Private equity firm Rizvi Traverse Management has agreed to sell music rights organization SESAC to another firm, Blackstone, the companies announced on Wednesday. Financial terms of the deal have not been disclosed, but this marks Blackstone's first step in a new strategy to hold onto private investments longer than most equity firms, a point highlighted by SESAC CEO John Josephson in the announcement.
"Blackstone is acquiring our company with the specific intent of backing the existing management team, and shares our long-term vision for the company with a history of adding value to their portfolio companies as a supportive strategic partner and capital provider," he said. "We anticipate a seamless transition in ownership with no disruption to our business activities as a result of this transaction."
Nashville-based SESAC is unique in that it administers public performance, mechanical, synchs and other rights under one roof. This transition into a multi-rights organization became solidified with 2015's acquisition of the Harry Fox Agency, a leading mechanical rights org.