Private equity firm New Mountain Capital is acquiring BMI

today28/11/2023 6

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Broadcast Music Incorporated (BMI), the world’s largest performing rights organisation, is being purchased by New Mountain Capital, a growth-oriented investment firm with over $45 billion in assets under management.

New Mountain will acquire the company from the current BMI shareholders, while also reserving additional capital “to fund growth investments, new ventures and technology enhancements to help accelerate BMI’s long-term plan to maxmise distributions for its affiliates and improve the service it provides to songwriters, composers and publishers.”

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Part of the agreement surrounding the purchase between New Mountain and BMI’s shareholders will be the allocation of $100 million of the proceeds of the sale to affiliates shortly after the transaction closing “in recognition of the creativity of the songwriters, composers and publishers [that BMI] have had the privilege to represent.”

The news of New Mountain Capital’s acquisition of BMI comes after the music rights organisation raised its fee share from 10% to 15% last month, a year after it had switched from its not-for-profit model to a for-profit operation.

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Mike O’Neill, BMI president and CEO, toasted the sale as “an exciting new chapter for BMI that puts [it] in the best possible position to stay ahead of the evolving industry and ensure the long-term success of our music creators.”

“New Mountain is an ideal partner because they believe in our mission and understand that the key to success for our company lies in delivering value to our affiliates. We are excited about the many ways New Mountain will accelerate our growth plan, bring new vision, technological expertise and an outstanding track record of strengthening businesses”.

The transaction is subject to approval by BMI shareholders and is expected to close by the end of the first quarter in 2024, with Goldman Sachs serving as a financial advisor to BMI.

Tibor Heskett is Mixmag’s Digital Intern, follow him on Twitter

Written by: Tim Hopkins

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