A dwell efficiency from Lorde, one of many many professionals with works within the Chord Music Companions portfolio. Picture Credit score: Pridia Brasil
The catalog area isn’t cooling off simply but: Chord Music Companions has scored a “strategic funding” from Searchlight Capital Companions and doubled down on plans to scoop up extra music IP.
The self-described “main administration and acquisition platform for music mental property” Chord unveiled the backing in a proper launch at present. Proper off the bat, what jumps out right here is that Common Music Group (UMG) itself revealed stated launch; the foremost took a minority stake in Chord in early 2024.
This identical transaction noticed KKR (which had established Chord in 2021 alongside Dundee Companions) exit the funding automobile. Now, with UMG’s catalog-purchase and -buildout experience factoring prominently into Chord’s technique, totally different events are apparently getting in on the IP motion.
Moreover, they give the impression of being to be making decidedly giant bets on the asset class. UMG, Chord, and New York Metropolis-headquartered Searchlight opted towards publicly attaching a greenback quantity to at present’s transaction. However sources informed us that the agency’s funding is appreciable – to the tune of no less than $500 million within the present spherical alone.
At current, the sum is with out official affirmation; Searchlight’s PR contact slightly tersely declined to weigh in after we reached out for remark in regards to the half-billion-dollar determine. (Facet be aware: Searchlight accomplice Darren Glatt has joined Chord’s board.)
In any occasion, the seemingly sizable funding underscores the continued curiosity and confidence in music property – regardless of the billions upon billions of {dollars}’ price of already-wrapped offers. To make sure, it was solely in July that Warner Music disclosed a $1.2 billion catalog JV with Bain Capital.
That’s, after all, a large tranche, and the majors are hardly alone in remaining on the hunt for music IP. Naturally, these factors and big catalog worth tags are nonetheless elevating questions on the opportunity of a song-rights bubble.
Although time will reveal whether or not IP purchasers overpaid, rightsholders positively aren’t content material with cashing in on streaming, scoring an occasional sync placement, and hoping for the perfect.
The likes of Main Wave (which debuted a Bob Marley immersive expertise in July) and Pophouse Leisure (which is teeing up a Kiss avatar band) have been making non-traditional monetization waves for some time now.
Nevertheless, others are additionally working to bolster their monetization capabilities by way of IRL occasions and rather more. Final month, Reservoir invested in Len Blavatnik-backed “immersive leisure firm” Lightroom. And in June, Common Music went forward and emphasised plans to interrupt “into each dimension of leisure and client life” beneath a diversification-focused JV with Patrick Whitesell.
