Apollo Invests $1.25 Billion in Equity Capital Into BMG-Concord Merger

Asset management firm Apollo Global Management is backing the BMG-Concord merger with $1.25 billion of equity capital. The money is hedged against a catalog of massive artists including The Beatles, Beyoncé, Bruno Mars, and Carrie Underwood.

Background:

• Apollo’s financial relationship with Concord goes back to 2022.

• During that time, the firm has issued over $4.5 billion in asset-backed securities (ABS) to Concord.

• Apollo has invested $8 billion in music projects over the past five years.

The details:

• This investment will help BMG pay off ABS liabilities.

• Deutsche Bank was financial advisor and Latham & Watkins LLP was legal counsel to Apollo.

• Goldman Sachs was financial advisor to BMG, and DLA Piper and Davis Polk were legal counsel to BMG throughout the investment deal.

What they said:

• Apollo Partner Jamshid Ehsani: “We are pleased to support the transformative combination of BMG and Concord through a tailored, non-dilutive equity investment that strengthens the combined company's financial positioning as it enters this exciting next chapter. This transaction is indicative of Apollo's growing role as a provider of high-grade capital solutions to leading corporations across an expanding range of industries and use cases, leveraging our scaled permanent capital base.”

• BMG CEO Bob Valentine: “The combination of BMG and Concord marks a defining moment in our company’s evolution. Apollo's continued partnership and confidence in our strategy further strengthens our financial foundation and positions us to champion artists and songwriters, and to pursue global long-term growth opportunities. Together, we are building a stronger global music company with the scale, capabilities, and resources to capitalise on the opportunities ahead.”