Earlier this year, Sony Music Publishing (SMP) teamed up with US-based private investment firm Domain Capital Group to acquire a career-spanning catalog from Ashley Gorley – one of the most successful country music songwriters of the last 20 years.
MBW understands that Sony x Domain’s catalog deal with Gorley carried a price tag in the region of $40 million.
Since that acquisition was announced, Domain Capital Group has been largely quiet as far as the music industry is concerned. Until today.
Domain and its subsidiary, Domain Capital Advisors (DCA), have just announced that they have closed more than $700 million of equity commitments for a new entertainment fund and co-investment vehicle focused on film, television, and music.
In a press release announcing the news, Atlanta-based Domain says that it has already deployed more than $170 million of this new fund for deals across entertainment media.
According to its website, as of June 30, 2022, Domain managed approximately $8.4 billion in total assets through its two registered subsidiaries, Domain Capital Advisors, LLC and Domain Timber Advisors, LLC.
Domain said in a press release issued on Tuesday (November 1), that the latest fund follows its successful deployment of an $830 million separate account launched in 2012, which focused primarily on film and television assets.
According to Domain, its DCA subsidiary’s media and entertainment group specializes in assets including digital media, feature films, television, literary works, music publishing and recording rights, and theatrical productions.
Furthermore, according to the press release issued by Domain, the fund also participates in “long-term partnerships in a variety of structures in order to support the creation of new content”.
Domain and Sony, for example, revealed in May that they had agreed an exclusive go-forward deal with songwriter Ashley Gorley, enabling the acquisition of rights in music he composes over the next few years.
DCA explains further that its investment strategy in media and entertainment portfolios focuses on acquisitions “predominantly intended to deliver cash-on-cash returns with a low correlation to the broader market”.
“We are excited to launch our first diversified private entertainment royalty fund.”
Anthony Tittanegro, Domain Capital Group
Anthony Tittanegro, Executive Managing Director of Domain Capital Group, said: “We are excited to launch our first diversified private entertainment royalty fund.
“At a time of sustained entertainment industry growth supported by an ever-evolving landscape of distribution channels, we are focused on building a diversified asset-base to generate cash yield and help maintain our investors’ capital.”
“We believe in the long-term value of these assets and are purposeful about each investment and its connection to the creator as well as our broader portfolio.”
Pete Chiappetta, Domain Capital
Pete Chiappetta, Managing Director of DCA’s media, entertainment, and technology business, added: “We believe in the long-term value of these assets and are purposeful about each investment and its connection to the creator as well as our broader portfolio.
“We consider this a structurally creative and flexible approach to achieve our investment goals while also meeting the needs of our transaction partners.”
Keel Harbour Capital acted as the fund’s placement agent and Sheppard Mullin served as legal advisor for DCA.Music Business Worldwide