Apollo-managed funds and affiliates have provided a $1.25 billion equity capital solution supporting the completed combination of music companies BMG and Concord.
The transaction brings together businesses spanning music publishing, recorded music, theatrical rights and digital distribution. The combined company retains the BMG name and is headquartered in Nashville.
As part of the transaction, Apollo acquired a noncontrolling interest in a BMG subsidiary holding Concord’s legacy asset-backed securitization portfolio.
That ABS structure is backed by a catalog containing more than 1 million songs, and Apollo’s investment enables BMG to repay certain outstanding ABS liabilities.
The transaction extends an existing relationship between Apollo and Concord.
Since 2022, Apollo has supported more than $4.5 billion of Concord ABS debt issuance through a long-term financing partnership. Across the past five years, Apollo said it has originated more than $8 billion of investments in the music industry.
Apollo is increasingly applying its large permanent-capital base to customized financing solutions that sit between traditional corporate debt and conventional private equity.
In this case, the investment supplies equity capital without taking control of BMG while simultaneously strengthening the combined company’s balance sheet following the Concord transaction.
The combined BMG repertoire includes music and other works associated with artists, songwriters, composers and playwrights including will.i.am, Phil Collins, Tina Turner, Lin-Manuel Miranda, Jason Aldean, Jelly Roll, Evanescence, Kylie Minogue, Billie Holiday, Rodgers & Hammerstein, Creedence Clearwater Revival, OneRepublic, Daddy Yankee and Leonard Bernstein.
BMG operates 18 offices globally and is part of Bertelsmann, with affiliates of Great Mountain Partners holding a minority stake.
KEY QUOTES:
“We are pleased to support the transformative combination of BMG and Concord through a tailored, non-dilutive equity investment that strengthens the combined company’s financial positioning as it enters this exciting next chapter.”
Jamshid Ehsani, Partner at Apollo
“The combination of BMG and Concord marks a defining moment in our company’s evolution. Apollo’s continued partnership and confidence in our strategy further strengthens our financial foundation and positions us to champion artists and songwriters, and to pursue global long-term growth opportunities.”
Bob Valentine, CEO of BMG
