Venue management may not seem as glamorous as iconic classic rock catalogs; however, the live entertainment sector is incredibly appealing when music and sports enthusiasts are flocking to venues and paying record ticket prices. Legends? acquisition of AEG?s ASM Global venue management division, first announced in 2023, finally closed in August after Legends paid a $3.5 million civil penalty for anti-trust violations. As detailed by Billboard in November 2023, when private equity partner Onex informed AEG of its intention to sell its 35% stake in ASM Global, AEG decided to sell its share as well. This venue management arm aligns seamlessly with Legends? extensive business operations, which include planning, ticket sales, hospitality, merchandise, and strategic partnerships. Given the robust recovery of live entertainment post-pandemic, the sale price ultimately reflected double the valuation of ASM Global at the time AEG and Onex merged their facility management assets in 2019.

Following a six-year tenure on the London Stock Exchange, shareholders of the Hipgnosis Songs Fund overwhelmingly voted?backed by over 99.9% of shares?to divest the pioneering music royalty fund?s portfolio of songs to Blackstone. Completed in July, this deal marked the conclusion of a tumultuous year for both shareholders and Hipgnosis’ board, which began seeking external buyers in 2023 due to the fund’s prolonged low stock price and significant mismanagement issues that led to a shareholder revolt. Blackstone’s offer provided investors with $1.31 per share, valuing the fund’s market capitalization at $1.584 billion, surpassing Concord’s competing offer of $1.25 per share. The global investment titan now holds Hipgnosis Songs Fund’s extensive catalog of 65,000 songs, as well as private music assets within Hipgnosis Songs Assets and Hipgnosis Song Management, which serves as the investment advisor for both portfolios. Blackstone has committed to enhancing data analytics, investor education, and improving transparency to better inform investors about music as an asset class.

Another significant transaction in 2024 involved the privatization of the French music company Believe, as nearly 95% of its shares were acquired by a consortium of investors that includes prominent venture capital firm TCV, private equity firm EQT X, and Believe’s own founder, chairman, and CEO, Denis Ladegaillerie. Initially listed on the Paris Euronext stock exchange in June 2021, the consortium proposed to purchase a majority of Believe’s shares at ?15.00 ($16.10) per share in February?a 21% premium over the preceding closing price. This strategic move aimed to enable the company to execute its value-creation plan more effectively and accelerate its growth as an independent player supporting both artists and label clients, thereby consolidating its status as a leader in the French and European markets. Although Warner Music Group briefly considered acquiring Believe in March, estimating a bid of at least ?17.00 ($18.24) per share, they ultimately withdrew, citing insufficient time for due diligence.

Private equity firm New Mountain Capital successfully finalized its acquisition of the performance rights organization BMI in February, with the deal estimated to be valued between $1.3 and $1.5 billion. As the world?s largest performing rights organization, BMI represents a key music-adjacent investment for New Mountain Capital, which manages $45 billion in assets. The firm also holds a stake in Citrin Cooperman, which acquired Barry Massarsky?s Massarsky Consulting in 2022. As a part of the acquisition, BMI?s affiliated songwriters and publishers received $100 million from the sale proceeds this spring, acknowledging their crucial role in BMI?s success.

In November, shortly after acquiring the hit-filled catalog of Hipgnosis Songs Fund featuring tracks by Red Hot Chili Peppers, Neil Young, and Shakira, Blackstone-owned Hipgnosis Song Management (HSM) utilized these assets as collateral for a $1.47 billion music rights asset-backed security. This marked HSM’s second ABS deal, valuing the assets from the former fund’s catalog, alongside an additional $700 million in debt, at approximately $2.3 billion. The funds raised through the ABS will be allocated towards reducing Hipgnosis? current debt, covering transaction fees, and establishing a reserve account, among other financial commitments.

Private equity firm KKR has had a longstanding presence in the music sector, notably through a catalog-acquisition collaboration with BMG from 2009 to 2013 and continuing from 2021 onward. While catalog acquisitions were previously dominant, there is now a significant influx of investment into the live music industry. In a world where concert ticket prices continue to rise, the live events sector presents an enticing opportunity for an investment giant like KKR, which manages $190 billion in assets and seeks favorable returns. Founded in 2017 by Providence Equity Partners and James Barton, the founder of the iconic Liverpool nightclub Cream, Superstruct manages notable festivals like Sziget in Budapest and Wacken Open Air, the largest heavy metal festival in Germany. KKR agreed to purchase Providence’s stake in Superstruct in June for an estimated ?1.3 billion ($1.39 billion).

While other contemporaries of Queen capitalized on a booming market for classic rock catalogs, the British band remained a notable outlier for years. However, the release of the Oscar-winning biopic Bohemian Rhapsody in 2018 reignited immense interest in their music, propelling timeless hits like ?Bohemian Rhapsody,? ?We Will Rock You,? and ?Radio Ga Ga? to new heights, defying the typical decline in popularity that all music faces over time. The band’s patience proved advantageous; if the film had only achieved moderate success, they would have received a solid return for their music rights. Nevertheless, the film’s unprecedented success, which earned Rami Malek an Oscar for his portrayal of Freddie Mercury and stands as the highest-grossing music biopic ever, significantly enhanced the value of Queen’s catalog. Ultimately, Sony Music paid a staggering $1.27 billion for Queen’s recorded music and publishing rights, making it the highest amount ever for an artist?s catalog.

In the wake of rising interest rates post-pandemic, music companies that have been aggressively acquiring catalogs have turned to asset-backed securities (ABS) to raise substantial capital. Through an ABS, a music company can consolidate assets like music publishing rights and recorded music catalogs, subsequently selling notes backed by the royalties generated by those assets. In October, Concord executed one of the larger ABS deals, securing $850 million from an existing ABS that swelled to $5.1 billion following the acquisition of Round Hill Music Royalty Fund and Mojo Music. This ABS is backed by royalties from publishing, recorded music, and related assets from artists including Carrie Underwood, Genesis, Phil Collins, R.E.M., and Creed. The proceeds will be utilized to redeem $500 million from a series of 2023 notes and acquire approximately $217 million of assets for reintegration into the ABS?s collateral pool.

While a $600 million investment at a $1.2 billion valuation may not be the largest catalog transaction of the year, it certainly made waves in 2024, despite being overshadowed by Queen (see above). Sony Music?s remarkable payment for half of Michael Jackson’s recorded music and music publishing catalogs tells only part of the story. The deal, which values the full catalog at over $1.2 billion (and potentially as high as $1.5 billion, according to some sources), excludes royalties from the Broadway productions and other theatrical adaptations featuring Jackson’s music. Although the Jackson estate may have been eclipsed by Queen’s noteworthy deal, the remaining 50% interest in Jackson’s catalog is likely to appreciate significantly in value in the coming years, especially with the upcoming release of a biopic titled Michael, directed by Antoine Fuqua and slated for October 2025, which is expected to further boost Jackson’s royalties.

In March, HarbourView Equity Partners successfully raised $500 million through an asset-backed security initiative led by global investment powerhouse KKR. During this fundraising, CEO Sherrese Clarke Soares stated, ?This capital will allow us to further our mission of investing in assets and companies driven by premier intellectual property while striving to ensure that creators are appropriately valued for their contributions to the world.? In the following months, HarbourView made strategic investments in independent studio Mucho Mas Media and acquired the rights to works from singer-songwriter James Fauntleroy and producer-songwriter Noel Zancanella. The Newark-based firm is also financing a biopic about hip-hop pioneer Queen Latifah.

Pink Floyd’s long-anticipated catalog deal, which had faced numerous delays and hurdles, was finally realized in 2024, a testament to the band’s notoriously tumultuous relationships. Each member reportedly engaged independent legal representation, which contributed to the lengthy process. After being actively marketed for over two years, Sony Music successfully acquired the legendary psychedelic rock band?s recorded music catalog for $400 million. This deal encompasses an iconic collection of albums, including The Wall and The Dark Side of the Moon, along with name, image, and likeness rights, though it does not cover music publishing assets.

In February, Universal Music Group made a strategic investment of $240 million for a 26% stake in Chord Music, a catalog acquisition platform developed by Dundee Partners. This innovative partnership means that the world’s largest music company now oversees the distribution and publishing administration of Chord’s catalog, which includes managing 60,000 copyrights. UMG can leverage its collaboration with Chord to facilitate funding for future catalog acquisitions, thereby conserving its own resources. The valuation of Chord soared to $1.85 billion following UMG’s investment

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