A firm co-founded by Octone Records head James Diener and backer Howard Lipson is looking to provide musicians with funding payouts worth between $5 million and $20 million.
Titled Alignment Artist Capital, the venture is being funded by asset manager BlackRock.
After dishing out structured investments, Lipson and Diener will take between 10% and 20% of the artist's total income over four to five years. Alignment won't have an equity stake in any assets.
The cash is for established artists, rather than newcomers, and aims to help "global music creators realise their vision, build their audience and expand their brands".
Said Diener: "What we’re certainly not going to say is ‘Here’s the money, we’re now an investor in the record label. We’ll give the artist and their entity financing so they can go build a record label.”