It used to be that buyers of music publishing catalogs were mainly publishers themselves. Today, instead of traditional publishers, the underlying funding for catalogs is likely to be private equity groups such a hedge funds, pension funds, or in our case – a syndicate of private investors pooling their money.

Investors who are flush with cash these days don’t have many options for SAFE places to put that cash to work. I know we’d all love to have that problem!! But think about it, with the economy and banking in shambles, and almost no return on investment available through traditional instruments (like CDs or T-Bills), there is real difficulty in finding investments that are safe, and will pay some nominal rate of return.

So private equity is turning to royalty-based assets like music-catalogs.

While the music business is certainly volatile and uncertain, royalty-based assets are fairly certain to recoup themselves over time. Even if an investor misses their projections by a few years, at some point the future royalties will probably recover most of the investment. So the investment is somewhat protected over the long haul, and if purchased correctly, may also return a compelling return on investment (ROI).

(Also, there are some healthy tax advantages that have been created for buyers and sellers, thanks to lobbying efforts of organizations like the Nashville Songwriters Association and NMPA).

These private-equity funds are creating a healthy market for catalogs and despite some naysayers (typically big traditional publishers who think these aren’t “real music people”), I would argue the situation is very good for songwriters, catalog owners, and the music industry in general:

1) These funds are infusing hundreds of millions of new dollars into our economy. That translates into new dollars reinvested into our friends, and keeping catalog values supported. In the case of songwriters, it’s allowing many the opportunity to “live to fight another day” or it’s allowing them to invest into new independent strategies.
2) These funds are bringing sober practices and new efficiency in collections. These new investors don’t drink too much of the music biz “Kool Aid” and are often more disciplined in their approach. Most of the music business is notoriously outdated in terms of efficiency and transparency – especially when it comes to collecting money. But as these new players demand more efficiency and information, there will be a value-add to our catalogs. But it will squeeze many big players who benefit from the inefficiencies.
3) Often times (e.g. Hearts Bluff Music) these are small groups of investors that are true music lovers and they are more in touch with their catalogs than the large publicly traded conglomerates. A few years ago I got a call from one of my investors saying, “my family and I are at Disneyland and we just heard a song we own. Are we getting paid for that?? I assured him we probably were!

Tune in for my next blog, “Multiples and Hillbilly Math.” In it, I’ll discuss what’s outdated about the term “multiples.”

Check it out! We’ve got a picture of Scott and the Parker clan hanging back stage with Robert “Kool” Bell. Definitely a Top 10 experience for the Hearts Bluff Music team.

If you’re interested in the Kool And The Gang/Van Halen tour click here!

Here at Hearts Bluff we are proud sponsors of NSAI, and through our sponsorship we attended various writer rounds at this year’s Tin Pan South.

Tin Pan South, for those who don’t know, is an annual songwriter festival held here in Nashville. At ten different venues all over town, there are tons of well-known songwriters just sitting on stools playing their tunes… which may happen to be #1 hits.

This year we checked out a few rounds. The first evening at 3^rd & Lindsley featured Jimmy Webb, Jack Tempchin, and Felix Cavaliere. Talk about legendary! It was something else to hear these guys play such classic songs. On the second night we were at Taps & Tapas to see Scooter Carusoe, Mindy Smith, Will Hoge, and Ashley Monroe. It was so packed that we stood on the porch outside to watch through the windows. The final round we attended was a stunner, with Barry Dean, Natalie Hemby, Trent Dabbs, and Ella Mae Bowen. What a great collaboration of old and new sounds. Each writer was unlike the other, and somehow it blended together so well.

Jim Tempchin at 3rd & Lindsley

Thanks, as always, to NSAI for hosting such a great event that allows so many people access to some of Nashville’s most talented residents.

Ella Mae Bowen, Trent Dabbs, Natalie Hemby, and Barry Dean at The Rutledge

“SESAC will accelerate domestic/terrestrial radio performance royalty payments from the traditional quarterly distributions to monthly distributions beginning over the next several months and plans to expand the monthly royalty distributions to other performance platforms later this year.” – sesac.com

By initiating monthly distributions, the value of SESAC catalogs just went up significantly. Because of the  time-value of money, any investment analyst knows there huge difference in receiving royalties on a monthly basis (versus quarterly or semi-annually). When you factor the effect of this over many years, there is a huge difference in pure “net-present” value.

Once writer and publishers realize this how much of their wealth is tied up in slow, antiquated royalty distributions, they are going to demand changes. If BMI or ASCAP follows suit, you will see a significant shift in underlying catalog values as this hidden wealth is released. The financial transparency of the music biz, is going to be dragged kicking and screaming into the 1990′s after all!!

click here to learn more

This Jennifer Lopez classic debuted on her album J.Lo and was a massive hit internationally. The album spent a total of six weeks on the Billboard Top 20 charts and eventually sold over 8 million copies worldwide.

The song was originally released as a pop/dance track, but some of you might recognize the re-mix version that J. Lo recorded with hip-hop aritst, Ja Rule. In March of 2002 the re-mix version spent a whooping 6 weeks at the #1 position on the Billboard Hot 100.

While different, both versions are staples to the Y2K generation. No cooler song was played at a high school or middle school dance during those first few years of the millennium.

It was another great trip out to the annual 30a Songwriter Festival in Seaside, Florida.

The Hearts Bluff team spent three days at the festival where we were pleased to sponsor The Boathouse stage. The space was cool, and the vibe and writers were fantastic.

Brian White, Karen, and Peter Sallis at The Boathouse

The Boathouse’s first round featured Brian White, his wife Karyn Williams, and Pete Sallis. Hallelujah! It was an inspirational round, followed by the hilarious masters of word play, David Olney and Tommy Womack. The night was finished up with a round of high class musicianship with David Ryan Harris and Randall Bramblett treating the crowd to some beautifully written pieces.

Elsewhere on Friday we were able to check out Daphne Willis at Caliza, and the Susanna Hoffs show at Fish Out of Water.

Teddy Gentry, Lenny, Joanna Cotton, and Greg Barnhill at Rep

We stopped by Rep to watch our friends Greg Barnhill and Joanna Cotten play with Lenny LeBlanc and Teddy Gentry. Greg played his Trisha Yearwood classic “Walkaway Joe.” Joanna followed with a hilarious and powerful number called “Time’ll Get Her.” Lenny sang his hit “Falling” and Teddy got the whole audience feeling emotional by performing the Alabama song, “Alabama’s My Home.” The crowd was so silent and enthralled you could hear a pin drop.

Both nights ended at the ASCAP-sponsored after-party at V Seagrove. It was a great atmosphere to mingle and say hello to friends from ASCAP, fellow sponsor Suntrust Bank, and many of the 30a songwriters themselves.

Saturday was another beautiful day at the outdoor venue Lyceeum. Matthew Sweet and the Bangles rocked out to a huge crowd. Yes, everyone still knows how to “Walk Like An Egyptian.”

Saturday night at the Boathouse, our very own Scott and Caryl Parker kicked off the first round. They debuted a number called “Say When” –  a cool perspective on the similarities of Jesus and Bartender… would’ve thought?!  Scott and Caryl’s daughter Jessie – an extremely talented singer/songwriter just making her way into the Nashville music scene – was invited up to play one of her own songs, “I-40 Mountain Spine.” There were also great performances by current Grammy Nominee Eric Brace and Tommy Womack.

Jessie Parker, Eric Brace, and Tommy Womack at The Boathouse

The next round featured a harmonious husband and wife duo who call themselves The Honey Dewdrops. A folksy round followed featuring another husband and wife duo called Over the Rhine, and Mary Gauthier accompanied by the amazing violinist Tania Elizabeth. Once again, the crowd was absolutely silent, hanging on every word.

Over The Rhine, Tania Elizabeth, and Mary Gauthier at The Boathouse

Sunday came all too soon, but the festival went out with a bang. At the outdoor venue Gulf Place, we caught two legends onstage, Rodney Crowell and Sam Bush.

The Sam Bush Band

Scott and Caryl kicked out the final evening at the boat house. Joining them was the fabulous Suzi Ragsdale, and the next round was a one man show featuring the great Jeff Black. The final Boathouse round featured three guys who are no strangers to country radio – Billy Montana, Joe Leathers, and Kyle Jacobs.

Caryl and Scott with Billy Montana, Joe Leathers, and Kyle Jacobs

To cap off a great weekend, we attended the final show at Caliza to watch Shawn Mullins and Chuck Cannon bring the house down. It was there that we met the man who organized the festival – Russel Carter. It was great to congratulate him on a job well done, and to say thanks for making it so rewarding to be a sponsor of the festival.

Three days really flew by, but we really enjoyed our time at the 30a Songwriter Festival. We mingled with old friends and made some great new ones. Every minute was a treat and we can’t wait to go back next year!

With the Christmas season upon us, we’d like to feature a modern Christmas classic.

There are just some Christmas songs that bring on the spirit of the holiday, and “Breath of Heaven” is one of them. The song was co-written by Amy and Chris Eaton and chronicles Mary’s thought process while she’s carrying baby Jesus. Amy Grant recorded it in 1992 and put it on her Home For Christmas album.

“Breath of Heaven” was a #1 single for Amy. It hit the top position on the Christian/Adult Contemporary charts in December of 1992 and helped the Home for Christmas album reach #1 on the Contemporary Christian, and Holiday charts as well.

Check out this video of Amy performing the song on this years CMA Country Christmas.

(Vince Gill is singing harmonies in this version, as if the song wasn’t amazing enough.)

Breath of Heaven has been covered by many artists, including by Jessica Simpson, Point of Grace, and Vince Gill.

It was an honor to sit among songwriting heroes and legends last night at the Nashville Songwriters Hall of Fame Dinner and Induction Ceremony. On the event’s 41st Anniversary, inductees included John Bettis, Thom Schuyler, and Allen Shamblin in the writer category, and Garth Brooks and Alan Jackson as artist writers.

The ceremony was a touching tribute to the songs written and the stories told. It was a great privileged to hear each writer talk about their backgrounds and how they found the inspiration to write such poignant songs.

The ceremony started by honoring Chris DuBois as songwriter of the year, Taylor Swift as artist/songwriter of the year (for the forth year in a row!), and “If I Die Young” by Kimberly Perry of The Band Perry as song of the year. Publisher David Conrad was awarded the Frances Williams Preston Mentor Award. It was remarked that he had a hand in over 186 Top 10 Country hit songs. Wow!

A brief intermission was given, and in a room full of 1000 industry members and their families you’ve never seen such mingling. The Hearts Bluff table was so glad to see friends of ours like previous inductee Kye Fleming, and Aaron Barker. We visited briefly with NSAI’s director of sponsorship, Stephanie Myers, and complimented her on a successful evening. We were even able to say hello to Emmylou Harris, sitting over at the next table.

Finally each of the five big inductees took to the stage to deliver their thanks, but not before being honored with a speech by a longtime industry friend, and performances of their best songs sung by a few fellow songwriters. For John Bettis we heard “Heartland,” and “Top of the World” performed by Lynn Anderson. Co-writers of Garth’s hits played “The River,” “The Thunder Rolls,” and “We Shall Be Free.” Taylor Swift sang a touching rendition of “Where Were You When The World Stopped Turning,” a song that Alan Jackson wrote to unite those hurting after 9/11. For Thom Schuyler, Lacy J. Dalton sang “16th Avenue,” which struck a chord in us, with our offices being on that exact street. Finally Allen Shamblin was given his moment in the spotlight and we heard Lionel Cartwright perform “The House That Built Me” and Wynonna was on hand to sing “I Can’t Make You Love Me.”

To hear all those songs, along with many eloquent speeches given, it was truly a treat for us. We work with brilliant songwriters on a daily basis and it was such a great  reminder of the gifts that have been given to these story tellers. So here’s to you, songwriters! Thank you for blessing each of us with the talent you’ve been given to express words as few can.

Hearts Bluff would again like to congratulate all of last night inductees for the well deserved honor!

The McGraw cuts have been included on over 7 million albums. Power ballads “Let’s Make Love” & “There Will Come A Day” were released on Faith Hill’s most popular album Breathe, selling over 8 million copies. The Chesney album, No Shirt, No Shoes, No Problem contains “On the Coast of Somewhere,” and has sold over 4 million albums.

His songs have touched the hearts of the millions who’ve heard them. We’re so grateful to add some of Bill’s songs to our Hearts Bluff catalog.

Hearts Bluff was able to check out some great shows and panels provided by Soundland – presented by Next Big Nashville. We heard some great discussions on the music biz and saw performances by today’s biggest up-and-comers.

The kick the event off we sat in on a panel discussing the success of the Civil Wars. We learned that it was a great, trustworthy, devoted team that believed in their artists and promoted them using out of the box methods. We went to other panels discussing the success of Noisetrade, the upcoming recapturing of copyrights, Kickstarter, the growing Rootmusic on Facebook, and a songwriter Q&A with the ever so talented Justin Townes Earl.

The shows offered a great chance to sample some great acts like M. Ward, Foster the People, Justin Townes Earl, and Apache Relay.

Thanks to Soundland for putting on a great event! We’re already looking forward to next year!