Position Music Sells Minority Stake to Vesper Company in Bid to Expand Roster, Acquire Assets
The company will use the funds to sign more artists and songwriters while purchasing current music assets in the pop and hip-hop genres.
Position Music has sold a significant minority equity stake in itself to Vesper Company, a private investment firm founded in 2021 by executives formerly involved with a company that invested in Kobalt Music. In addition, Position Music has a new revolver credit facility from Pinnacle Bank. Terms were not disclosed for either deal.
Founded in 1999 by CEO Tyler Bacon, Position Music has a 40-person staff and occupies a 15,000-square-foot facility with office space and two recording studios, with four more studios currently being built. The company, which started as a synch music house, now consists of music publishing, a record label and a small artist management operation.
“I am excited to be partnering with the Vesper team as we enter this next phase of growth,” Bacon said in a statement. “With Vesper’s investment and strategic experience paired with our new credit facility from Pinnacle Bank, we are well-positioned to substantially build on the foundation we have built for 24 years.”
According to the company, Position Music’s publishing roster includes RIAA platinum-certified songs including Em Beihold’s “Numb Little Bug,” grandson’s “Blood // Water” (double platinum) and Judah & the Lion’s “Take It All Back,” along with gold-certified songs including Rotimi‘s “In My Bed” and Sueco’s “Paralyzed.” Its roster includes songwriters and/or artists such as Kid Bloom, Welshly Arms, Fantastic Negrito, Layto, Ryan Oakes, Blackway, 2WEI, TeaMarr and Judah & The Lion.
Position Music says the songwriters and producers it represents have written or produced songs for such artists as Avril Lavigne, Dua Lipa, Blink-182, Travis Barker, iann dior, Pop Smoke, Machine Gun Kelly and Avicii. Moreover, the company says it has recently completed joint ventures with Big Noise Music and Champagne Therapy Music Group. Position Music provides its own administration in the United States, while Kobalt serves as its international administrator.
Vesper was founded in 2021 by David Caro, Shamit Grover and Raj Gopal, formerly with MSD Partners. They were involved in that firm’s purchase of a minority stake in Kobalt Music Group, first made in 2014.
“For over twenty years, Tyler and his team have shown a strong commitment to serving artists and songwriters and helping them reach the next level of their careers,” added Gopal in a statement. “We’re excited to support the continued growth and evolution of Position Music.”
According to SEC filings, Vesper has raised at least $36.5 million in selling securities since its founding, although that appears to be related to another Vesper investment: its acquisition of New England Marine Monitoring. That investment, like its stake in Position Music, is apparently part of its investment strategy of partnering with companies that the firm can help scale through providing “strategically aligned capital and active support,” according to its website.
“Few independent music companies today can match Position Music’s scale, track record, and depth of synch and creative services,” Vesper’s Caro said in a statement. After his involvement with MSD Partners — but before the formation of Vesper — Caro served as head of corporate development at Kobalt, according to his LinkedIn profile.
With its new investment partners, Bacon tells Billboard that Position Music will organically expand by signing another 15 artists to its label roster in the near future and another 20 or so songwriters and/or producers in the next few years. Moreover, it will continue to selectively acquire current music assets, mainly in the pop and hip-hop genres; it recently completed two such buys in deals that included going-forward songwriting contracts. Bacon says the company is also open to doing more joint ventures.
As for investing in legacy music — a preferred asset class for most institutional investors — Bacon says the company’s financing is currently not set up to accommodate that type of investment strategy, though he doesn’t rule out making such investments somewhere down the line.
Position Music was represented by David Dunn and Rob Law at Shot Tower Capital and Christopher Scheaffer, Anatoliy Rozental and Stephen E. Sessa at ReedSmith. Vesper Company was represented by Michael High at Drummond Woodsum and Jeff Biederman and Monica Zhang at Greenberg Traurig.
In other Position Music news, Bacon announced that vp/head of A&R Mark Chipello, vp/head of synch Emily Weber and vp of A&R and gaming Jake Versiuis have been made partners at the company.