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New York - November 01, 2023
Kobalt today announced a new partnership with investment funds managed by Morgan Stanley Tactical Value to invest more than $700 million to acquire music copyrights over the next few years. As part of the venture, Kobalt will manage the creative, synch, licensing, administration, and investment services for the copyrights.
“Kobalt is a pioneer in investing in music, increasing the value of copyrights, and creating music as a viable asset class,” said Laurent Hubert, Chief Executive Officer, Kobalt. “Morgan Stanley Tactical Value's trust in Kobalt is a testament to our platform and leadership in the music industry. We are proud to form this unique partnership.”
“Morgan Stanley Tactical Value has profound respect for songwriters and the immense value of their art.” said Cameron Smalls, Managing Director, Morgan Stanley Tactical Value. “We are thrilled to partner with the leading creator-first publisher that is a pioneer in maximizing royalty collections for songwriters and rightsholders. Together with Kobalt’s infrastructure and deep commitment to bettering the music industry, we are excited about our partnership and the opportunities ahead.”
Goldman Sachs acted as an advisor in this partnership.
About Kobalt
Kobalt is a music company powered by innovative technology created as an alternative to the traditional music business model. The company has become the leading independent music publishing destination for artists, songwriters, and publishers. Across 13 global offices, Kobalt serves over 700,000 songs, representing some of the biggest songwriters in the world, including Roddy Ricch, Max Martin, FINNEAS, Karol G, Andrew Watt, Stevie Nicks, Phoebe Bridgers, The Lumineers, Gunna, Justin Quiles, The Foo Fighters, Paul McCartney, and many more. On average, Kobalt represents over 40% of the top 100 songs and albums in the US and the UK.
Kobalt continues to drive innovation in music through Kobalt’s unique services and technology platform that tracks and collects royalties for the trillions of micro-payments in digital music today. The company continues to transform the industry, most recently via AMRA, its global digital music collection society designed to maximize value for songwriters and publishers in today's digital age, while providing the highest level of transparency and efficiency. For more information about Kobalt, please visit www.kobaltmusic.com.
About Morgan Stanley Tactical Value
Morgan Stanley Tactical Value is the flexible, non-control private equity and credit investment platform within Morgan Stanley Investment Management. With a broad mandate to invest across asset classes, sectors and geographies, Morgan Stanley Tactical Value is able to tailor bespoke solutions for companies to meet their unique strategic and financial objectives. The team's expertise, including deep structuring experience, is complemented by Morgan Stanley's extensive network and global capabilities to drive differentiated capital solutions for companies, founders, sponsors, and stakeholders. For more information, please visit www.morganstanley.com/im/tacticalvalue.
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