Domain Capital Group Raises $768 Million for Entertainment Fund

Atlanta, where Domain Capital Group is headquartered. Photo Credit: Joao Costa

Months after coordinating with Sony Music to acquire Miranda Lambert’s catalog, Domain Capital has wrapped a $768 million raise for its second entertainment fund.

Domain formally disclosed the equity fundraise – and emphasized its relationships with “notable partners” including Sony Music Publishing – today. Though the Lambert deal is still front of mind, Domain has now taken stakes in the IP of Thomas Rhett, Ashley Gorley, Iggy Azalea, and others.

And given Domain’s latest announcement, it seems safe to predict that additional purchases yet are in the cards. Also unsurprising: The firm’s newly reiterated “bullish outlook on media, entertainment and technology investments.”

Of course, the focus on media, entertainment, and tech means Domain, like HarbourView and more, isn’t solely investing in song catalogs. Films (including via a Paramount Pictures pact), TV shows, literary works, theatrical productions, and sports IP are on the radar as well, the entity noted.

(Domain Capital, manager Bill Simmons, and others earlier in March rolled out a namesake management unit with Brad Paisley aboard as the “flagship client.”)

“We are pleased to announce the successful close of our second entertainment fund,” added Domain MD Pete Chiappetta. “The entertainment industry continues to experience dynamic growth driven by an evolving distribution landscape and global demand for content.

“With this fund, we aim to build a diversified portfolio of high-quality assets that generate cash yield and preserve our investors’ capital under different market conditions,” Chiappetta proceeded.

Shifting to the bigger catalog picture, Domain’s announcement raises an interesting question: How much capital is flying around the still-hot sub-sector?

The short answer: many billions of dollars. The longer answer: It was only in January that the aforementioned Sony Music unveiled a multibillion-dollar song rights fund with Singapore’s GIC.

And as compiled in DMN Pro’s Funding Tracker, Warner Music’s and Bain’s $1.65 billion war chest, Duetti’s $200 million raise, Circuit Capital’s $500 million tranche, and Rostrum Pacific’s $150 million round represent just a portion of the space’s earmarked funds.

At the intersection of the undeployed capital and the many existing catalog agreements, one could safely argue that the era of “mega” IP sales is through.

Nevertheless, blockbuster transactions haven’t ceased; recent sales involving The Weeknd and Jason Aldean come to mind. Additionally, while Warner and Bain have yet to reveal their initial acquisitions, they’re expected to do so sooner rather than later.

More immediately, overall dealmaking volume certainly isn’t letting up: Multiple players are exclusively targeting the indie side, and as underscored by One Seven Music’s sale to Sony Music as well as Primary Wave’s Kobalt buyout, IP-heavy operations are continuing to find new owners.