{"id":110618,"date":"2021-06-11T16:43:12","date_gmt":"2021-06-11T15:43:12","guid":{"rendered":"https:\/\/www.musicbusinessworldwide.com\/?p=110618"},"modified":"2022-02-03T11:02:40","modified_gmt":"2022-02-03T11:02:40","slug":"primary-wave-raises-375m-investment-from-oaktree-capital-sells-minority-stake","status":"publish","type":"post","link":"https:\/\/www.musicbusinessworldwide.com\/primary-wave-raises-375m-investment-from-oaktree-capital-sells-minority-stake\/","title":{"rendered":"Primary Wave raises $375m investment from Oaktree Capital, sells minority stake"},"content":{"rendered":"

MBW\u2019s Stat Of The Week is a series in which we highlight a data point that deserves the attention of the global music industry. Stat Of the Week is supported by Cinq Music Group<\/a>, a technology-driven record label, distribution, and rights management company.<\/p>\n

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Primary Wave Music just got a major cash injection.<\/p>\n

The company has finalized what it calls a “strategic relationship” with funds managed by Oaktree Capital Management.<\/p>\n

Oaktree Capital has committed to invest up to $375 million into Primary Wave Music in exchange for a minority interest in the music company.<\/p>\n

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Primary Wave has\u00a0raised over $800m<\/a>\u00a0in the past four years via two IP funds: a $300m fund in 2016, backed by Black Rock, and a further $500m-plus fund launched last year.<\/p>\n

As such, today Primary Wave owns substantial interests in the song catalogs of icons such as\u00a0Ray Charles<\/a>,\u00a0Bob Marley<\/a>,\u00a0Whitney Houston<\/a>, Burt Bacharach, Smokey Robinson, the Four Seasons, <\/a>and Fleetwood Mac’s Stevie Nicks<\/a>.<\/p>\n

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In November last year, speaking on the MBW Podcast, Primary Wave\u2019s Founder & CEO Larry Mestel revealed that Primary Wave was \u201cfinishing off\u201d that $500m-plus second fund.<\/p>\n

Citing people with knowledge of the matter, Bloomberg<\/em> reports<\/a> that the Oaktree Capital investment coincides with the closing of Primary Wave\u2019s as yet-unannounced third fund.<\/p>\n

Those same sources tell Primary Wave that the investment “sets the stage for Primary Wave to consider a public offering of its fund operation”.<\/p>\n

In a media statement issued today (June 11), Oaktree says that it will “help strengthen Primary Wave\u2019s financial positioning as an asset manager of iconic music and this substantial funding will add to Primary Wave\u2019s already formidable war chest for future catalog acquisitions”.<\/p>\n

After completing the Oaktree deal, Primary Wave says that it now manages $1.5 billion in cash and assets.<\/p>\n

This deal was finalized by Primary Wave\u2019s Founder & CEO Larry Mestel and Oaktree\u2019s Co- Chairman & Chief Investment Officer Bruce Karsh and Managing Director & Co-Head of North America Brian Laibow.<\/p>\n

\u201cThe Primary Wave team is honored to have such a respected financial institution and talented team supporting our efforts.”<\/p>\n

Larry Mestel, Primary Wave<\/span><\/p><\/blockquote>\n

Larry Mestel, Founder & CEO of Primary Wave said: \u201cThe Primary Wave team is honored to have such a respected financial institution and talented team supporting our efforts.<\/p>\n

“Bruce Karsh and I have had a working relationship for over 15 years and he has the unusual combination of business savvy and creative sensibility towards music.”<\/p>\n

\u201cThis is an exciting new chapter for the entire company as we continue to grow and evolve our business.\u201d<\/p>\n

\u201c<\/strong>As a true music lover myself, I\u2019m dedicated to the company\u2019s growth and future success.\u201d<\/p>\n

Bruce Karsh, Oaktree\u00a0<\/span><\/p><\/blockquote>\n

Bruce Karsh, Co-Chairman and Chief Investment Officer of Oaktree Capital, said: \u201cI\u2019ve long admired the business model and success that Larry has built for Primary Wave and saw this Partnership as a unique opportunity to diversify our investment portfolio in a growing and uncorrelated asset class.<\/p>\n

\u201c<\/strong>As a true music lover myself, I\u2019m dedicated to the company\u2019s growth and future success.\u201d<\/p>\n

\u201cThe value that the Primary Wave team adds to a hit song by a classic artist like Whitney Houston or Bob Marley is hard to compete with.”<\/p>\n

Brian Laibow, Oaktree<\/span><\/p><\/blockquote>\n

Laibow said: \u201cThe value that the Primary Wave team adds to a hit song by a classic artist like Whitney Houston or Bob Marley is hard to compete with.<\/p>\n

\u201cIt is quite impressive how many legendary music catalogs Primary Wave has acquired over their 15 years in business and we are proud to be aligned with Larry and his team for this next chapter.\u201d<\/p>\n

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<\/a><\/i><\/a><\/figure>Cinq Music Group\u2019s repertoire has won Grammy awards, dozens of Gold and Platinum RIAA certifications, and numerous No.1 chart positions on a variety of Billboard charts.\u00a0<\/a><\/strong>Its repertoire includes heavyweights such as Bad Bunny, Janet Jackson, Daddy Yankee, T.I., Sean Kingston, Anuel, and hundreds more.<\/a><\/strong><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Larry Mestel says: “This is an exciting new chapter for the entire company as we continue to grow and evolve our business.\u201d<\/p>\n","protected":false},"author":15,"featured_media":110627,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[233,124425],"class_list":["post-110618","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-primary-wave","tag-stat-of-the-week"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/posts\/110618","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/comments?post=110618"}],"version-history":[{"count":0,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/posts\/110618\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/media\/110627"}],"wp:attachment":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/media?parent=110618"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/categories?post=110618"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/tags?post=110618"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}