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<blockquote data-quote="Jake Rickman" data-source="post: 145812" data-attributes="member: 8521"><p>Hi Asil, </p><p></p><p>A fascinating topic. I will go away and do some research. </p><p></p><p>I will say that my understanding of the general premise behind the acquisition of a musician's catalogue by private equity firms is that they are a steady source of earnings uncorrelated from market trends. The reasoning behind this is that people will listen to Bruce Springsteen regardless of what is happening in the world. </p><p></p><p>My thinking therefore is that private equity investment in this asset class will increase where there is more market volatility and investors are looking for a long-term place to park their cash that is unlikely to be affected by short-term themes like inflation or asset devaluation (which are macro issues private equity firms are currently dealing with). It would be good to get some numbers to back this up (or invalidate my theory).</p></blockquote><p></p>
[QUOTE="Jake Rickman, post: 145812, member: 8521"] Hi Asil, A fascinating topic. I will go away and do some research. I will say that my understanding of the general premise behind the acquisition of a musician's catalogue by private equity firms is that they are a steady source of earnings uncorrelated from market trends. The reasoning behind this is that people will listen to Bruce Springsteen regardless of what is happening in the world. My thinking therefore is that private equity investment in this asset class will increase where there is more market volatility and investors are looking for a long-term place to park their cash that is unlikely to be affected by short-term themes like inflation or asset devaluation (which are macro issues private equity firms are currently dealing with). It would be good to get some numbers to back this up (or invalidate my theory). [/QUOTE]
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