Carlyle Group is on the verge of closing a $464 million bond sale backed by music rights.
That’s according to Bloomberg, which reported on Monday (April 28) that the sale is the “first securitization of music royalties” from Carlyle-backed Litmus Music.
Litmus was launched in 2022 by music industry veterans Hank Forsyth and Dan McCarroll, backed by USD $500 million in funding from Carlyle Global Credit, split between equity and debt.
Carlyle Global Credit is one of three platforms (alongside Global Private Equity and Global Investment Solutions), operated by investment firm Carlyle, which has $441 billion of assets under management, according to its website.
Citing a person with knowledge of the matter, Bloomberg reported on Monday (April 28) that the bond sale, backed by music rights from artists including Benny Blanco, Keith Urban, and Katy Perry “was three times oversubscribed”.
Bloomberg reported further that the bonds “are backed by a music portfolio valued at over $750 million”.
The report added that “proceeds from the issuance will refinance existing debt on the portfolio and distribute a dividend to shareholders”.
Litmus has been busy over the past three years. It acquired Randy Newman’s share of his recorded music and publishing in October 2024.
In September, Opus Music Group, owner of rights to music catalogs from Juice WRLD, Ozuna, Maluma, and Rauw Alejandro, was quietly acquired by Litmus.
Litmus also acquired a “portfolio of compositions” from songwriter and producer Benny Blanco in June 2023, covering what it said are “numerous multi-platinum hits and hundreds of songs”.
And then, in September 2023, Litmus acquired a bundle of rights from Katy Perry in a deal industry sources suggested was worth around $225 million, marking 2023’s biggest catalog deal with a single artist.
Litmus acquired Keith Urban’s master recordings catalog in December 2022.
Carlyle’s reported bond sale marks one of the latest rights-backed securitization deals in the music industry.
In November, Blackstone’s Hipgnosis successfully completed a $1.47 billion music rights asset-backed securities transaction (i.e. bond offering).
In October, Concord closed an $850 million Asset-Backed Securities transaction to “fuel strategic growth and acquisitions”.
Concord’s $850 million ABS transaction marked the third series of Notes issued as part of a broader $2.6 billion bond offering backed by music rights from Concord’s catalog.
Also in October, Duetti, a music investment company focused on indie music rights, announced it had secured $114 million in new funding for the further acquisition of music catalogs. That includes $34 million in new equity financing, led by PE firm Flexpoint Ford, with participation from existing investors Nyca Partners and Viola Ventures. It also included an $80 million raised through the company’s first asset-backed securitization (ABS) transaction, which Duetti says was “backed by a highly diversified music rights catalog.”
Elsewhere in the music industry, in March 2024, Kobalt confirmed the raise of $266.5 million via its first-ever Asset-Backed Securitization (ABS) transaction, backed by music royalties from a catalog of more than 5,000 works from 66 writers.
Also in March, HarbourView Equity Partners secured approximately $500 million in debt financing through a private securitization backed by its catalog of music royalties.
In January, Influence Media Partners confirmed that it had secured approximately $360 million in debt financing through an inaugural private securitization, collateralized by music royalties from its portfolio of music rights.Music Business Worldwide
