Photo Credit: BMG+Concord

Apollo reveals that its managed funds and affiliates have provided a $1.25 billion equity capital solution to support the BMG+Concord merger.

American asset management firm Apollo Global Management has revealed that its managed funds and affiliates have provided an impressive $1.25 billion equity capital solution to support the recently completed combination of BMG and Concord. The maneuver gives Apollo a significant ownership stake in the BMG division that now owns Concord—money to help pay down asset-backed security (ABS) debt that Apollo helped line up in the first place.

Under the terms of the transaction, Apollo acquired a noncontrolling interest in a subsidiary of BMG, which holds the legacy Concord ABS, backed by a catalog of more than a million songs. Apollo’s equity investment enables BMG to repay certain outstanding ABS liabilities.

“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 positioning as it enters this exciting next chapter,” said Apollo Partner Jamshid Ehsani. “This transaction is indicative of Apollo’s growing role as a provider of high-grade capital solutions to leading corporations across an expanding range of industries and use cases, leveraging our scaled permanent capital base.”

“The combination of BMG and Concord marks a defining moment in our company’s evolution,” added BMG CEO Bob Valentine. “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. Together, we are building a stronger global music company with the scale, capabilities, and resources to capitalize on the opportunities ahead.”

Since 2022, Apollo has supported Concord’s issuance of over $4.5 billion of ABS debt through a long-term financing partnership. In the past five years, Apollo has originated over $8 billion in music industry investments.

Deutsche Bank served as financial advisor, and Lathan & Watkins LLP served as legal counsel to Apollo. Goldman Sachs served as financial advisor to BMG, while DLA Piper and Davis Polk served as legal counsel to BMG on the transaction.

BMG’s repertoire includes works by global artists, songwriters, composers, and playwrights, including will.i.am, Phil Collins, Tina Turner, Lin-Manuel Miranda, Jason Aldean, Jelly Roll, Evanescence, Kylie Minogue, Billie Holiday, Rodgers & Hammerstein, Creedence Clearwater Revival, Tennessee Williams, OneRepublic, Daddy Yankee, and Leonard Bernstein.

Headquartered in Nashville and with 18 offices worldwide, BMG is privately held and part of Bertelsmann, the international media, services, and education company, with a minority stake held by affiliates of Great Mountain Partners.