Spirit Music Group Strikes $500M Deal With Northleaf Capital Partners

Strikes Deal With Northleaf Capital

SPIRIT MUSIC GROUP parent LYRIC CAPITAL GROUP and global investment firm NORTHLEAF CAPITAL PARTNERS have agreed to a $500M deal through which funds, managed by NORTHLEAF, will hold an interest in certain music royalty catalogs managed by LYRIC and led by JON SINGER, Managing Partner, and ROSS CAMERON, Partner.

The SPIRIT MUSIC GROUP portfolio is largely made up of mature music royalty assets managed by LYRIC CAPITAL GROUP and represents combined catalogs totaling over 100,000 songs. A company statement said “It is one of the largest and most diversified independent music portfolios. It includes catalogs with over 800 charted hits and more than 200 No.1 songs." 

Managing Partner, LYRIC CAPITAL GROUP, JON SINGER said, “From day one, SPIRIT has stayed committed to providing unparalleled service to our songwriters and business partners and we’re proud that the health of our company reflects that promise today. This strategic alliance allows us to continue to anticipate our clients’ needs in a constantly evolving  market and accelerate our growth strategy of investing in iconic catalogs, elevating new music and serving the needs of the songwriters who entrust us with their life’s work. We are excited to have Northleaf on board who share our  vision.”  

LYRIC CAPITAL GROUP Partner ROSS CAMERON said, "NORTHLEAF CAPITAL is the right long-term strategic partner for us as they bring strong creative sensibilities and private markets expertise as well as access to flexible capital to support our  growth strategies within the music royalty space. Our team is honored to continue serving the incredible songwriters that make up the Spirit and Lyric family during this exciting time.” 

NORTHLEAF Managing Director MICHAEL MORRIS added, “We are delighted to work with the team at LYRIC. Our collaboration represents a compelling opportunity in the music royalty space alongside a best-in-class operator. This is a rapidly growing and uncorrelated asset class that provides our investors with predictable and growing cash flows.”

EVP and Head of PRIVATE EQUITY AND CAPITAL SOLUTIONS, CDPQS, MARTIN LAGUERRE also commented, “We are  pleased to invest alongside NORTHLEAF in a diversified music royalties portfolio composed of firmly established assets under the solid management of LYRIC. This first investment in music royalties under our Capital Solutions strategy will leverage the sector’s positive long-term trends and provide stable cash flows and attractive capital protection for our clients.” 

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