Information on the Target

Concord is a leading independent music company that operates across three primary segments: recording music, music publishing, and theatrical licensing. The company signs new recording artists and songwriters, managing a vast catalog of music. Concord aims to maximize the benefits for its artists through a global platform while maintaining a boutique feel.

In 2022, Concord executed a $1.8 billion asset-backed securitization (ABS), marking the largest and highest-rated ABS of music catalog rights at the time of issuance. This innovative financial structuring has positioned Concord to enhance its business growth through strategic acquisitions.

Industry Overview in the United States

The music industry in the United States has seen substantial transformation over the years, driven by digital streaming and technological advancements. The rise in streaming services has significantly altered how consumers access and experience music, leading to increased revenues for many music companies.

Independent music companies, like Concord, are benefiting from this evolution by offering unique services and platforms to artists. As the demand for diverse and original content increases, independent labels have gained a stronger foothold in the market, attracting artists who prefer control over their work.

Additionally, the theatrical licensing segment of the music industry is a growing sector, providing opportunities for music companies to expand further. The successful merging of traditional music catalog rights with innovative financial structures has created new revenue streams and growth potential for companies operating in this space.

As the industry continues to evolve, partnerships and collaborations will play a critical role in helping companies navigate the complexities of the modern music landscape. This collaborative approach is essential for seizing opportunities in a competitive marketplace.

The Rationale Behind the Deal

The $1.8 billion ABS structured by Apollo for Concord allows the company to access a more efficient market while providing flexible solutions for future acquisitions. This structure not only enhances Concord's financial position but also positions the company for scalable growth in acquiring new copyrights and royalties.

Following the initial securitization, Concord's ability to execute a strategic acquisition of Round Hill Music Royalty Fund, which added over 150,000 songs and 50 catalogs to its portfolio, underscores the effectiveness of the ABS structure in driving business growth.

Information About the Investor

Apollo is a prominent global investment firm with substantial expertise in financing complex deals. The firm has demonstrated an ability to understand various industries, including the music sector, which allows them to offer tailored financial solutions that meet specific business needs.

Apollo's involvement in the Concord deal exemplifies its commitment to partnering with innovative companies to help unlock considerable growth potential. Their understanding of the intricacies of the music business ultimately adds value to their investment strategy.

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This deal presents a compelling investment opportunity for Concord, as it provides the necessary capital to grow and thrive in a rapidly changing industry. The asset-backed securitization facilitated by Apollo has proven advantageous, offering the company a scalable and flexible financial solution.

Moreover, Concord's strategic acquisition possibilities have grown thanks to the strong financing structure established with Apollo. The successful addition of Round Hill Music to their portfolio marks a significant achievement and emphasizes the forward-thinking approach of the investment.

The partnership between Concord and Apollo is integral to future initiatives within the music industry, allowing Concord to maintain its independence while accessing vital resources for growth. The continuous dialogue between both parties ensures that Concord remains agile in adapting to market changes.

In conclusion, this deal is a textbook example of how innovative financial structuring can lead to successful acquisitions and substantial growth in the music industry. The combination of Concord's strategic vision and Apollo's financial acumen makes this an investment with strong potential for long-term success.

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