Music sounds like money to Wall Street
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Illustration: Aïda Amer/Axios
Wall Street and music’s love affair has reached a fever pitch.
Why it matters: Artists and investors are finding it mutually beneficial to trade song rights in exchange for large payouts.
Catch up quick: John Legend is the latest example.
- An affiliate of private equity firm KKR bought a 50% stake in Legend’s copyrights and royalties rights, according to a regulatory filing.
- At 43, Legend is younger than many of the artists like Bruce Springsteen and Bob Dylan who have recently struck mega deals as part of estate planning — a signal that younger artists will follow suit.
The backdrop: The value of music catalogs has skyrocketed alongside the consumption of digital media.
- The combination makes it a win-win for musicians who want to cash in just as investors are hungry to turn songwriters and their tunes into predictable returns.
- COVID has added another reason to sell: Seasoned musicians whose opportunities for live music revenue are limited due to lack of tours have turned to the sales as a way to plan for their futures.
What they’re saying: "Artists [are increasingly] looking for ways to diversify their wealth," Sherrese Clarke Soares, founder and CEO of HarbourView Equity Partners, tells Axios.
The bottom line: There has never been a better time for musicians who have reached a certain point in their careers to sell, Larry Miller, director of music business at NYU Steinhardt, tells Axios.
