New York-based Matt Pincus is a extremely revered entrepreneur within the music enterprise: in any case, he based SONGS Music Publishing, which not solely signed The Weeknd, Diplo, and Lorde – however ended up promoting to Kobalt Capital for round $160 million in 2017.
After exiting SONGS, Pincus quietly launched an funding home centered on the music enterprise, in partnership with Liontree.
Since 2019, that enterprise – MUSIC – has made investments in companies equivalent to music-making platform Splice, music monetary providers firm HIFI, the ticketing platform DICE, and others. (Pincus is at present a member of the board of administrators of Splice and HIFI.)
In the present day (Could 26), Pincus has introduced he’s taking MUSIC to the following stage.
Calling itself “the primary ever diversified funding firm centered completely on music companies”, MUSIC has raised $200 million in “preliminary” capital because it formally re-launches as a partnership between Pincus and Liontree, plus two new traders – JS Capital Administration and Schusterman Household Investments.
The corporate says it is going to “concentrate on taking long-term positions in a wide range of music enterprises”.
Primarily based in New York, MUSIC says it is going to look to take long-term positions in firms working throughout three areas of the music enterprise: (i) the know-how sector; (ii) document labels and music publishers; and (iii) firms “devoted to Web3 innovation”.
As the corporate’s co-founder and CEO, Pincus will deal with capital allocation, investments, and operations on behalf of MUSIC, in addition to oversee governance of ongoing investments.
“To make the proper investments in music, it is advisable guess on expertise with versatile capital, prepared for the long run.”
“Institutional traders have been flocking to music due to the uncorrelated returns and robust progress the business gives. However for many traders, music is simply one other asset that matches of their portfolio,” says Pincus.
“At MUSIC, we put money into expertise, creativity, repertoire and innovation. Good individuals reside all throughout the capital stack – from enterprise to progress to non-public fairness to yield. To make the proper investments in music, it is advisable guess on expertise with versatile capital, prepared for the long run.”
Aryeh B. Bourkoff, founder and CEO of LionTree, co-founder of MUSIC, stated: “We launched MUSIC to put money into the evolution of the music business and be a strategic associate for artists and entrepreneurs within the area.
“Matt’s independence, observe document, and the relationships he’s constructed throughout the ecosystem give him a novel perspective on the place music is headed, and we’re excited to associate with JS Capital and Schusterman on this thematic.
“LionTree is more and more centered on bringing long-term capital along with individuals and concepts to maneuver industries ahead, and we imagine music is a very dynamic business with a number of avenues for progress and transformation over time and thru market cycles.”
Salil Seshadri, Chief Funding Officer of JS Capital Administration, stated: “JS Capital is targeted on partnering with nice administration groups which are offering options in massive and, typically, fragmented markets.
“Within the case of MUSIC, the partnership with Matt and Aryeh permits us to be a part of altering traits in content material creation, know-how, and the continued shift in the direction of experiences over issues.
“Matt is a confirmed operator and LionTree is best-in-class in relation to providing artistic recommendation and options to companies throughout know-how, media, and leisure—the important thing vectors throughout which MUSIC will function.”
The catalog of SONGS Music Publishing shaped a part of a set of copyrights bought final 12 months by Kobalt Capital to a enterprise led by KKR, Chord Music, for $1.1 billion.Music Enterprise Worldwide