Litmus Music launches with $500 million in funding from Carlyle

The red-hot music rights space has a major new addition in Litmus Music, launched by veteran music executives Hank Forsyth (pictured left) and Dan McCarroll (right) with $500 million in funding in partnership with Carlyle Global Credit. diversity can reveal. Litmus will acquire and manage music rights for both recorded and published music, spanning multiple genres and vintages. The company has been quietly building its pipeline for months and plans to announce initial deals in the coming weeks.

“It’s an honor to work with Dan and build what we’ve talked about for years – a music company and team built on integrity and trust,” said Litmus co-founder/CEO Forsyth, who previously held senior positions at Warner Chappell active was music, EMI music and Blue Note Records. “These core values ​​of litmus are shared by Carlyle, and we believe they are the best partners to support our team as we begin this journey.”

“Our incredible team is all about working together and building a collection of timeless music and unforgettable songs that will enrich people’s lives for years to come,” said McCarroll, co-founder and chief creative officer of Litmus, former president of Warner Bros. and Capitol Records, most recently Global Head of Originals and Artist Relations at Amazon Music.

Music rights have grown into a multi-billion dollar business in recent years and show no signs of slowing down, thanks to large investments from Merck Mercuriadis’ Hipgnosis Songs Fund, Primary Wave, KKR&Co, HarbourView Equity Partners and others. The major music companies have also splurged on catalog acquisitions, including Sony Music’s 2021 purchase of Bruce Springsteen’s recorded music and release catalog for a reported $500 million.

For Litmus, the initial commitment from Carlyle Global Credit of $500 million will be in the form of equity and debt and management committed capital. “Our partnership with Hank and Dan, two highly regarded music industry executives, underscores the value we see in music rights, driven by strong tailwinds and the uncorrelated nature of the asset class,” said the company’s chief executive, Matt Settle. “Streaming and other new media have opened up more ways than ever to consume content and we believe Litmus has the right mix of skills, experience and connectivity to build a successful and differentiated business and care for works, that people have been creating all their lives.”