Warner Music Group and private investment firm Bain Capital are launching a joint venture for catalogue acquisitions.
The JV will deploy up to $1.2 billion to spend on “legendary music catalogues” across both recorded music and music publishing.
The partnership was formed through equal equity commitments from WMG and Bain Capital.
This new strategic venture will provide artists and songwriters with opportunities to preserve and expand the reach of their catalogues, according to the announcement.
Warner Music Group and Bain Capital will together source and acquire the catalogues, while WMG will manage all aspects of marketing, distribution and administration.
“By combining WMG’s worldwide infrastructure and relationships with Bain Capital’s global resources and financial capabilities, the venture is well-positioned to set a new standard as the preferred partner for renowned musical talent,” said the statement.
The streaming economy has helped classic catalogue to reach new audiences and it is set for further growth.
Augmenting our deep expertise and global infrastructure with Bain Capital’s financial prowess and belief in music will make us the destination of choice for preeminent catalogues
Robert Kyncl
“Iconic artists and songwriters choose WMG to grow their legacies and introduce their art to new generations through impactful and innovative campaigns,” said Robert Kyncl, CEO, Warner Music Group. “Augmenting our deep expertise and global infrastructure with Bain Capital’s financial prowess and belief in music will make us the destination of choice for preeminent catalogues.”
“Timeless music content continues to sit at the centre of consumer entertainment,” said Angelo Rufino, a partner at Bain Capital. “Stewardship of catalogues has never been more important as artists and songwriters deserve support to enhance the value of their work while delivering fans new and exciting collaborations. Warner Music Group, with its deep creative resources and partnership culture, is the ideal partner for Bain Capital to work alongside as we grow and safeguard the world’s iconic music.”
Goldman Sachs and Fifth Third Bank will serve as joint lead arrangers to the joint venture.
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