BMI is reportedly contemplating a suggestion to promote to personal fairness agency New Mountain Capital for $1.7 billion.
Non-public fairness agency New Mountain Capital is trying to purchase efficiency rights group Broadcast Music Inc. (BMI) to the tune of $1.7 billion, sources near the scenario inform Billboard. The deal is but to be signed, whereas New Mountain Capital has entered an unique window to look it over.
Sources point out that New Mountain Capital pays round $1.7 billion for BMI if the deal closes. In its first yr as a for-profit entity, the efficiency rights group claimed $145 million in earnings earlier than curiosity, taxes, depreciation, and amortization.
New Mountain Capital’s web site says the agency has $40 billion in property below administration and makes use of a “growth-oriented, value-add funding strategy, relatively than reliance on extreme danger, as the very best path to excessive and constant long-term returns.” The agency has invested in industries together with software program, enterprise companies, info and information, logistics, and monetary companies, amongst others.
BMI first introduced it was promoting itself in October final yr because it transitioned from a not-for-profit entity to a for-profit firm.
Earlier than switching to a for-profit mannequin, BMI reported in its fiscal 2022 that it collected $1.573 billion, with distributions totaling $1.471 billion. Many songwriters and publishers have questioned the corporate’s transfer, regardless of BMI stating that the shift will allow spending more cash on creating know-how and infrastructure to assist songwriters higher.
Bidders throwing their hat within the ring for BMI are mentioned to have included Apollo International Administration, Brookfield Asset Administration and its music funding Main Wave, and RedBird Capital Companions. Sources say Moelis & Co. has facilitated recommendation to New Mountain within the deal, whereas BMI acknowledges hiring Goldman Sachs to discover its strategic partnerships.
Till this yr’s shift to a for-profit firm, BMI has operated as a not-for-profit group since its formation in 1940, paying out the cash it collects to songwriters and publishers. BMI president Mike O’Neill says that in pursuing a BMI sale, the corporate will “make sure that any associate embraces our mission of prioritizing the pursuits of songwriters, together with their monetary success.”