Music sounds like money to Wall Street

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The love affair of Wall Street and music has reached fever pitch.

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Why this matters: Artists and investors are finding it mutually beneficial to trade the rights to the songs in exchange for a larger payment.

Catch up quickly: John Legend is the latest example.

  • An associate of private equity firm KKR bought 50% stake In Legend’s copyright and royalty rights, according to a regulatory filing.
  • At 43 years old, Legend is younger than several artists like Bruce Springsteen and Bob Dylan, who have recently struck mega deals as part of estate planning – a sign that the young cast will follow suit.

Background: Along with the consumption of digital media, the value of music catalogs has skyrocketed.

  • The combination makes it a win-win for musicians who want to cash in like investors hungry to turn songwriters and their tunes into predictable returns.
  • COVID has added another reason to sell: Veteran musicians whose live music revenue opportunities are limited due to a lack of tourism, have turned to sales as a way to plan for their future.

What are they saying: “artist’s [are increasingly] Looking for ways to diversify their wealth,” Shersey Clark Soares, founder and CEO of Harborview Equity Partners, tells Nerdshala.

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Bottom-line: Larry Miller, director of the music business at NYU Steinhardt, tells Nerdshala that there has never been a better time for musicians who have reached a certain point in their careers.


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