Nettwerk Unveils $300M+ Create-Powered ‘Management Buyout’

Photo Credit: Nettwerk Music Group

Six years after repurchasing ownership from HBC – and three years after scoring a Flexpoint investment – Nettwerk Music has revealed plans for a Create Music-powered management buyout.

Vancouver-headquartered Nettwerk and LA-based Create formally disclosed the newest of those deals today. Per the companies, the transaction is specifically “a management buyout from [Nettwerk’s] existing investors.”

And as highlighted, it’s capital from Create – to the tune of a $300 million upfront investment in Nettwerk – that’s fueling the play. (Besides taking a stake in Nettwerk, the above-noted Flexpoint also led the $165 million round that Create scored back in June 2024.)

Though the involved entities didn’t divulge too many details in their announcement, they did indicate that Create “will provide access to substantial follow-on capital and support services” after the deal wraps later in February.

Regarding what the arrangement will look like in practice, 42-year-old Nettwerk is expected “to retain its identity and independence in the market” while continuing “to manage day-to-day operations, signings and artist development efforts.”

Nevertheless, that massive deals tend to usher in personnel shifts isn’t exactly a secret; time will tell how Nettwerk’s team changes post-buyout.

But already, about-page mentions of Nettwerk label president Ric Arboit (whose name was featured prominently early last month, Wayback Machine screengrabs show) are no longer present.

In the bigger picture, Create will provide support on the infrastructure, distribution, and label services fronts, the businesses summed up.

“We’re excited about this next chapter in Nettwerk’s journey,” stated Nettwerk co-founder and CEO Terry McBride. “Partnering with Create allows us to continue to build on our foundation, grow our capabilities, and provide even more value to the artists we represent — while staying true to our roots as an artist-focused, independent Canadian label.”

Additionally, in remarks of his own, Create co-founder and CEO Jonathan Strauss underscored plans to drive “continued global growth” for Nettwerk.

“Terry and his team at Nettwerk have built one of the most enduring and influential independent music companies in the modern era. We are excited to put all of the resources at our disposal behind Terry and his management team to fuel Nettwerk’s continued global growth,” said Strauss, whose company in November rolled out a $500 million fund with Circuit Group.