Apollo Backs BMG & Concord Integration With $1.25 Billion in Financing

Apollo Global Management has invested $1.25 billion to aid the integration of Concord into BMG, becoming a minority investor in a portion of Concord's former catalog, according to an announcement on Thursday (September 17). Apollo has served as Concord's lead partner in issuing asset-backed securities (ABS), managing four Concord ABS notes valued at more than $4.5 billion since 2022.

A portion of the $1.25 billion will be used to repay some of Concord's existing ABS debt, while Apollo will receive equity in a BMG subsidiary holding the old Concord ABS and the related songs. Speaking on the deal, BMG CEO Bob Valentine stated, "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." The merger of BMG and Concord, one of the largest music acquisitions in recent years, was finalized on September 1 after obtaining regulatory approval.

The newly formed entity now controls over 4 million works in its catalog, featuring artists from BMG like Jelly Roll and Lainey Wilson, as well as songs by Concord such as Creedence Clearwater Revival and R.E.M. BMG remains privately owned, with Bertelsmann holding a 67% stake, while the remaining 33% is owned by affiliates of Great Mountain Partners.

Apollo partner Jamshid Ehsani commented, "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 standing as it embarks on this promising future." Financial advice for the transaction was provided by Deutsche Bank, while legal counsel was supplied by Latham & Watkins LLP.

For BMG's part, Goldman Sachs offered financial guidance, and DLA Piper and Davis Polk represented the firm in a legal capacity.