Warner Music Group has unveiled a new $1.2 billion joint venture with investment firm Bain Capital, the two companies announced Tuesday, with the companies targeting iconic recording and music publishing catalogs.
WMG and Bain Capital will identify potential catalog acquisitions together, the companies said, with WMG handling marketing, distribution, and administration.
“Iconic artists and songwriters choose WMG to grow their legacies and introduce their art to new generations through impactful and innovative campaigns,” WMG CEO Robert Kyncl, said in a statement. “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.”
The new joint venture is just the latest move in a catalog acquisition market that had grown increasingly competitive over the past several years. Back in April, the Universal Music Group-backed Chord Music Partners acquired a minority stake in country superstar Morgan Wallen’s recorded catalog from his record label Big Loud. Last month Sony Music Publishing bought publishing company Hipgnosis Songs Group. WMG has been active in the space too, buying a controlling stake in Tempo Music Investments back in February after co-launching the company back in 2019. Since Launch, Tempo had acquired rights to songs recorded by Bruno Mars, Twenty One Pilots and Adele among others.
Goldman Sachs and Fifth Third Bank are serving as lead arrangers for the new joint venture, WMG and Bain Capital said.
“Timeless music content continues to sit at the center of consumer entertainment,” Bain Capital partner Angelo Rufino said in a statement. “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.”