$500m-backed Litmus Music launches to purchase publishing and recording rights

A well-funded new participant simply entered the music rights acquisition area.

Music trade veterans Hank Forsyth and Dan McCarroll are teaming up with Carlyle International Credit score to launch a enterprise known as Litmus Music.

New York-based Litmus says that it’s going to concentrate on buying and managing each publishing and recorded music rights, with Carlyle International Credit score committing an preliminary $500 million to take action.

Carlyle International Credit score, which has $143 billion in assets under management, is investing capital into Litmus from what it calls its “Credit score Alternatives technique”, which, it says, has already deployed $2.2 billion in and across the media and leisure area since 2018.

Carlyle International Credit score is considered one of three platforms (alongside International Personal Fairness and International Funding Options), operated by funding agency Carlyle, which had $376 billion of belongings below administration as of June 30, 2022.

In a press launch asserting the information, Litmus says it should “purchase and handle music rights, together with each music publishing and recorded music, throughout genres, geographies and vintages”.

Based on the discharge, Carlyle International Credit score’s preliminary dedication of $500 million will probably be in each fairness and debt, alongside “capital dedicated by administration”, which it says will probably be used to launch the enterprise and “fund the pursuit of a strong pipeline of music rights targets”.

Carlyle was beforehand an investor in Scooter Braun’s Ithaca Holdings, previous to its $1 billion acquisition by HYBE in February final yr. Carlyle exited its place within the acquired firm.

Litmus Music enters a rights acquisitions panorama already occupied by gamers like Primary Wave, Hipgnosis Songs Fund, HarbourView Fairness Companions, and Affect Media Companions.

Additionally competing within the area are the likes of BMG and KKR, whereas the main music firms have additionally made notable rights acquisitions in current months. Such acquisitions embody the likes of Bruce Springsteen’s catalog sale to Sony Music Group in December, Warner Music Group‘s David Bowie song catalog acquisition in January, and Sting’s song catalog sale to Universal Music Group in February.

Litmus says that its founding members carry important music trade expertise to the area.

Hank Forsyth has held varied government roles at Warner Chappell Music, EMI Music, and Blue Observe Information during the last 20 years.

At Warner Chappell, as EVP, he labored intently with the workforce to develop the Firm’s technique and led enterprise and course of initiatives globally.

Because the GM of Blue Observe, he’s mentioned to have performed a central function in revitalizing the label in partnership with its President, Don Was. Forsyth beforehand spent greater than 10 years with EMI Group and EMI Music Publishing in operations and technique.

He started his profession as an fairness analyst at Salomon Brothers and Donaldson, Lufkin & Jenrette in New York and London.

Dan McCarroll, in the meantime, has served as President of Warner Brothers Records and Capitol Information and has held government roles at Amazon Music and EMI Music Publishing.

Previous to his government profession, he spent 20 years as a touring and studio musician.

He has labored intently with artists all through the years together with Bo Diddly, Katy Perry, Tom Petty, Keith City, Dua Lipa, Duran Duran, Elton John, Ciara, Sheryl Crow, Mac Miller, Andra Day, Lloyd Cole, Sam Smith, Stevie Nicks, Gary Clark Jr., and Brian Wilson.

“Music is as essential in society because it has ever been, and its affect and worth are being felt increasingly more.”

Hank Forsyth, Litmus

Hank Forsyth, Co-Founder and Chief Govt Officer of Litmus, mentioned: “Music is as essential in society because it has ever been, and its affect and worth are being felt increasingly more.

“It’s an honor to accomplice with Dan and kind what now we have talked about for years – a music enterprise and workforce constructed on integrity and belief.

“These core Litmus values are shared by Carlyle, and we consider they’re one of the best companions to assist our workforce as we begin this journey.”

“Music has been the driving power of my life and I’ve the best respect for the writers and artists who make it and the followers who cherish it.”

Dan McCarroll, Litmus

Dan McCarroll, Co-Founder and Chief Inventive Officer of Litmus, mentioned: “Music has been the driving power of my life and I’ve the best respect for the writers and artists who make it and the followers who cherish it.

“It’s thrilling to be beginning Litmus with the partnership of Hank and Carlyle. Our unimaginable workforce is all about collaboration and constructing a group of ageless music belongings and unforgettable songs that may proceed to counterpoint individuals’s lives for years to come back.”

“Our partnership with Hank and Dan, two extremely regarded executives within the music trade, underscores the worth we see in music rights, pushed by robust tailwinds and the uncorrelated nature of the asset class.”

Matt Settle, Carlyle International Credit score

Matt Settle, Managing Director with Carlyle International Credit score, mentioned: “Our partnership with Hank and Dan, two extremely regarded executives within the music trade, underscores the worth we see in music rights, pushed by robust tailwinds and the uncorrelated nature of the asset class.

“Streaming and different new mediums have enabled extra methods than ever to devour content material, and we consider Litmus has the right combination of expertise, expertise and connectivity to develop a profitable and differentiated enterprise, and to look after works that individuals have spent their lifetimes creating.”Music Enterprise Worldwide