Skeptics might believe the music industry’s best days are behind it, but some institutional investors are snapping up catalogs of published songs that provide steady, recurring cash flows.
Pension funds and private equity firms have recently invested in some high-profile music assets, sparking concern by some industry executives that these nonstrategic investors could push up the prices of the best song catalogs.
Dutch fund ABP, the world’s third-largest state pension fund, this week bought the legendary Rodgers & Hammerstein catalog of songs from musicals including “The Sound of Music” and “The King and I.” Industry executives estimate the deal to be worth around $200 million.
ABP’s move came less than two weeks after private equity firm Pegasus Capital paid an estimated $55 million for Spirit Music…
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