Brookfield Asset Management Inc., a global alternative asset manager, and Creative Artists Agency, an entertainment and sports agency, have partnered with Primary Wave Music, a private music publishing and talent management company.
Brookfield has purchased a minority interest in the company and will provide a $1.7 billion capital funding commitment, in a deal valued at over $2 billion. Creative Artists Agency has also become a minority shareholder in Primary Wave. Brookfield and CAA, with funds managed by Oaktree Capital Management, look to provide financial and creative relationships to Primary Wave with this partnership. The funds from Brookfield will be used for acquisitions of music IP. Larry Mestel, CEO and founder of Primary Wave Music, will continue to control the company alongside the rest of the management team.
“We are thrilled to deliver a comprehensive capital solution to Larry and the team at Primary Wave to support their continued acquisition of the world’s most iconic music IP,” comments Angelo Rufino, Brookfield managing partner. “Strong secular growth trends, scarcity value of assets and the continued penetration of music in new forms of content delivery underpin this significant commitment to the asset class.”
Allen & Company LLC acted as financial advisor to Primary Wave and Paul Hastings LLP served as legal advisor in connection with the transaction. Paul, Weiss represented Brookfield. CAA was represented by Kirkland & Ellis LLP.