Morgan Stanley has invested over $700 million to acquire music catalogs in partnership with Kobalt, a digital-focused publishing administration company.
This collaboration will involve Kobalt handling creative, sync, licensing, administration, and investment services for the copyrights they acquire.
The deal was advised by Goldman Sachs and marks Kobalt’s return to managing investments for external capital after previously selling two funds. One of these funds, containing songs from artists like Lindsey Buckingham and 50 Cent, was sold to Hipgnosis Songs Fund in 2020 for $323 million.
The second fund, Kobalt Music Royalty Fund II, was sold to a group including KKR and Dundee Partners for $1.1 billion. Morgan Stanley’s Tactical Value Fund focuses on niche alternative assets, including music intellectual property.
This $700 million investment ranks among the largest in the music IP industry, with other significant investments in the past year by companies like Primary Wave and BMG.
