It seems the race is still on for catalogue acquisitions as HarbourView Equity Partners has taken a stake in the royalty income stream of St. Loius rapper Nelly music assets. Since the Country Grammar artist’s debut album in 2000, he has sold more than 27 million album consumption units in the United States alone.
TMZ reported that HarbourView acquired a 50% stake in the royalty income stream for a reported sum of $50 million. However, a representative from HarbourView declined to comment on the details mentioned in the TMZ report.
HarbourView’s founder Sherrese Clarke Soares, is the daughter of Jamaican immigrants who got $1bn from Apollo Global Management to invest in music acquisition.
The agreement includes Nelly’s rights in some of his most iconic tracks, such as “Ride Wit Me,” “Dilemma” featuring Kelly Rowland, and the chart-topping sensation “Hot in Herre.” Both “Hot in Herre” and “Dilemma” dominated the Billboard Hot 100 chart for seven and ten weeks respectively.
Soares, who grew bop in Queens New York expressed her excitement about the acquisition, stating, “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 with 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.”
HarbourView, which has been operational for two years, has been actively expanding its portfolio. Currently, it boasts a diverse catalog of approximately 20,000 songs, encompassing both master recordings and publishing income streams. The investment firm is also part of a consortium vying for a majority stake in BET Media Group from Paramount Global.
The career financier who worked at Morgan Stanley for more than ten years is backed by Apollo Global Management along with other investors looking to reap long term benefits as music becomes a viable asset class.
“The goal for HarbourView is to be a Private Equity enhancement management firm, focus on the things I know well, which is finance and culture,” Sherrese told World Music Views in an exclusive interview.
For the last three years music catalogues, publishing, image and likeness acquisitions have taken up the pages of every financial media publication, as the commercial value of intellectual property becomes a hot commodity on Wall Street due to lowered interest rates.
Big acquisitive players include the major labels, Blackstone, KKR and Hipgnosis in the U.K raised more than £1bn to buy up catalogues from artists including Neil Young.
Even the Church Of England CCLA has become an investor in the catalogues of artists all over Europe and America.
Other artists like Iggy Azalea, Justin Bieber, John Legend, Tina Turner, Neil Diamond, Sting, Bruce Springsteen, Paul Simon, Stevie Nicks, Justin Timberlake and more have sold their life’s work for eye-popping sums of money: The James Brown Estate reportedly walked away with $90 million from Primary Wave after a fifteen year contentious internal battle.
HarbourView’s slogan is “Content Is Queen” and their current portfolio includes Despacito, YouTube’s most viewed song which is the subject of a copyright infringement lawsuit filed in Los Angeles Central District Court by 80s dancehall pioneer producers Steely & Clevie. The company acquired the rights for the song after buying singer/songwriter Luis Fonsi’s catalogue for a reported $100 million, a figure she told WMV that was neither confirmed or denied.
Apart from his success in R&B, hip-hop, and pop, Nelly has ventured into the country genre with his eighth studio album, titled Heartland. Reflecting on the deal with HarbourView, Nelly stated, “As artists, we put our heart and soul into each track, and there comes a time when you consider the preservation of that artistry. My music is my legacy, which I want to last beyond me, continuing to make my existing fans happy while reaching new generations and new audiences. I am excited to partner with HarbourView to create opportunities for the discovery of my music decades from now.”
The artist was represented by Steven Shapiro of Davis Shapiro Lewit & Grabel LLP throughout the negotiation process, according to the announcement.
This deal not only signifies the value and enduring influence of Nelly’s music but also highlights the growing trend of artists and investors collaborating to secure the future of musical legacies. HarbourView’s strategic acquisition sets the stage for a partnership aimed at preserving Nelly’s artistic contributions while opening doors for the exploration and appreciation of his music by future generations.
