Joins Dundee Partners to form long-term strategic partnership to manage and acquire world-class music IP
UMG Manages the Publishing and Distribution of Chord's Existing Catalog of Recordings Worldwide with Over 60,000 Music Rights
KKR will sell a majority stake in Chord to current shareholder Dundee Partners and its investor consortium, with UMG holding a minority stake.
SANTA MONICA, Calif. and HILVERSUM, Netherlands , Feb. 20, 2024 /PRNewswire/ — Universal Music Group (UMG), the world leader in music-based entertainment, and Dundee Partners, the investment firm of the Handel family, announced today that , UMG acquired a 25.8% stake in Chord Music Partners (Chord) for USD 240 million (approximately EUR 223 million at the current EUR/USD rate), valuing Chord at USD 1.85 billion. announced a deal valued at US$1 million.
Founded in 2021 by KKR and Dundee Partners, Chord is a pure catalog of the best music intellectual property (IP). Chord's portfolio includes The Weeknd, Ryan Tedder/OneRepublic, David Guetta, Lorde, Kid Cudi, Diplo, Jimmy Jam & Terry Lewis, Ellie Goulding, ZZ Top, John Legend, Contains works from some of the world's most iconic artists and songwriters, including Entee. 1 pilot and many others.
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UMG and Dundee Partners have entered into a new long-term strategic partnership to actively manage Chord rights through UMG's global network and to acquire additional catalog through Chord in the future. Chord's music publishing rights are managed through Universal Music Publishing Group (UMPG) and his recorded music is managed through his UMG Virgin Music Group (VMG).
Sir Lucian Grainge, Chairman and CEO of Universal Music Group, said: “Our passion for identifying iconic songs and recordings that stand the test of time and deliver long-term growth'' It's essential to find a partner who shares this with us, and that's why we're so happy.” Music rights in collaboration with Stephen and Sam Handel and Dundee Partners, with the support of UMPG's Jody Garson, Virgin's Nat Pastor and his JT Myers leadership, and experienced creative executives around the world. No one can do better than this. Our team looks forward to creating maximum commercial and creative value for Chord's songwriters and artists and building for the future. ”
“We are excited to partner with the Handel family at Cord for a variety of reasons,” said Boyd Muir, Executive Vice President, Chief Financial Officer and Operations Officer, Universal Music Group. Second, this new structure provides an efficient means for future catalog acquisition without significant capital allocation through a combination of leverage and partner capital. We are the perfect partner to take an opportunistic and flexible approach to future growth, and we are equally bullish about the long-term outlook for music.”
“We are excited to partner with Universal Music Group and embark on the next exciting chapter for Chord,” said Sam Handel, managing principal at Dundee Partners and co-founder of Chord. By combining the financial acquisition vehicles of We are grateful to the KKR team for their partnership and building a strong foundation for Chord and its future success.”
“We are grateful for the opportunity to create significant value for our investors by collaborating with so many leading artists and building Chord into a differentiated, scaled portfolio. We believe that Dundee and UMG will drive further value creation for artists and share in our commitment to respecting and stewarding artists' music,'' said Jenny Box, Partner at KKR. Stated.
Upon completion of the transaction, KKR will exit Chord, leaving Dundee Consortium and UMG with ownership of 74.2% and 25.8%, respectively.
As a leader in music-based entertainment, UMG is well positioned and has the resources to manage and grow Chord's existing copyright catalog. Meanwhile, UMG and Dundee Partners share a long-term vision for significant content acquisition, management and growth opportunities. A timeless music copyright catalog.
UMG was advised by Goldman Sachs, Kirkland & Ellis LLP and Freshfields. DLA Piper and Axinn, Veltrop & Harkrider LLP served as Dundee's legal advisors. Fifth Third Bank, National Association served as financial advisor and provided a commitment loan to Dundee and her UMG. Raine Group served as exclusive financial advisor and Manatt, Phelps and Phillips, LLP served as legal advisor to Chord Music Partners. Served as legal advisor to Latham & Watkins LLP, KKR.
About Universal Music Group
Universal Music Group exists to shape culture through the power of artistry. UMG is a global leader in music-based entertainment with a wide range of businesses engaged in recorded music, music publishing, merchandising, and audiovisual content. With the most comprehensive catalog of recordings and songs across all musical genres, UMG identifies and develops artists, producing and distributing the world's most acclaimed and commercially successful music. UMG is committed to artistry, innovation and entrepreneurship, fostering the development of services, platforms and business models to expand artistic and commercial opportunities for artists and create new experiences for fans. Masu. For more information, please visit www.universalmusic.com.
About Dandy Partners
Dundee Partners is the investment firm of the Handel family and has a long history of unwavering dedication to promoting arts and culture. The family is proud of its decades-long support of theater, most notably being the lead producer of the Broadway hit “Fela!” In addition to being a co-founder of Chord Music Partners, Dundee is also the majority owner of her Knitting Factory Entertainment, Partisan Records, and Kino Lorber. Beyond these efforts, the family continues to make strategic investments at the intersection of music and technology, shaping the evolution of industry and culture.
About KKR
KKR is a leading global investment firm providing alternative asset management, capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, hiring world-class talent, and supporting the growth of our portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit, and real estate assets, and has strategic partners that manage hedge funds. KKR's insurance subsidiaries offer retirement, life insurance and reinsurance products under the management of Global Atlantic Financial Group. References to KKR investments may include the activities of KKR-sponsored funds and insurance subsidiaries. For more information about KKR & Co. Inc. (NYSE: KKR), please visit KKR's website at www.kkr.com. For more information about Global Atlantic Financial Group, please visit the Global Atlantic Financial Group website at www.globatlantic.com.
Source Universal Music Group NV
