Music industry

Matt Pincus’ Music Raises $200 Million to Invest Exclusively in the Music Industry

Photo credit: Markus Winkler

Songs Music Publishing founder Matt Pincus has raised $200 million (including capital he contributed) for a new venture that will invest solely in music industry businesses and assets.

Matt Pincus, 49, whose Songs Music Publishing was sold to Kobalt for $160 million in December 2017, today unveiled the $200 million funding — and his plans for the installment. JS Capital Management (founded by Jonathan, the son of George Soros), LionTree (which previously partnered with Pincus) and the Schusterman family’s investment operation led the rise.

As for LionTree’s pre-deal with Pincus, Music came onto the scene in 2019 as a joint operation with the investment and merchant bank. Since then, Music has taken stakes in companies such as cloud-based music creation platform Splice and “financial rights organization” HIFI, though those interests will remain separate from the current $200 million business. dollars of the same name, according to Bloomberg.

According to the same source, the just-announced iteration of Music will primarily seek to make plays in the $25 million range, focusing (and striving for board seats from administration) on the objectives of “music technology, artist management and infrastructure”. (Pincus’ previous board appointments include Splice, the Public Theater and the Songwriters Hall of Fame.)

However, Pincus (who would be free to choose his investments) also signaled an openness to pursue catalog buyouts, label buys and even start-up deals. Despite a (relative) downturn in the song rights space amid broader economic difficulties, capital is still reaching the catalog segment, including in the form of relatively small moves by obscure players.

And it goes without saying that startups – especially those operating at the intersection of music and non-fungible tokens (NFTs) – are plentiful right now, while multiple options exist for label buys, especially in emerging markets.

Building on that point, headlines from the past two months attest to the funding that continues to flow into (and around) the music industry despite the aforementioned state of the broader economy.

Since early April, SiriusXM has paid $150 million for Conan O’Brien’s podcast company, GoDigital Media Group has invested another $100 million for catalogs, Pollen has announced a $150 million Series C, and BandLab closed a $65 million Series B round. , to name a few.

Meanwhile, BMG, Warner Music and One Media iP are reportedly competing to buy Pink Floyd’s back catalog, which could fetch $500 million. Presumably, this rumored deal won’t take into account the announced $750 million that Warner Music and BlackRock pledged in February for “modern evergreens.”