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Private Equity Targets Indie Music Catalogs
Confirmed
In Short: The Department of the Treasury announced a rule that could strip tax-exempt status from private schools engaging in racial discrimination, targeting diversity, equity, and inclusion policies.
Rolling Stone reports that private equity firms are increasingly acquiring songwriting catalogs, a trend exemplified by recent high-profile deals involving Bob Dylan, Justin Bieber, and Pete Townshend, all fetching nine-figure sums.
According to Aaron Schultz, owner of the boutique soul-funk label Bastard Jazz Recordings, these acquisitions are 'threatening for the entire indie-music ecosystem.' In a Facebook post on July 2, Schultz criticized the trend.
Patrick Clifton, executive director of the international indie-music organization ORCA, explains that the trend reflects a broader shift towards institutional capital, including private equity and large pension funds.
The Department of Education recently issued a letter threatening to revoke federal funding from schools and universities that do not eliminate diversity, equity, and inclusion initiatives.
Brands, the parent company of KFC, Taco Bell, and Pizza Hut, has sold Pizza Hut’s operations outside mainland China to private equity firm LongRange Capital for $1.5 billion, ending a nearly 30-year ownership.
Yum could receive an additional $75 million by 2030 if Pizza Hut meets certain performance targets under its new ownership.
What this adds
The trend of private equity firms acquiring songwriting catalogs is a new development in the music industry, reflecting broader shifts in institutional investment.
The Department of Education and Treasury's actions are unrelated to the music industry but highlight broader regulatory changes affecting private institutions.
Background
Private equity (PE) is stock in a private company that does not offer stock to the general public. Instead, it is offered to specialized investment funds and limited partnerships that take an active role in managing and structuring the companies.
What's confirmed
- Rolling Stone reports that private equity firms are increasingly acquiring songwriting catalogs, a trend exemplified by recent high-profile deals involving Bob Dylan, Justin Bieber, and Pete Townshend, all fetching nine-figure sums.
- According to Aaron Schultz, owner of the boutique soul-funk label Bastard Jazz Recordings, these acquisitions are 'threatening for the entire indie-music ecosystem.' In a Facebook post on July 2, Schultz criticized the trend.
- Patrick Clifton, executive director of the international indie-music organization ORCA, explains that the trend reflects a broader shift towards institutional capital, including private equity and large pension funds.
- The Department of Education recently issued a letter threatening to revoke federal funding from schools and universities that do not eliminate diversity, equity, and inclusion initiatives.
- Brands, the parent company of KFC, Taco Bell, and Pizza Hut, has sold Pizza Hut’s operations outside mainland China to private equity firm LongRange Capital for $1.5 billion, ending a nearly 30-year ownership.
- Yum could receive an additional $75 million by 2030 if Pizza Hut meets certain performance targets under its new ownership.
What's still developing
- Most of these have come from private-equity firms looking for reliable investments.
- 3 Department of the Treasury press release stated that the rule is designed to “end federal tax-exempt status for private schools that engage in racial discrimination.” The regulation — which targets diversity, equity, and inclusion policies — is set to take effect next May and could affect up to 18,000 institutions.