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Private Equity Turns Attention to Indie Music Catalogs

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In Short: Rolling Stone reports that private equity firms are increasingly focusing on independent music catalogs, a trend that has been seen in major deals involving well-known artists like Bob Dylan and Justin Bieber.

Rolling Stone reports that private equity firms are increasingly focusing on independent music catalogs, a trend that has been seen in major deals involving well-known artists like Bob Dylan and Justin Bieber.

According to Aaron Schultz, owner of the boutique soul-funk imprint Bastard Jazz Recordings, this shift is 'threatening for the entire indie-music ecosystem.' He expressed these concerns in a Facebook post on July 2.

Patrick Clifton, executive director of the international indie-music organization ORCA, explains that the influx of institutional capital, including from private equity and large pension funds, is driving this trend.

Schultz told Rolling Stone that over the past couple of years, potential buyers have been testing the waters to see if independent labels and artists are interested in selling their catalogs.

Independent labels and artists are now in the crosshairs of a number of recently established investment firms, with catalogs of all sizes becoming targets.

The trend reflects a broader shift in the music industry, where private equity firms are seeking out reliable investments in intellectual property.

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