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Searchlight strikes Chord with $400m deal for ZZ Top music-owner
The owner of song catalogues produced by artists such as ZZ Top and Ellie Goulding is raising hundreds of millions of dollars in a deal with the private equity firm Searchlight Capital.
Sky News has learnt that Chord Music Partners has struck an agreement for Searchlight to invest $400m in the company, which is backed by Universal Music Group (UMG), the world's leading record label. Industry sources said the deal was likely to be announced this week.
Chord, which also owns the rights to songs made by Lorde, The Weeknd and John Legend, recently bought a stake in the catalogue of Morgan Wellen. The company is jointly owned by Dundee Partners, a family office, and UMG, with KKR, the private equity giant, having been a shareholder until last year.
The sale of KKR's stake took place at a valuation of $1.85bn. It is the latest in a glut of deals involving prominent music rights, with a land grab for valuable entertainment content continuing to drive prices higher.
Chord was formed in 2021 and is expected to announce further catalogue acquisitions in the coming months. Sir Lucian Grainge, chairman and chief executive of UMG, said at the time of its Chord stake purchase: "Finding partners who share our passion for identifying iconic songs and recordings that will stand the test of time and deliver long-term growth is essential.
"We look forward to creating maximum commercial and creative value for the songwriters and artists in Chord and building for the future." UMG declined to comment, while neither Chord nor Searchlight could be reached for comment..
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