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Rising interest rates rock private equity’s billion-dollar bets on music

Wall Street firms that had been vying to snap up song rights have slowed their buying considerably

In the span of just one week in October 2021, some of the world’s biggest private equity groups — Blackstone, KKR and Apollo — collectively poured more than $3bn into buying music. 

Blackstone announced that it had set aside $1bn to buy music in partnership with Merck Mercuriadis’s Hipgnosis investment trust, noting his “vision and dynamism”. KKR said it was “thrilled” to acquire some 62,000 songs for $1.1bn, which followed a $1bn fund it had arranged with music group BMG earlier that year. Apollo put up $1bn to buy songs with a new investment group called HarbourView.

These were relatively trivial amounts for the three giants, which command more than $2tn in assets across investments ranging from fast-food chains and toy retailers to dentistry practices and prisons.

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