Matt Pincus’ MUSIC raises $200m, as it eyes record label, publishing, tech and Web3 investments
New York-based Matt Pincus is a highly respected businessman in the music business: after all, he founded SONGS Music Publishing, a company that not only signed The Weeknd, Diplo, and Lorde – but also sell to Kobalt Capital for around $160 million in 2017.
After leaving SONGS, Pincus quietly founded an investment firm focused on the music business, in partnership with Liontree.
Since 2019, that joint venture – MUSIC – has invested in companies like music creation platform Splice, music financial services company HIFI, ticketing platform DICE, and others. (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 first diversified investment firm focused entirely on the music business,” MUSIC raised $200 million in “initial” capital as it officially relaunched as a partnership between Pincus and Liontree, along with two new investors – JS Capital Management and Schusterman Family Investments.
The company said it will “focus on taking on permanent positions in various music businesses”.
Headquartered in New York, MUSIC says it will seek long-term positions in companies operating across three areas of the music business: (i) technology; (ii) record labels and music publishers; and (iii) companies “dedicated to Web3 innovation”.
As the company’s co-founder and CEO, Pincus will handle capital allocation, investments and operations on behalf of MUSIC, as well as oversee the ongoing management of investments.
“To invest properly in music, you need to bet on talent with flexible capital, ready for the long term.”
Matt Pincus
“Institutional investors have flocked to music because of the unrelated returns and strong growth the industry has to offer. But for most investors, music is just another asset that fits into their portfolio,” Pincus said.
“At MUSIC, we invest in talent, creativity, repertoire and innovation. Good people reside across the entire capital system – from ventures to growth to private capital to profit. To invest properly in music, you need to bet on talent 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 growth of the music industry and as a strategic partner for the music industry. artists and entrepreneurs in the field.
“Matt’s independence, track record and the relationships he’s built across the ecosystem give him a unique perspective on where music is headed and we’re excited to partner with him. JS Capital and Schusterman on the subject.
“LionTree is increasingly focused on bringing together long-term capital with the people and ideas to propel industries forward, and we believe music is a particularly dynamic industry with many avenues to take. to grow and transform over time and through market cycles.”
Salil Seshadri, Chief Investment Officer at JS Capital Management, said: “JS Capital is focused on partnering with great management teams delivering solutions in large and often fragmented markets.
“In the case of MUSIC, the partnership with Matt and Aryeh allows us to be part of the changing trends in content creation, technology, and the constant shift towards experiences of things.
“Matt is a proven operator and LionTree is the best in its class when it comes to providing innovative advice and solutions to businesses in technology, media and entertainment — key areas on which MUSIC will operate.”
SONGS Music Publishing’s catalog is part of a collection of copyrights sold last year by Kobalt Capital for a joint venture led by KKR, Chord Music, for $1.1 billion.Worldwide music business
