Ingenious today announced that its two Music VCTs have joined forces with Real World Records Ltd ("Real World Records") to form a new company, "VCT Investments Ltd". The newly formed company will have a total funding budget of £1.75 million and the capacity to sign and release a roster of 10-15 artists. The deal leaves the first Ingenious Music VCT fully invested, two and a half years after its fundraising close.
Having raised £15 million, Ingenious Music VCT has committed funding to 17 deals which, combined with Ingenious Music VCT 2's £26 million, represents the largest independent source of A&R investment in the UK. Ingenious Music VCT 2 has completed 15 deals to date.
Real World Records was launched by Peter Gabriel and WOMAD in 1989 to provide talented artists from around the world with state-of-the-art recording facilities and audiences beyond their geographic region. Artists include: The Blind Boys of Alabama, Nusrat Fateh Ali Khan, Afro Celt Sound System and Sheila Chandra. Since then, the company has achieved considerable success with sales of nearly 6 million albums, with 15 of the albums breaking the 100,000 units barrier.
Duncan Reid, Commercial Director of Ingenious, said:
"We are delighted to announce that Ingenious Music VCT is now fully committed. The deal with Real World Records is indicative of our commitment to securing innovative investments in the UK music industry. Real World Records' strength in niche artists and digital distribution ideally positions it to capitalise on the changing climate of entertainment rights and revenues."
Mike Large, Chief Operating Officer of Real World Records, said:
"This relationship gives us the opportunity to continue to expand our diverse catalogue and invest in new music from all corners of the world".
Notes to editors:
About Ingenious
Ingenious, which was founded in 1998 by Patrick McKenna, former Head of the Media and Entertainment Group at Deloitte and Touche and chairman and CEO of the Really Useful Group, is a specialist media investment and advisory business with six principal operating subsidiaries: Asset Management, Consulting, Corporate Finance, Investments, Securities and Ventures.
As the market leader in media investment and strategy, Ingenious provides the full range of services to companies in the media sector, from strategic and corporate finance advice to private equity funding, as well as providing innovative investment solutions for the private investor.
About Venture Capital Trusts (VCTs)
Provided that shares in a VCT are held for at least five years, qualifying investors receive income tax relief at the rate of 30% on the amount subscribed for VCT shares up to a maximum of £200,000 in any one tax year. Dividends and gains on the disposal of Shares are currently exempt from tax in respect of investments not exceeding £200,000 in any one tax year.
Fishburn Hedges
Paul French/Michelle James
Tel: 020 7839 4321
Ingenious Media
Duncan Reid
Tel: 0207 319 4000