A group of investors led by Blackstone is set to acquire a significant majority stake in Citrin Cooperman, renowned for owning one of the music industry’s most crucial valuation firms. According to a report by the Financial Times, this strategic deal values the company at an impressive enterprise value of billion. As part of this landmark transaction, Blackstone is purchasing the stake held by New Mountain Capital, showcasing the growing interest in music valuation firms amidst the booming music catalog market.

In the past decade, as the music industry’s catalog market has surged in value, Citrin Cooperman has positioned itself as a leading authority in music intellectual property valuation. Their Music Economics and Valuation Services practice, co-founded by Nari Matsuura and co-led by Barry Massarsky, has been instrumental in guiding buyers and sellers through the complexities of valuing musical assets. The firm has notably collaborated with influential entities such as Hipgnosis Songs Fund, Primary Wave, and Reservoir Media, managing around 750 catalog valuations, which collectively exceed .5 billion between 2021 and 2022.

However, the expertise of Citrin Cooperman extends well beyond music catalog valuations. Established in 1979, the firm has built a reputation as a trusted advisor, providing a wide range of tax advisory and accounting services to over 15,000 clients worldwide. The firm’s comprehensive service offerings include strategic planning, business consulting, and risk management, ensuring that clients receive tailored solutions that meet their unique financial needs.

In late 2023, Citrin Cooperman found itself at the center of controversy involving its client, Hipgnosis Songs Fund. The fund announced it would cancel a planned quarterly dividend payment to shareholders, attributing this decision to Citrin Cooperman’s significant reduction of expectations regarding retroactive payments from the Copyright Royalty Board’s Phonorecords III ruling by over 50%. This claim, described by Hipgnosis as an “industry-wide” issue, was contested by other catalog owners who argued that there had been no recent updates related to Phono III, suggesting that the situation was specific to Hipgnosis and Citrin Cooperman.

Throughout this transaction, Deutsche Bank Securities Inc. is acting as the financial advisor to Blackstone, while Kirkland & Ellis LLP and Gibson, Dunn & Crutcher LLP are providing legal counsel. On the other side, Guggenheim Securities, LLC is the lead financial advisor for New Mountain and Citrin Cooperman, with Koltin Consulting Group also advising both parties. Legal advice for New Mountain and Citrin Cooperman is being provided by Simpson Thacher & Bartlett LLP, Zukerman Gore Brandeis & Crossman, LLP, and Hunton Andrews Kurth LLP.

Alan Badey, the CEO of Citrin Cooperman, expressed enthusiasm about the deal, stating, “We are thrilled to have reached an agreement with Blackstone for their investment in Citrin Cooperman as we embark on our next chapter of growth. This partnership will enable us to enhance our service offerings and leverage technology to uphold our dedication to a best-in-class firm culture and exceptional client experience. We extend our gratitude to New Mountain for their invaluable support and partnership in nurturing our business.”

Eli Nagler and Kelly Wannop, both senior managing directors at Blackstone, praised the firm’s achievements, stating, “The partners and staff of Citrin Cooperman have exemplified an unwavering commitment to excellence and client service, establishing the firm as a leader in the industry. We are eager to invest in this business to help it continue delivering high-quality offerings in the future.”

Managing directors Andre Moura and Nikhil Devulapalli from New Mountain reflected on their partnership with Citrin Cooperman, stating, “We take pride in our successful collaboration with Citrin Cooperman and express our gratitude to the management team, partners, and staff for all we have achieved together over the past three years. We look forward to witnessing Citrin Cooperman continue to flourish for the benefit of all its clients and stakeholders.”