Investment firm KKR has joined with Dundee Partners to purchase the KMR Music Royalties II portfolio from Kobalt Capital for approximately $1.1 billion.
The portfolio is comprised primarily of music publishing copyrights for established works and includes a diverse collection of over 62,000 copyrights.
Kobalt Music Publishing will continue to administer and service the works in Fund II under a multi-year agreement.
The transaction has been completed by Chord Music Partners, a platform established by KKR with Dundee Partners. KKR will also contribute other music assets purchased over the past year to Chord, positioning the platform as owner of a diversified portfolio of music rights representing iconic musical works from the last five decades.
“We are thrilled to purchase this diverse collection of iconic songs,” said Jenny Box, partner at KKR. “We look forward to investing in the success of this music and working collaboratively with Kobalt and the artists and songwriters who created it.
“This transaction positions us with significant scale, which we will continue to grow by providing flexible, creative capital to music rights owners. Across KKR, we are investing in innovative technology, media and entertainment businesses that are connecting fans to music in new ways and we are excited about how this can enhance the value and reach of these songs.”
Kobalt Capital chief investment officer and Kobalt founder & chairman Willard Ahdritz said: “When we launched Kobalt Capital in 2011, we wanted to work with music we loved and would continue to live on for many decades to come. Our announcement today acknowledges this focus, our predicted market development and the great work we have done at KCL. I am also proud that creators and rights owners put their belief in us to take care of their timeless music and represent it well. We are excited to welcome KKR and Dundee Partners as Kobalt Music clients as the new owners of the Fund II works."