HarbourView Equity Partners Archives

Published on March 13, 2024March 18, 2024

3 mins read

HarbourView Secures $500 Million to Fuel Music Industry Investments

HarbourView Equity Partners, a leading investment firm in the sports, media, and entertainment space, has secured nearly $500 million in debt financing. This significant capital injection aims to propel the company’s expansion within the music industry.

The financing is unique as it leverages a strategy called “private securitization.” HarbourView’s existing portfolio of music royalties is essentially repackaged into financial instruments similar to bonds, attracting investments. This innovative approach demonstrates the value of intellectual property, particularly music rights, as a viable source of financial backing.

KKR, a renowned investment firm, spearheaded the financing, showcasing strong market interest in asset-based financing strategies, specifically within the entertainment sector. Participation from investment accounts advised by Kuvare Asset Management further bolsters the deal’s significance.

“We are thrilled to partner with KKR on this creative financing solution,” said HarbourView Founder and CEO Sherrese Clarke Soares. “This capital will empower us to pursue exciting new opportunities in the music industry while ensuring creators receive proper recognition for their contributions.”

This $500 million boost comes on the heels of HarbourView expanding its credit facility by $300 million in December 2023. Since its inception in 2021, the company has reportedly amassed $1.6 billion in managed assets and acquired over 50 music catalogs.

The debt financing strengthens HarbourView’s foothold in the music investment landscape. The additional capital allows them to:

Invest in new music assets and companies: This could involve acquiring music rights, funding music ventures, or partnering with music creators.
Capitalize on the growing music market: The music industry continues to experience significant growth, presenting lucrative investment opportunities.
Validate the potential of intellectual property: The deal underscores the financial viability of music rights as collateral, potentially paving the way for similar financing structures in the future.

This deal signifies a potentially significant shift in music industry financing. Traditionally, music rights haven’t held the same weight as tangible assets when seeking capital. However, HarbourView’s success in leveraging their music portfolio for debt financing demonstrates a growing acceptance of intellectual property as a valuable asset class. This could open doors for smaller rights holders and independent artists to explore similar financing options in the future.

Furthermore, the participation of prominent firms like KKR indicates growing institutional investor interest in the music sector. This increased investment activity could lead to a more robust music rights market, potentially benefiting creators through fairer valuations and increased opportunities for monetization.

It’s crucial to monitor the long-term effects of this financing approach. While it presents exciting possibilities, potential risks like overvaluation of music rights or complex financial structures warrant close observation.

by Tony O. Lawson

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Published on December 7, 2023December 7, 2023

3 mins read

HarbourView Equity Partners Boosts Credit Line to $100 Million for Music Catalog Acquisitions

HarbourView Equity Partners is a global alternative asset management firm focused on the media and entertainment industry. In a recent announcement, the firm revealed the expansion of its senior secured credit facility from $200 million to $300 million. This augmentation allows HarbourView to significantly enhance its capacity for strategic investments and acquisitions within the music domain.

The credit facility, initially led by Fifth Third Bank and inclusive of California Bank & Trust, MUFG Bank, Regions Bank, and BankUnited, has now welcomed three new lenders into its syndicate: Bank of America, Barclays, and First Bank & Trust Company. This augmentation of the lending consortium broadens HarbourView’s financial foundation, leveraging the support of additional financial institutions.

Sherrese Clarke Soares, CEO and founder of HarbourView Equity Partners expressed gratitude for the steadfast backing of their banking partners. “As capital conditions evolve, we are grateful for the continued support of our banking partners who have helped support HarbourView’s tremendous growth since inception,” highlighted Soares, acknowledging the pivotal role played by these partners in facilitating HarbourView’s expansion.

HarbourView has positioned itself as a dominant force in the music industry, with a track record of over 45 music catalog acquisitions. Their portfolio boasts more than 26,000 songs, encompassing both master recordings and publishing income streams. Notable acquisitions such as “Despacito” by Luis Fonsi and “Hot in Herre” by Nelly underscore their expertise in identifying valuable intellectual property.

The firm’s recent strategic move into the hip-hop genre was marked by the acquisition of select recorded music and publishing assets from hip-hop artist Wiz Khalifa. This expansion diversified HarbourView’s portfolio and fortified its presence in the thriving hip-hop market.

The $100 million debt facility injection further bolsters HarbourView’s financial resources, enabling the acquisition of high-value music catalogs. This strategic maneuver reflects the firm’s confidence in the music industry’s future and its commitment to sustained growth.

Beyond acquisitions, HarbourView emphasizes content optimization and legacy preservation. Their industrial platform actively licenses and optimizes acquired music assets, ensuring wide audience reach and maximum revenue generation. Moreover, the firm is dedicated to safeguarding the cultural significance of acquired music for future generations.

by Tony O. Lawson

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Published on July 7, 2023December 7, 2023

6 mins read

HarbourView Equity Partners: The Entertainment Asset Investing Firm to Watch

In recent years, there has been a growing trend of private equity firms and other investors acquiring music rights. This is driven by a number of factors, including the increasing value of music assets, and the growing demand for music streaming services.

According to reports, the global music streaming market size is expected to reach $103.07 billion by 2030. It is expected to expand at a CAGR of 14.7% from 2022 to 2030.

This growing interest can be seen as a positive trend for the music industry. It signifies a heightened demand for music and acknowledges the importance of compensating artists and songwriters for their creative endeavors. Additionally, this trend creates new opportunities for investors to participate in and contribute to the music industry.

HarbourView Equity Partners is a global investment firm focused on investment opportunities in the entertainment and media space. The firm was founded in 2021 by Sherrese Clarke Soares, a veteran investment banker with over 20 years of experience in the entertainment and media industry.

HarbourView Equity Partners’ investment strategy is to acquire music rights from artists and labels, and then leverage those rights in a variety of ways. This includes licensing the music for use in films, television shows, and commercials; creating new derivative works from the music; and distributing the music through digital platforms.

Since launching in 2021, the firm has acquired a diverse portfolio featuring thousands of titles spanning numerous genres, eras, and artists, and comprising over 20,000 songs across both master recordings and publishing income streams.

This month alone, HarbourView Equity Partners has made at least two high-profile acquisitions of music assets. Yesterday, the firm announced the acquisition of a royalty income stream of select recorded music assets from Grammy-winning rapper, Nelly. The deal included some of Nelly’s most popular tracks, such as “Hot in Herre” and “Dilemma.”

In a press release, Clarke Soares said, “This catalog has made an incredible impact on generations of fans. Works such as, ‘Hot in Herre’ and ‘Shake Ya Tailfeather’ defined an era of music of a unique blend of hip-hop, R&B, and country music that is undeniable. We are thrilled to add these influential pieces to our repertoire and work with the team to continue supporting the artistry within our ecosystem.”

That same day, the firm also announced that it had reached an agreement with Wiz Khalifa, for a portion of his catalog. The deal includes “See You Again,” “Black and Yellow,” and “The Thrill,” and spans “the rapper’s prolific career across dozens of albums, mixtapes, and collaborations with some of the biggest names in entertainment.” The financials of this exchange have yet to be revealed.

Clarke Soares spoke on the acquisition. “Wiz Khalifa has already made a profound impact on culture as a musician, executive, media visionary, and creative force,” she said. “We celebrate his talent and creativity and are thrilled to welcome him and his team to the HarbourView family today.”

Wiz Khalifa himself added, “Sherrese and HarbourView truly understand the value of music and artistry. We are excited to partner with them as they continue to build a dynamic media company that is in line with the values and goals we all have here.”

In addition to music assets, HarbourView Equity Partners also invests in other types of entertainment assets. In March, the firm made its first major investment in the film and TV space, announcing its investment in MACRO, the multi-platform media company, founded by Charles D. King.

This deal brings together two respected Black-owned businesses in the entertainment world. Both Soares and King share a common vision of promoting diversity and authenticity in content creation.

Harbourview’s investment is part of a new $90+ million investment in MACRO. The investment capital will be used to scale and expand operations across MACRO’s existing business verticals, and diversify its revenue streams.

The entertainment industry is constantly changing, but one thing that remains constant is the demand for music. As new technologies emerge and new ways of consuming music are developed, the value of music rights is only likely to increase.