Towards the end of last year, MBW released the now infamous track: Here Come The Giants.
This was in reference to three heavyweights in the investment community – Blackstone, Apollo Global Management and KKR – who decided to funnel billions of dollars cumulatively into acquiring music rights.
Today (January 14) we learn that another big name in the world of finance – Pimco – is also entering the fray.
the FinancialTimes reports that Pimco entered into an alliance with BMG to jointly acquire the copyrights to the songs.
This alliance follows BMG’s separate pact with KKR – a partnership that recently concluded the rights acquisitions of John Legend and ZZ Top.
the FT cites sources suggesting that Pimco x BMG will seek smaller deals than those struck by KKR x BMG.
Yet MBW learns from prominent industry sources that Pimco has also begun funding another important part in the world of music rights acquisitions, with more details on this player’s business expected to emerge in the coming weeks.
The scale of Pimco is a big vote of confidence for the value of streaming-based music rights in 2022.
As we reported last year, KKR has a portfolio of assets under its management worth about $234 billion; Apollo Global Management has a portfolio of assets under its management worth about $455 billion; and Blackstone has a portfolio of assets under its management worth $649 billion.
In contrast, Pimco, headquartered in the United States, currently has a asset portfolio with a value that dwarfs the three aforementioned elements combined: $2.21 BILLION.
Among Pimco’s various investment businesses, the company is a global leader in actively managed bond funds. This may be of particular interest to the music industry right now.
Last month, private equity firm Northleaf Capital announced that it was raising $303.8 million by selling asset-backed securities (ABS) backed by music rights – including songs created by Pete Townshend for The Who and by country star Tim McGraw.
According to Bloombergthese titles will be supported by both publishing and sound recording rights, as well as other sources of revenue, on a total of 52,729 songs.
Toronto-based Northleaf acquired a stake in select music catalogs from Spirit in October in a $500 million deal.
MBW estimates – based on confirmed prices and information from industry sources – that at least $5.05 billion was spent on catalog and music rights acquisitions in the more than 60 deals. big budget that we reported on last year.
This figure includes deals for individual catalogs sold by artists and songwriters, as well as acquisitions of music rights portfolios (including those held by active labels/publishers) by companies from other companies.The music industry around the world