Warner Music Group (WMG) and Bain Capital have launched a $1.2 billion joint venture focused on acquiring prestigious music catalogs, encompassing both recorded music and publishing rights. This partnership, first reported by Billboard, aims to support artists and songwriters while enhancing the longevity of their creative works.

Under this collaboration, WMG will handle marketing, distribution, and rights administration, while both firms will work together to identify and secure music catalogs. Goldman Sachs and Fifth Third Bank are serving as lead arrangers for the venture.

The alliance merges WMG’s extensive global infrastructure with Bain Capital’s investment expertise, positioning the joint venture as a prime destination for music assets. WMG CEO Robert Kyncl emphasized that iconic artists choose WMG to grow their legacies and reach new audiences through innovative campaigns. He believes that combining WMG’s capabilities with Bain Capital’s financial strength will make the venture a preferred choice for acquiring significant music catalogs.

Bain Capital partner Angelo Rufino highlighted the importance of catalog stewardship, noting that timeless music remains central to consumer entertainment. He stressed the need to support artists and songwriters in enhancing the value of their work while providing fans with fresh collaborations.

This initiative reflects a broader trend in the music industry, where major companies are seeking external capital to stay competitive amid rising catalog valuations and high interest rates. Streaming platforms have made older tracks increasingly profitable, thriving through algorithmic and curated playlists. However, investor caution is growing due to changing artist preferences for independence and more favorable deal terms.

The joint venture follows a series of notable catalog acquisitions in the industry. For instance, Sony Music recently spent $1.27 billion on Queen’s catalog and invested $625 million in a stake of Michael Jackson’s catalog. In early 2024, Universal Music Group acquired a portfolio of 60,000 music copyrights from Chord Music for $240 million. Sony Music has also partnered with institutional investors like Apollo for similar acquisitions, while WMG has previously supported ventures such as Tempo Music Group and Influence Media.

Michael Ryan-Southern, WMG’s head of corporate development and a former Goldman Sachs executive, played a crucial role in structuring this new initiative. He previously led WMG’s $450 million acquisition of Tempo Music, which includes works by artists like Wiz Khalifa and Florida Georgia Line.

WMG and Bain Capital’s partnership dates back to 2004, when Bain collaborated with Thomas H. Lee Partners, Edgar Bronfman Jr., and Providence Equity Partners to acquire WMG in a landmark $2.6 billion cash deal. This long-standing relationship has now evolved into a strategic venture aimed at capitalizing on the lucrative music catalog market.