acquired and the Fund’s ownership percentage.
- What was paid for the expected income? Even a well-known catalogue may not produce attractive results if it was acquired at a price that assumes overly optimistic future revenue. Performance may be influenced by streaming activity, licensing opportunities, consumer preferences and the Fund’s ability to identify and acquire rights at appropriate valuations.
- How diversified is the portfolio? Exposure across artists, songs, genres, release periods, platforms and revenue sources may help reduce reliance on any single asset. However, diversification does not eliminate risk, and revenue may still be affected by changes in technology, licensing practices or music consumption.
- How are royalties collected and valued? Music royalties can involve multiple platforms, territories, contracts and collection organizations. Payments may be delayed, disputed or difficult to verify. Because music rights are not publicly traded, valuations also rely on assumptions and may not reflect the amount that could ultimately be realized in a sale.
- What restrictions apply to the investment? Private funds have different characteristics than publicly traded investments. Distributions are not guaranteed and may vary based on royalty income, expenses and other factors.
Music royalties may offer access to revenue sources outside traditional public markets, but they also involve meaningful risks that both advisors and investors should be aware of.
Where Music Royalties May Fit
Music royalties offer an interesting example of how private investments can provide access to assets and revenue sources that are not typically available through public markets.
At Raintree Financial Solutions, the starting point is not whether an investment theme is compelling. It is whether the investment itself is appropriate for the individual investor. That requires reviewing the current offering memorandum, understanding the rights and economics behind the strategy, and considering how the investment may affect the liquidity, concentration and risk profile of the broader portfolio.
Speak with a Raintree Private Wealth Advisor before making any investment decision.
Disclaimer:
This article is provided for general informational purposes only. It does not constitute investment, legal, accounting or tax advice, an offer to sell securities or a solicitation to buy securities. Alternative investments involve significant risks, including possible loss of capital, limited liquidity, long holding periods, valuation uncertainty, concentration, fees, and changing market conditions. Past performance is not indicative of future results. Eligibility and suitability requirements apply. Always speak with an advisor before making any investment decisions.