Stay informed with free updates
Simply sign up to the Media myFT Digest — delivered directly to your inbox.
Sony and Singapore’s sovereign wealth fund GIC will form a joint venture to invest more than $1bn in music catalogues, in the latest tie-up between media giants and money managers for a lucrative corner of the entertainment market.
The venture aims to buy music copyrights across a range of genres, the companies said on Thursday without disclosing the amount committed. People with knowledge of the agreement said it would be more than $1bn.
Song rights have become an attractive asset class for professional investors in recent years as streaming has resuscitated the music industry. Wall Street firms including Blackstone, Apollo and KKR have invested billions of dollars in music catalogues.
Last year, Warner Music and Bain Capital formed a $1.2bn joint venture to acquire rights to the work of artists including the Red Hot Chili Peppers, while Universal Music and Dundee Partners agreed a similar partnership in 2024.
“The music ecosystem is a resilient sector with attractive long-term growth prospects and we are excited about the next stage of streaming monetisation through premiumisation and subscriber growth in emerging markets,” said Girish Karira, head of the integrated strategies group at GIC.
Songs from catalogues comprise a rising share of music consumption, especially in more developed western markets, as younger generations turn to older songs on streaming services.
Sony Music has emerged as one of the most acquisitive companies for music rights, especially from the best-known older acts. In 2024, it completed deals worth more than $2.5bn for songs by the likes of Queen and Pink Floyd.
Despite growing competition from private equity-backed firms, Sony Music has also bought up rights in recent years for the work of Michael Jackson, Bob Dylan, Bruce Springsteen and Paul Simon.
Kevin Kelleher, Sony Music’s chief operating officer, said: “Partnering with GIC brings together long-term capital and Sony Music Group’s operational capabilities to acquire and manage premier catalogues, creating new opportunities for artists’ and songwriters’ music globally.”
GIC was set up in 1981 to manage Singapore’s reserves. While it does not disclose its size, the fund is estimated to have more than $900bn in assets under management.
Over the years, it has become one of the most active sovereign wealth funds, with investments spanning from technology to infrastructure.
It has been investing in the music industry for nearly a decade and has been deploying capital in Japan since the 1980s.
