How it works. Five steps.
Spotify, YouTube, Meta and others pay royalties into our distribution account.
About 20% of three years of the song's projected royalties, paid to the artist in cash and growth services, such as marketing.
Before the artist is paid, until the advance is recouped: about 8 months in our model. Then 30% until year 7.
Plus your year-one preferred return: 12% Growth, 9% Core, 7% Income.
Recouped money funds new advances. Growth investors share in the profits this creates, with a target IRR of 20%+.
And one caveat on each.
It's predictable.
A song's next twelve months are the easiest to forecast. We advance only against those.
Sized on trailing royalties, never the peakPredictable, not fixed. Bad years are planned for, not ruled out.
It grows.
The portfolio, not the song. In our model capital turns about 1.5 times a year.
About 8 months to recoupGrowth needs a steady flow of new songs.
It's spread thin.
The average advance is about EUR 2,000.
About 50 artists per EUR 100,000It's backed by real money.
The royalties, paid by the platforms into our distribution account before the artist. The artist keeps the song.
Paid at source by the platformsYou own the income, not the song.
It moves on its own.
Streaming does not follow stocks, bonds or property.
12-month cycles. Rule changes reprice next cycleIt does follow platform rules and the dollar.
The upside is open.
The downside is limited by the 1:5 cover rule and by short cycles. Growth investors share the upside.
Royalty uplift from distribution, growth services and creatorsMost songs don't grow. The ones that do carry the tail.
Five engines. One fixed promise to you.
The return engines, operating and financial, belong directly to SONOR Capital. They protect your preferred return, which is fixed by contract. Growth investors also share in the profits they create.
Investors commit capital once. SONOR delivers pools of underwritten royalty receivables continuously, instead of one deal at a time.
In our model an advance and its fee recoup in about 8 months at 100% of the chosen songs, so each euro can fund about 1.5 advances a year.
Recouped capital funds new advances. Artists can draw again once half is recouped, like a renewable line paid from streams.
Once an advance is recouped, 30% of the chosen songs' royalties stays with us until year 7 from signing. Income on capital already returned.
Seasoned pools of royalty receivables from many independent artists can be sold to institutional buyers, the market behind more than USD 12.9 billion of music-royalty bonds since 2020.
Goldman likes the pipes. SONOR sits in the pipe, not on the catalogue.
Simplified. The favoured label reflects Goldman Sachs' view of listed platforms and live companies, not of StreamAdvance. On a phone, swipe sideways.
CHF 100,000. What it looks like.
Core class, at its CHF 100,000 minimum. These are examples, not promises.
Swipe the chart sideways.
| What happens | When | You receive |
|---|---|---|
| Advanced across ~50 artists | Month 0 | CHF 100,000 out |
| Capital + 9% | Month 12 | CHF 109,000 |
| If reinvested each year | Year 2 | CHF 118,810 |
| Year 3 | CHF 129,503 | |
| Year 4 | CHF 141,158 | |
| Year 5 | CHF 153,862 | |
| Works out to | 9% a year |
CHF 280,000 at month 12, the 12% preferred return. Then a share of the profits, with a target IRR of 20%+.
CHF 107,000 at month 12, the 7% preferred return. Minimum ticket on request.
Illustrative only. Reinvestment is optional and each new cycle is priced again. Real results depend on the songs, the platforms and the exchange rate, and can be lower, including loss of capital.
Every listed asset had a bad year. The median music asset did not.
For a three-year allocation, the number to watch is the swing: how far a bad year sits below the average. Stocks earned more on average, then lost a fifth to a third in one year. SONOR's figure is a target range, not a realised return.
Illustrative. Indices 2021 to 2025 (Nasdaq-100 and MSCI World in USD, euro bonds and EU real estate in EUR). Swing = average year minus worst year, in percentage points. *Music royalties: median life-of-rights asset, 2017 to 2021, Cornell study of Royalty Exchange deals, a different and earlier window; no index exists. In the same study the bottom tenth of single assets lost 42.8% in 2018, which is why we spread every ticket over about 50 artists. **EU private credit: an indicative gross yield range of about 7 to 9% from manager and bank commentary, not a realised-return index, so no worst-year bar. SONOR: target range, not realised returns, no track record.
In twelve months, one of these puts cash back in your account.
CHF 100,000 in. At month 12 our approach returns your capital in cash, then pays the preferred return. Listed assets show a paper value somewhere in a range, and nothing comes back unless you sell.
Illustrative. SONOR classes: targets, paid only out of portfolio profit, capital can be lost, no track record. Growth shows the 12% preferred return plus a target share of profits toward a 20%+ IRR. Listed assets: range from the worst to the average year of 2021 to 2025, paper value. Months 12 to 18: your first-cycle capital and preferred return are already back in cash, and anything you re-commit is six months into a second cycle. **EU private credit: indicative gross yield, capital still outstanding.
Markets fell in 2022. Music revenue kept growing.
Inflation, rate rises and war in Europe hit stocks, bonds and listed real estate together. Streaming is a monthly subscription habit, and it kept paying. That is the case for a decorrelated income stream.
Illustrative. Asset bars: worst single year in 2021 to 2025. Music: global recorded music revenue growth (IFPI), which is the market, not a SONOR return. Sources: IFPI Global Music Report; Cornell study of Royalty Exchange deals; Pictet and Northleaf commentary on European private credit.
What can still hurt us
A change in how platforms pay can cut income for a cycle.
Royalties are paid in USD. A weak dollar lowers what we collect.
More tracks share the same payout pool, and fake streams dilute it.
We have no funded history yet. A few songs can move the result.
Four things it isn't.
We hold for a year, not forty.
You hold the cash a song makes. The artist keeps the song.
Spread over about 50 artists. The cycle makes the money.
Your money is locked until month 12.
Frequently asked questions
How do investors earn a return?
Through three classes. Year-one targets: Growth 12% preferred return plus a share of profits, with a target IRR above 20%. Core 9% and Income 7% fixed preferred returns. These are targets, not promises, and capital can be lost.
What are the minimums?
CHF 250,000 for Growth, CHF 100,000 for Core, and Income on request.
When does the offering open?
On 10 January 2027, after eligibility, KYC and AML checks.
Can investors lose money?
Yes. Returns are paid only out of portfolio profit and we have no track record yet. Capital can be lost.
Apply for details.
Tell us who you are. We will contact you when the full offering opens, by 10 January 2027. Family offices, private credit funds and qualified investors.
Prefer email? Write to apply@sonorcapital.com
The offering is for qualified and professional investors only, subject to eligibility checks. See our privacy policy.