Apollo’s managed funds and affiliates have provided a $1.25 billion equity capital injection to support the recently completed combination of BMG and Concord.
The combined company, which retains the BMG name, spans music publishing, recorded music, theatrical rights and digital distribution.
Under the terms of the Apollo transaction, the asset manager acquired a non-controlling interest in a subsidiary of BMG, which holds the legacy Concord ABS (asset-backed securities), backed by a catalogue of more than one million songs.
Since 2022, Apollo has supported Concord’s issuance of over $4.5 billion of ABS debt through a long-term financing partnership. Over the past five years, Apollo has originated over $8 billion in music industry investments.
In its announcement about the most recent ABS issuance with Apollo, Concord said the bonds were backed by music royalties from catalogues including works recorded by artists such as The Beatles, Beyonce, Bruno Mars, Carrie Underwood, Creedence Clearwater Revival, Daddy Yankee, Ed Sheeran, Genesis, Imagine Dragons, John Fogerty, Kiss, Michael Jackson, Otis Redding, Phil Collins, Pink Floyd, REM, Rihanna, Rodgers & Hammerstein, Taylor Swift and the Rolling Stones.
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
Apollo’s equity investment enables BMG to repay certain outstanding ABS liabilities.
Apollo partner Jamshid Ehsani said: “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. This transaction is indicative of Apollo's growing role as a provider of high-grade capital solutions to leading corporations across an expanding range of industries and use cases, leveraging our scaled permanent capital base.”
BMG CEO Bob Valentine said: “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. Together, we are building a stronger global music company with the scale, capabilities, and resources to capitalise on the opportunities ahead.”
Deutsche Bank served as financial advisor and Latham & Watkins LLP served as legal counsel to Apollo.
Goldman Sachs served as financial advisor to BMG, and DLA Piper and Davis Polk served as legal counsel to BMG on the transaction.
FOLLOW 
