Major Wave raises $375m funding from Oaktree Capital, sells minority stake

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Primary Wave Music just got a big cash injection.

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The company has entered into what is known as a “strategic relationship” with funds managed by Oaktree Capital Management.

Oaktree Capital has committed to invest up to $ 375 million in primary wave music in exchange for a minority stake in the music company.

Primary Wave has raised over $ 800 million through two IP funds over the past four years.

As such, Primary Wave now owns a sizable stake in the song catalogs of icons like Ray Charles, Bob Marley, Whitney Houston, Burt Bacharach, Smokey Robinson, the Four Seasons and Stevie Nicks of Fleetwood Mac.

In November last year, Larry Mestel, Founder and CEO of Primary Wave, revealed on the MBW podcast that Primary Wave had won over $ 500 million.

Citing experts, Bloomberg reports that its investment in Oaktree Capital coincides with the closure of Primary Wave’s third-party fund, which has not yet been announced.

The same sources tell Primary Wave that the investment “creates the conditions for Primary Wave to consider a public offer of its fund operations”.

In a news release released today (June 11), Oaktree said it “will help strengthen Primary Wave’s financial positioning as an asset manager of iconic music, and that substantial funding will add to Primary Wave’s already sizeable war chest for future catalog purchases.”

Following the Oaktree deal, Primary Wave now manages $ 1.5 billion in cash and assets.

This transaction was completed by Larry Mestel, Founder and CEO of Primary Wave, and Bruce Karsh, Co-Chairman and Chief Investment Officer of Oaktree, and Brian Laibow, Managing Director and Co-Head of North America.

“The Primary Wave team is honored to have such a respected financial institution and such a talented team to support our endeavors.”

Larry Mestel, primary wave

Larry Mestel, Founder and CEO of Primary Wave, said, “The Primary Wave team is honored to have such a respected financial institution and talented team to support our endeavors.

“Bruce Karsh and I have been working together for over 15 years and he has an unusual combination of business acumen and creative sensitivity to music.”

“This is an exciting new chapter for the entire company as we continue to grow and develop our business.”

As I am a real music lover myself, I am committed to the growth and future success of the company. “

Bruce Karsh, Oaktree

Bruce Karsh, Co-Chairman and Chief Investment Officer of Oaktree Capital, said, “I have long admired the business model and success Larry has built for Primary Wave and see this partnership as a unique opportunity to watch our investment portfolio grow diversify and uncorrelated asset class.

As I am a real music lover myself, I am committed to the growth and future success of the company. “

“The value that the Primary Wave team adds to a hit song by a classic artist like Whitney Houston or Bob Marley is hard to compete with.”

Brian Laibow, Oaktree

Laibow said, “The value that the Primary Wave team adds to a hit song by a classic artist like Whitney Houston or Bob Marley is tough to compete with.

“It is quite impressive how many iconic music catalogs Primary Wave has acquired in its 15 years in business and we are proud to be working with Larry and his team on this next chapter.”Music business worldwide

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