BlackRock Inc. and Warner Music Group have teamed up with Influence Media Partners LLC to create a music-rights platform that will invest in and manage music created by well-known songwriters and artists.
Influence Media will manage the platform with a “strategic focus on cultivating the ‘modern evergreen’ contemporary compositions that have strong potential for a multidecade impact on pop culture as well investing in female artists and songwriters with an emphasis on diversity,” a news release from the New York-based firm said.
BlackRock and Warner Music Group invested a total of $750 million in the venture, said a source with knowledge of the investment who asked not to be named.
The source declined to say how much each New York-based firm invested and when the investments were made.
So far, $300 million has been spent on acquiring copyrights and future compositions, Influence Media said in the news release.
Among the initial acquisitions is work from Skyler Stonestreet, who has co-written “smashes” for Dua Lipa, Justin Bieber and Ariana Grande.
“We are excited to be part of this programmatic venture alongside Influence Media and Warner Music Group,” said Pam Chan, CIO and global head of BlackRock’s alternative solutions group, part of the firm’s alternative investors unit, in the release.
“Building on our experience investing in music since 2015, this investment gives our clients access to an emerging asset class with potential for meaningful income and uncorrelated returns, while aligning with our priority to invest in diverse and female-owned businesses,” Ms. Chan added.
BlackRock managed a total of $10.01 trillion as of Dec. 31, of which about $300 billion was invested in or committed to alternative investments.