New York-based Matt Pincus is a well-respected entrepreneur in the music business: after all, he founded SONGS Music Publishing, which not only signed The Weeknd, Diplo and Lorde – but ended up selling to Kobalt Capital for approximately $160 million in 2017. .
After leaving SONGS, Pincus quietly launched an investment house focused on the music industry, in partnership with Liontree.
Since 2019, this company – MUSIC – has invested in companies such as music creation platform Splice, music financial services company HIFI, ticketing platform DICE, etc. (Pincus is currently a board member of Splice and HIFI.)
Today (May 26), Pincus announced that he is taking MUSIC to the next level.
Calling itself “the premier diversified investment firm focused exclusively on music businesses”, MUSIC raised $200 million in “initial” capital when it officially relaunched as a partnership between Pincus and Liontree, plus two new investors – JS Capital Management and Schusterman Family Investments.
The company says it will “focus on taking long-term positions in various music businesses.”
Based in New York, MUSIC says it will seek long-term positions with companies operating in three areas of the music industry: (i) the technology sector; (ii) record companies and music publishers; and (iii) companies “dedicated to Web3 innovation”.
As co-founder and CEO of the company, Pincus will handle capital allocation, investments and operations on behalf of MUSIC, as well as governance of ongoing investments.
“To make the right investments in music, you have to bet on talent with flexible capital, ready for the long term.”
“Institutional investors have flocked to music because of the uncorrelated returns and strong growth the industry offers. But for most investors, music is just another asset that fits into their portfolio,” says Pincus.
“At MUSIC, we invest in talent, creativity, repertoire and innovation. The right people reside everywhere in the capital stack – from venture capital to growth to private equity to yield. To make the right investments in music, you have to bet on talents with flexible capital, ready for the long term.
Aryeh B. Bourkoff, Founder and CEO of LionTree, Co-Founder of MUSIC, said, “We launched MUSIC to invest in the evolution of the music industry and to be a strategic partner for artists and entrepreneurs across space.
“Matt’s independence, background, and the relationships he’s built across the ecosystem give him a unique perspective on where music is headed, and we’re thrilled to partner with JS Capital and Schusterman on this. .
“LionTree is increasingly focused on bringing together long-term capital with people and ideas to drive industries forward, and we believe music is a particularly dynamic industry with multiple avenues for growth and transformation. over time and through market cycles.”
Salil Seshadri, Chief Investment Officer of JS Capital Management, said, “JS Capital is focused on partnering with large management teams that provide solutions in large and often fragmented markets.
“In the case of MUSIC, partnering with Matt and Aryeh allows us to be part of changing trends in content creation, technology, and the continued evolution towards experiences rather than things.
“Matt is a proven operator and LionTree is best-in-class when it comes to offering creative advice and solutions to companies in the areas of technology, media and entertainment, the main vectors on which MUSIC will work.”
The SONGS Music Publishing catalog was part of a collection of copyrights sold last year by Kobalt Capital to a KKR-led company, Chord Music, for $1.1 billion.The music industry around the world