Sony Music Group (SMG) has teamed with global institutional investor GIC – Singapore’s sovereign wealth fund – on an investment partnership.
Under the partnership, they will aim to acquire and amplify high-quality music catalogue assets across a range of genres. It's reported that the investment will be between $2 billion and $3 billion.
“The partnership reflects the two organisations’ shared commitment to the expanding global music sector,” said a statement. It combines GIC’s long-term capital and global investment experience with Sony Music Group’s operational expertise and long history in the music industry.
“SMG’s extensive artist and songwriter relationships, global network and capabilities will support the identification, acquisition and management of potential assets,” added the statement.
Kevin Kelleher, chief operating officer, Sony Music, said: “Partnering with GIC brings together long term capital and Sony Music Group’s operational capabilities to acquire and manage premier catalogues, creating new opportunities for artists’ and songwriters’ music globally.”
The music ecosystem is a resilient sector with attractive long-term growth prospects
Girish Karira
“As a long-term investor, GIC seeks to be a creative and flexible capital partner to strategic industry leaders like Sony,” said Girish Karira, head of integrated strategies group, GIC. “The music ecosystem is a resilient sector with attractive long-term growth prospects and we are excited about the next stage of streaming monetisation through premiumisation and subscriber growth in emerging markets.
“This investment alongside Sony Music Group, a leading global player with deep industry expertise and strong operational capabilities, builds on GIC’s longstanding relationship with Sony Group, which we look forward to further strengthening.”
GIC, which was established in 1981, is the manager of Singapore’s foreign reserves. As part of its long-term strategy, it has been investing in the music industry – across companies, catalogues and music-focused funds – since 2017.
According to the announcement, GIC aims to build partnerships with industry-leading operators and identify opportunities across both established and emerging markets.
Singapore’s sovereign wealth fund has been investing in Japan – where Sony Corp is based – since the 1980s and continues to seek opportunities to expand its partnerships in the region.
Sony Bank Inc is also participating in this investment partnership.
FOLLOW 
