Chord Music Partners Secures $400 Million Investment from Searchlight Capital: A Strategic Move in the Music Industry
Chord Music Partners, the owner of song catalogues from artists like ZZ Top and Ellie Goulding, is securing a substantial investment from private equity firm Searchlight Capital. The deal involves Searchlight injecting $400 million into Chord, which is supported by Universal Music Group (UMG), a major record label. This agreement, expected to be announced soon, will further strengthen Chord's position in the music industry.
Chord Music Partners, which also holds the rights to music by artists such as Lorde, The Weeknd, and John Legend, recently acquired a stake in the catalogue of Morgan Wellen. The company is a joint venture between Dundee Partners, a family office, and UMG. Previously, KKR, a prominent private equity firm, was a shareholder in Chord until last year when it sold its stake at a valuation of $1.85 billion.
The music industry is witnessing a surge in deals involving valuable music rights, with a growing demand for premium entertainment content pushing prices higher. Established in 2021, Chord is actively expanding its catalogue holdings and is expected to announce additional acquisitions in the near future. This strategic move aligns with UMG's vision of partnering with entities that share a commitment to preserving iconic songs and recordings for long-term growth.
Sir Lucian Grainge, chairman and CEO of UMG, emphasized the importance of collaborating with like-minded partners to enhance the commercial and creative value for songwriters and artists associated with Chord. The company's focus on identifying timeless music assets and fostering growth opportunities underscores its dedication to building a sustainable future for the music industry.
In conclusion, Chord Music Partners' partnership with Searchlight Capital marks a significant milestone in its journey to expand its music catalogue holdings and drive long-term value for artists and songwriters. The collaboration with UMG and strategic investments in iconic music rights position Chord as a key player in the evolving landscape of the music industry.