Spain-born Larrosa Music Group has secured €15 million ($16m) for what it says is “the purchase of catalogs and the deployment of advances for Spanish-speaking markets”.
Larrosa describes itself as a “financing and technology consultancy for the Spanish-speaking music industry”.
Larrosa says that the investment “was led by investors from the United States and Spain” and that it is expected to “pave the way for the acquisition of mainstream catalogs, with a credit option of up to nine figures”.
In addition to seeking to acquire catalogs, Cristian Larrosa, CEO of Larrosa Music Group, says that this investment will allow his company to “buy future royalties, deploy advances,” and issue so-called “songshares” through US-based company Songvest.
‘SongShares’ are royalty share units, which the firm describes as “the first-ever fractional shares of music royalties” from hit songs by major recording artists.
Larrosa’s plans to acquire Spanish-language music rights follows last month’s news that four of the Top 20 best-selling singles globally in 2022 were performed predominantly in Spanish.
Elsewhere, in April 2022, MBW predicted that the recorded music market for Latin artists in the United States will generate over a billion dollars in revenue across the 12 months of 2022.
In November, new mid-year data published by the RIAA showed that on a retail basis, Latin Music was still on course to hit that $1 billion revenue threshold in the United States this year, after growing 23% in the first half of 2022, to reach $510 million.
“This investment reflects the confidence that investors have in our business model and our ability to lead the Spanish-speaking music market.”
“This investment reflects the confidence that investors have in our business model and our ability to lead the Spanish-speaking music market,” said Cristian Larrosa.
“We are excited about what the future holds, and we are committed to continuing to innovate and lead the market in the coming years.”
Also operating in the Latin Music M&A space is music investment group Wahoo Music, which launched in the US at the end of 2022 to buy Latin Music rights.
The firm’s first deal, via Wahoo Music Fund One, was a 50% stake in the publishing and recording catalogs of Oro Solido, described by the company as “one of the most popular merengue groups of the last two decades”. The deal was for an undisclosed sum.Music Business Worldwide