Warner Music Group and private investment giant Bain Capital are launching a $1.2 billion joint venture to acquire “legendary” music catalogs across both recorded music and music publishing.
MBW understands that roughly half of the $1.2 billion is made up of debt, half with cash, with equal liability on both sides of the JV.
WMG and Bain Capital said on Tuesday (July 1) that they will source and acquire the catalogs together, while WMG will manage all aspects of marketing, distribution, and administration.
The funds might be deployed swiftly: Warner and Bain are reportedly mulling the acquisition of the Red Hot Chili Peppers’ recorded music catalog for around $350 million.
According to the statement issued on Tuesday, “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”.
The statement added that the new “strategic venture will provide artists and songwriters with opportunities to preserve and expand the reach of their catalogs, ensuring their legacies are well cared for”.
Goldman Sachs and Fifth Third Bank will serve as joint lead arrangers to the joint venture.
According to Bain’s website, the firm had over $185 billion in assets under management as of September 30, 2024.
“Iconic artists and songwriters choose WMG to grow their legacies and introduce their art to new generations through impactful and innovative campaigns.”
“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.
Added Kyncl: “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 catalogs.”
“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.”
Angelo Rufino, Bain Capital
Angelo Rufino, a Partner at Bain Capital, added: “Timeless music content continues to sit at the center of consumer entertainment.
“Stewardship of catalogs 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.”Music Business Worldwide
