Warner Music Launches $650M Investment Platform With Equity Firm Providence
Warner Music Group has partnered with private equity firm Providence to launch a new catalog investment platform called Tempo Music Investments.
Warner Music Group has partnered with private equity firm Providence to launch a new catalog investment platform called Tempo Music Investments. According to a press release, Tempo begins life with $650 million in equity and debt capacity — most of that coming from Providence.
“More than ever before, the long-lasting value of music is being recognized outside the music industry,” commented Stu Bergen, CEO, International and Global Commercial Services, WMG. “We’ll be devoted stewards of these amazing catalogs created by songwriters and recording artists across the globe, and WMG is very happy to be partnering with Providence in this pioneering venture.”
WMG will be handling administration for publishing and distribution for recorded music, while Influence Media Partners, a rights management company founded by Lylette Pizarro McLean and co-managed by music industry veteran Lynn Hazan, has been enlisted to manage the assets in the Tempo portfolio and explore further investment opportunities.
“Music has always been the center of influence and culture, and it begins with great songwriters and artists,” said Pizarro McLean in a statement to Billboard. “We are energized, passionate and confident about the opportunity we have to build a world-class platform supporting a creative community I so deeply care about.”
Some of Tempo’s first acquisitions include select copyrights of songwriters Jeff Bhasker, Ben Rector and Shane McAnally. “My songs are second only to my kids in creating a legacy that I hope will live on long past me,” said McAnally, whose co-publishing deal also includes future works.
Josh Empson, managing director at Providence, said, “It is a privilege to partner again with Warner Music Group. We are excited about this innovative new relationship, which combines Providence’s investment expertise in media with WMG’s distinctive skill in working with and recognizing top artists and assets in music. We look forward to partnering with WMG and our investment management team to support creators and build a best-in-class portfolio of music assets.”
Rhode Island-based Providence specializes in companies working in media, communications, education and information, and has a portfolio that includes Hulu, Topgolf and the Yankees Entertainment & Sports Network.