#United States #New York #Bain Capital #Warner Music #Music Catalog

Warner Music Group and Bain Capital's New Joint Venture

In a landmark move for the music industry, Warner Music Group (WMG) has teamed up with Bain Capital to announce the formation of a joint venture aimed at investing up to $1.2 billion into iconic music catalogs. This partnership, which features equal equity contributions from both WMG and Bain, seeks to enhance the preservation and reach of legendary music across both recorded formats and publishing rights.

This new venture is designed to offer artists and songwriters a platform where they can ensure their legacies are safeguarded and expanded. WMG will spearhead the sourcing and acquisition of music catalogs, while managing all marketing, distribution, and administrative tasks. This strategic collaboration combines WMG’s extensive global operational infrastructure with Bain Capital's robust financial resources, positioning the venture as a leading partner for acclaimed musical talent.

The decision to embark on this venture comes at a transformative time in the music industry. With fans increasingly consuming music through streaming services and emerging technologies, the partnership aims to connect timeless music to new audiences who may not have experienced it otherwise.

Robert Kyncl, CEO of Warner Music Group, expressed enthusiasm about the venture, stating, "Iconic artists and songwriters choose WMG for the growth of their legacies and to engage with new generations through innovative and impactful campaigns." He further noted that combining WMG's expertise with Bain Capital's financial strength will establish them as the preferred destination for preeminent music catalogs.

On Bain Capital’s side, Partner Angelo Rufino remarked, "Timeless music content continues to lie at the core of consumer entertainment. It is essential to ensure that artists and songwriters receive the support they need to increase the value of their work, while simultaneously delivering new and exciting collaborative experiences for fans." He emphasized that with WMG's creative resources and collaborative culture, the two entities are ideally positioned to succeed in nurturing these iconic music collections.

To facilitate the financing of this venture, Goldman Sachs and Fifth Third Bank have stepped in as joint lead arrangers, further bolstering the financial underpinnings of this ambitious initiative.

About Warner Music Group

Warner Music Group stands as a global leader in music entertainment, representing a diverse array of artists and entrepreneurs. With a presence in over 70 countries, WMG encompasses a variety of renowned labels, ranging from Atlantic and Elektra to Rhino and Warner Music Nashville. Their music publishing division, Warner Chappell Music, boasts an impressive catalog of over a million copyrights across all musical genres, reflecting both classic standards and contemporary hits.

About Bain Capital

Founded in 1984, Bain Capital is a premier private investment firm known for its commitment to generating lasting impact across various sectors. With a focus that includes Private Equity, Growth & Venture, Capital Solutions, Credit Markets, and Real Assets, Bain Capital uses its widespread expertise to navigate and leverage investment opportunities efficiently. Operating from 24 offices globally, the firm employs over 1,850 staff members and manages approximately $185 billion in assets, underscoring its influential role in the financial landscape.

This merger of resources marks a significant stride towards the recognition and protection of legendary catalogs in a rapidly evolving market, ensuring that the sounds of the past continue to inspire future generations.

As fans await the fruits of this collaboration, one thing is certain: the union of Warner Music Group and Bain Capital has the potential to reshape how we experience and appreciate music in the years to come.