An investment group led by KKR is concluding an agreement to buy a ক 1.1 billion song catalog from Lord and The Weekend, a recent sign of a private equity-fueled land crowd for music hits.
Indie is in advanced talks to sell the catalog to a consortium led by music company Cobalt Keckel, which will take a majority, and the family office of Stephen Hendel, a former partner at Goldman Sachs, according to people familiar with the talks.
Negotiations have progressed and an agreement could be announced this week, these people said. The catalog also attracted bids from an Apollo-backed consortium and Todd Boheli’s Eldridge Industries.
Private equity groups have invested billions in the music industry as they look for places to allocate capital in a very low interest rate environment.
The year-round frenzy has only accelerated in recent weeks: Blackstone revealed on Tuesday that it would return a new $ 1 billion in funding to buy music rights with Hypnosis, and Apollo announced 1 1 billion in funding last week with former Morgan Stanley banker Sherris Suarez.
Private equity groups, specialist buyers such as Hypnosis, and big music labels have fought for a catalog of established artists who have enjoyed new leases in life for streaming music. Competition evaluations have effectively doubled prices over the past decade as artists, including Bob Dylan and Stevie Nix, have received cash.
KKR said earlier this year that it would work with BMG, one of the world’s largest music companies, to acquire music labels and catalogs. BMG chief executive Hartwig Masuch told the Financial Times that KKR would provide BMG with the financial fuel to compete for the best assets.
The company has also agreed to buy a majority of lyricist Ryan Tedder’s catalog this year.
KKR and Handel declined to comment. Billboard reported last week that KKR is a potential buyer of Cobalt’s catalog.