Kobalt sells catalog to new KKR enterprise, Chord, for $1.1 billion

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We told you so!

Kobalt Capital has right now (October 19) confirmed that funding big KKR has acquired the KMR Music Royalties II portfolio for roughly $1.1 billion.

KKR is teaming with co-investment accomplice Dundee Partners – the funding workplace of the Hendel household – to purchase the catalog, which comprises over 62,000 copyrights throughout a number of genres.

The transaction has been accomplished by Chord Music Partners, a platform established by KKR with Dundee Partners.

KKR says it is going to additionally home different music belongings it has bought over the previous 12 months inside Chord; these belongings probably embody the bundle of rights that KKR acquired from songwriter Ryan Tedder in January.

Music technique agency mtheory was instrumental within the improvement of Chord.

Kobalt Music Publishing will proceed to administer and repair the works in Fund II below a multi-year settlement.

KMR Music Royalties II owns copyrights developed by SONGS Music Publishing – together with hits by The Weeknd and Lorde – which Kobalt Capital’s managed fund acquired in late 2017 for round $160 million.

“We are thrilled to purchase this diverse collection of iconic songs. We look forward to investing in the success of this music and working collaboratively with Kobalt and the artists and songwriters who created it,” mentioned Jenny Box, Partner at KKR.

“This transaction positions us with significant scale, which we will continue to grow by providing flexible, creative capital to music rights owners. Across KKR, we are investing in innovative technology, media and entertainment businesses that are connecting fans to music in new ways and we are excited about how this can enhance the value and reach of these songs.”

Kobalt Capital Chief Investment Officer and Kobalt Founder & Chairman Willard Ahdritz mentioned: “When we launched Kobalt Capital in 2011, we wanted to work with music we loved and would continue to live on for many decades to come. Our announcement today acknowledges this focus, our predicted market development and the great work we have done at KCL. I am also proud that creators and rights owners put their belief in us to take care of their timeless music and represent it well. We are excited to welcome KKR and Dundee Partners as Kobalt Music clients as the new owners of the Fund II works.”

Kobalt Capital CEO Johan Ahlström added: “This agreement represents a great outcome for our investors and, just as importantly, the ownership of these copyrights will be transferred seamlessly to new investors who share our commitment to putting creators first and being respectful stewards of great music.”

“Kobalt Music Publishing will continue to act as the core administrator and synch licensing partner for the Fund II portfolio,” mentioned Kobalt CEO, Laurent Hubert. “We are excited to work with KKR, Dundee Partners and the many songwriters we have partnered with for years as we continue to deliver market leading service to all stakeholders to grow the reach of the music we all love.”

KKR is investing by way of its Dislocation Opportunities Fund and sure different personal credit score funding funds and automobiles.

Kobalt Capital was suggested by Russell’s. Music technique agency mtheory suggested KKR and Dundee Partners on the transaction. Latham & Watkins LLP and FTI Consulting suggested KKR and DLA Piper, Manatt, Phelps & Phillips, LLP, Jefferies LLC and Inkling Capital, LLC suggested Dundee Partners.

Dundee Partners is the funding workplace of the Hendel household.

The Hendels have beforehand made investments in corporations comparable to Partisan Records, Knitting Factory Entertainment, and Left Music Publishing.

The new KKR enterprise, Chord, is totally separate to an alliance that KKR introduced earlier this 12 months with BMG.

That partnership with BMG is claimed to have over a billion dollars to spend on music copyrights, however is but to publicly announce a significant acquisition.Music Business Worldwide

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