Nettwerk Music Group has announced a recapitalisation of its business, including the purchase of a stake held by HBC Investments.
The Vancouver-based company’s purchase of the HBC Investments ownership is part of a broader financing plan. It will provide capital to accelerate growth and build on its streaming strategy.
Nettwerk artist Passenger recently hit one billion streams for breakout single Let Her Go.
Anticipating the streaming boom, Nettwerk secured investment of $10.25 million Canadian (£6m) seven years ago from its founders, HBC Investments and Beedie Capital in order to make acquisitions and invest in artists that would benefit from the shift in consumption.
"Our management team appreciates the growth capital HBC Investments invested to support our strategy and the guidance they provided to achieve our goals through acquisition and organic growth," said Terry McBride, CEO and co-founder of the Company.
"We have so much respect for Terry McBride and his leadership over the last seven years of our investment in Nettwerk,” said Joe Colonnetta, HBC Investment's managing partner. “The management team has executed on its investment objectives and is well positioned to continue to prosper with the continued evolution of the music industry.”
Colonnetta confirmed to Music Week that Nettwerk raised new capital to buy all of HBC’s shares and invest in new and existing artists.
“The development of new artists is Network’s core expertise and the trends continue to be robust for new talent,” he said.
He added: “The industry continues to evolve in terms of channels through which listeners enjoy music, but Nettwerk has always put the artist first. Nettwerk was early in the industry’s move to digital, and today leads the way in effectively supporting an artist’s presence across channels, and optimising releases so that the artist most benefits from their music and from their music’s relationship to other music — something that for now is a critical aspect of a track’s success in streaming.
“The portfolio of existing artists on its label, especially in the signer-songwriter category, is a benefit to a new artist considering signing with Nettwerk, but the success of Nettwerk artists cuts across genres.”