Searchlight strikes Chord with $400m deal for ZZ Top music-owner

The proprietor of opus catalogues produced by artists specified arsenic ZZ Top and Ellie Goulding is raising hundreds of millions of dollars successful a woody with the backstage equity steadfast Searchlight Capital.

Sky News has learnt that Chord Music Partners has struck an statement for Searchlight to put $400m successful the company, which is backed by Universal Music Group (UMG), the world's starring grounds label.

Industry sources said the woody was apt to beryllium announced this week.

Chord, which besides owns the rights to songs made by Lorde, The Weeknd and John Legend, precocious bought a involvement successful the catalogue of Morgan Wellen.

The institution is jointly owned by Dundee Partners, a household office, and UMG, with KKR, the backstage equity giant, having been a shareholder until past year.

The merchantability of KKR's involvement took spot astatine a valuation of $1.85bn.

It is the latest successful a glut of deals involving salient euphony rights, with a onshore drawback for invaluable amusement contented continuing to thrust prices higher.

Chord was formed successful 2021 and is expected to denote further catalogue acquisitions successful the coming months.

Sir Lucian Grainge, president and main enforcement of UMG, said astatine the clip of its Chord involvement purchase: "Finding partners who stock our passionateness for identifying iconic songs and recordings that volition basal the trial of clip and present semipermanent maturation is essential.

"We look guardant to creating maximum commercialized and originative worth for the songwriters and artists successful Chord and gathering for the future."

UMG declined to comment, portion neither Chord nor Searchlight could beryllium reached for comment.