Music Royalties as an Alternative Investment: Valuation Risk, Governance and the Hipgnosis–Saregama Contrast

In this paper, we explore how music royalties have become a major alternative investment, attracting over $20 billion in private equity funding. By comparing the UK’s Hipgnosis Songs Fund with India’s Saregama Ltd., we show how bad valuation models and weak governance rather than falling music streams caused major financial trouble for Hipgnosis. We contrast Hipgnosis's fund-based approach with Saregama's steady, corporate growth strategy. Finally, we outline a clear risk framework covering valuation, copyright laws, streaming platforms, and catalog aging to help investors safely navigate this asset class.