Shamrock in market with $400m intellectual property fund

The fund's strategy will focus on acquiring IP products in film, television, music and video games.

Shamrock Capital Advisors is targeting $400 million for its latest intellectual property fund, according to a Form D fundraising document.

Shamrock Capital Content Fund II was launched in December and has already attracted interest from major LPs. State of Wisconsin Investment Board committed $50 million last year and Rhode Island State Treasury has also committed $30 million to the fund, as Buyouts reported.

The Content strategy is designed to “acquire or finance existing entertainment intellectual property rights across the diverse group of assets that have been through their initial window of release,” according to Shamrock’s website. These include filmed entertainment, television programming, music publishing rights, recorded music masters and video games, among others. The investment size is $5 million to $50 million. The firm makes control or minority investments.

Shamrock closed its inaugural Entertainment IP Fund in 2016 on $250 million, according to the firm’s website. A source with knowledge confirmed this fund was the first Content fund.

Principal Patrick Russo runs this strategy for Shamrock. He joined the firm in 2014 to build it out. Other members of the fund’s team include Jason Sklar, Andrew Landenberger, Nick Khoury, Tara Bereche, Kun Shu, Peter Rivera and Melissa Beam, according to Rhode Island documents.

Rhode Island public documents also had details about Fund I’s performance and Fund II’s fee structure.

As of September 30, Fund I had committed $164 million across 12 transactions. Seven investments were in television and film, totaling $77.4 million. Five were in music, totaling $86.6 million. Prominent acquisitions of the fund included 100 percent ownership of Spyglass Entertainment’s library, which consists of 15 films, including The Sixth Sense.

As of June 30, 2019, Fund I’s net fund level internal rate of return was 7 percent.

Fund II has a management fee of 2 percent of capital commitments during the investment period, which will reduce to 2 percent of capital contributions for investments not disposable after the investment period is over. Fees will be paid quarterly in advance.

The fund’s carry is 20 percent, with an 8 percent hurdle. Shamrock and its staff will invest at least $5 million in the fund itself.

Los Angeles-based Shamrock was founded in 2010. It is a spin-out of Shamrock Holdings, the family office of Roy Disney, the nephew of Walt Disney.

Shamrock’s principals are Stephen Royer, William Wynperle, Andrew Howard, Michael LaSalle, Russo and Alan Resnikoff.

Shamrock did not respond to a request for comment.

Action Item: Read Rhode Island’s presentation on Shamrock Capital Content Funds I and II here.

Update: this story has been updated with confirmation that the EIP Fund and the Content Fund I were the same entity.