HarbourView Fairness Companions has secured $500 million in further debt financing from funding big KKR, secured through a non-public securitization backed by its music portfolio.
This newest transaction follows a earlier $500 million in debt financing secured by HarbourView in March 2024, by means of a non-public securitization backed by its catalog of music royalties, and led by KKR.
Citing an interview with HarbourView Founder and CEO Sherrese Clarke on Monday (June 9), Bloomberg reported that the corporate plans to make use of the brand new financing “to scale up, so as to add to its portfolio of music content material and to push deeper into movie and TV-rights administration”.
KKR is offering the extra financing to HarbourView as a part of its Asset-Primarily based Finance (ABF) technique.
In response to KKR, its ABF technique “focuses on privately originated and negotiated credit score investments which can be backed by massive and diversified swimming pools of economic and arduous property, providing diversification to conventional company credit score and enticing risk-adjusted returns”.
KKR’s ABF platform started investing in 2016 and now has roughly $74 billion in ABF property below administration globally.
Established in 2021 by former Tempo Music CEO Sherrese Clarke with backing from Apollo International Administration, HarbourView Fairness Companions has acquired over 70 music catalogs encompassing over 35,000 songs throughout each grasp recordings and publishing earnings streams.
The corporate’s portfolio consists of music from T-Ache, James Fauntleroy, George Benson, Noel Zancanella, Fleetwood Mac’s Christine McVie, Pat Benatar, Neil Giraldo, Nelly, Jeremih, Wiz Khalifa, Kane Brown, Full Power and extra.
The corporate stories to have amassed roughly $2.67 billion in regulatory property below administration.
HarbourView most not too long ago made a deal to finance a slate of Hip-Hop biopics in partnership with Will Smith’s Westbrook Studios, Taste Unit and Jesse Collins Leisure, beginning with a Queen Latifah biopic.
This adopted an funding in Usher’s 2024 live performance movie Rendezvous in Paris.
The newest financing additionally follows HarbourView’s $300 million credit score facility enlargement introduced in December 2023.
“We see an incredible alternative to proceed investing in evergreen mental property, which we consider is traditionally uncorrelated to broader market volatility and varieties a strong diversification device.”
Sherrese Clarke, HarbourView
“We’re thrilled to have KKR’s continued help as we additional scale the agency,” mentioned HarbourView Founder and CEO Sherrese Clarke.
“This extra capital from KKR will assist us speed up our technique to align with the place the media, sports activities and leisure markets are headed.
“We see an incredible alternative to proceed investing in evergreen mental property, which we consider is traditionally uncorrelated to broader market volatility and varieties a strong diversification device.”
“Music IP is one in every of many areas of alternative that we see for this technique and an instance of its breadth.”
Avi Korn and Chris Mellia, KKR
Avi Korn and Chris Mellia, International Co-Heads of Asset-Primarily based Finance at KKR, mentioned: “We’re happy to additional help HarbourView and to take a position on this well-diversified, scaled and high-quality portfolio by means of our Excessive-Grade Asset-Primarily based Finance technique.
“Music IP is one in every of many areas of alternative that we see for this technique and an instance of its breadth.”
Barclays served as sole structuring advisor on this transaction.
Barclays and KKR Capital Markets acted as placement brokers, and Fifth Third Financial institution, Nationwide Affiliation as passive placement agent.
“We’re grateful to play a small function in HarbourView’s continued progress”.
Salina Sabri, Barclays
“Barclays is proud to as soon as once more help HarbourView. This deal underscores the sturdy demand from buyers for uncorrelated property and highlights our observe report of supporting music and media firms in accessing environment friendly, scalable capital,” mentioned Salina Sabri, Managing Director, Securitized Merchandise Origination at Barclays.
“We’re grateful to play a small function in HarbourView’s continued progress”.
The transaction marks one of many newest rights-backed securitization offers in music, an space of the trade that has seen vital exercise in recent times.
In January, Affect Media Companions confirmed that it had secured roughly $360 million in debt financing by means of an inaugural personal securitization, collateralized by music royalties from its portfolio of music rights.
In November, Blackstone’s then-Hipgnosis (now Recognition) efficiently accomplished a $1.47 billion music rights asset-backed securities transaction (i.e. bond providing).
In October 2024, Harmony closed an $850 million Asset-Backed Securities transaction to “gas strategic progress and acquisitions”.
Harmony’s $850 million ABS transaction marked the third collection of Notes issued as a part of a broader $2.6 billion bond providing backed by music rights from Harmony’s catalog.
Additionally in October, Duetti, a music funding firm targeted on indie music rights, introduced it had secured $114 million in new funding for the additional acquisition of music catalogs. That features $34 million in new fairness financing, led by PE agency Flexpoint Ford, with participation from present buyers Nyca Companions and Viola Ventures. It additionally included an $80 million raised by means of the corporate’s first asset-backed securitization (ABS) transaction, which Duetti says was “backed by a extremely diversified music rights catalog.”
Elsewhere within the music trade, in March 2024, Kobalt confirmed the increase of $266.5 million through its first-ever Asset-Backed Securitization (ABS) transaction, backed by music royalties from a catalog of greater than 5,000 works from 66 writers.
KKR’s involvement in HarbourView’s preliminary $500 million debt financing deal arrived just some weeks after KKR bought its majority stake in Chord Music Companions, the platform it established with Dundee Companions.
KKR has additionally been energetic elsewhere within the music trade over the previous 12 months.
In June 2024, KKR acquired European pageant operator Superstruct Leisure from personal fairness agency Windfall Fairness Companions for a reported EUR €1.3 billion (USD $1.4).
KKR made the funding in Superstruct by means of its European Fund VI, an $8 billion fund that invests within the progress of “main companies”.Music Enterprise Worldwide
