US-based investment firm Shamrock Capital is best known in the music business for buying blockbuster copyrights (like Taylor Swift’s first six albums, which it acquired for around $300 million back in November 2020).
This week, Los Angeles-based Shamrock announced that it is selling what it calls a “passive minority equity interest” in its firm.
According to a press release issued on Wednesday (October 26), that interest has been acquired by RidgeLake Partners, a strategic partnership between Ottawa Avenue Private Capital and Apogem Capital, and Bonaccord Capital Partners.
Shamrock Capital, which has, according to its website, $3.8 billion of assets under management, invests exclusively in media, entertainment, communications, and related sectors through what it calls a “multi-fund strategy centered on private equity investments, as well as ownership and financing of content and media rights”.
The firm was originally founded in 1978 as the family investment company for the late Roy E. Disney and has since evolved into an institutionally backed firm.
In 2020, MBW reported that Shamrock Capital had raised $400m in a new fund – and that it intended to spend that money on entertainment IP, including music copyrights.
In November that year, Shamrock struck a ≈$300 million deal to buy the master rights to Taylor Swift’s first six albums.
Prior to its acquisition of Swift’s masters, one of the biggest music-related acquisitions for Shamrock came in 2018, when the company acquired a music publishing catalog owned by Stargate – the writers behind hits for Rihanna, Beyoncé, Katy Perry and more.
Shamrock says that the transaction announced this week will provide it with “long-term capital to support the ongoing growth and institutionalization of the platform”.
It added that there “will be no change” in the firm’s investment process, day-to-day management or operations.
In June 2021, the Los Angeles-based firm closed a $1 billion growth fund, entitled Shamrock Capital Growth Fund V.
In July 2021, Shamrock raised a new $196 million fund to offer loan structures to IP owners – i.e. advancing rights-holders sums that they then repay (with interest) via future royalties.
According to the press statement, RidgeLake focuses on acquiring minority equity stakes in top-tier middle-market private equity firms. Bonaccord, meanwhile, a subsidiary of P10, Inc., is a private equity platform dedicated to acquiring non-control equity interests in middle-market private market sponsors. Bonaccord Capital Partners has $41 billion in assets under management according to its website.
Evercore served as financial advisor and Kirkland & Ellis LLP served as legal counsel to Shamrock.
“RidgeLake and Bonaccord’s strategic investment in Shamrock is an important milestone in the continued development of our business.”
Steve Royer, Shamrock Capital
Steve Royer, President at Shamrock Capital, said: “RidgeLake and Bonaccord’s strategic investment in Shamrock is an important milestone in the continued development of our business.
“RidgeLake and its affiliates have been investing with Shamrock since 2005 and have been trusted partners for us through the course of our firm’s growth.
“We are excited about the opportunity to expand our relationship with RidgeLake, and look forward to a fruitful partnership with Bonaccord, as we believe that these firms are well-aligned with our long-term vision for Shamrock.”
“The depth of Shamrock’s relationships and experience in its core markets is unmatched and we believe their ability to partner with growth companies, founders, and creators globally will continue to thrive in the years ahead.”
Todd Milligan, RidgeLake Partners
Todd Milligan, Co-Head of RidgeLake Partners, added: “The depth of Shamrock’s relationships and experience in its core markets is unmatched and we believe their ability to partner with growth companies, founders, and creators globally will continue to thrive in the years ahead.
“We are thrilled to partner with Shamrock and look forward to supporting the successful, long-term growth of their unique investment platform,” added Michael Lunt, Co-Head of RidgeLake Partners.
“We believe in Shamrock’s vision, and we look forward to actively partnering with Shamrock to support its long-term strategic goals.”
Ajay Chitkara, Bonaccord
Ajay Chitkara, Managing Partner at Bonaccord, said: “We are proud to invest in Shamrock Capital, an exceptional middle-market sponsor with a consistent track record of investing in high quality assets across media, entertainment, and communications, delivering results to its limited partners for over twenty years.
“We believe in Shamrock’s vision, and we look forward to actively partnering with Shamrock to support its long-term strategic goals.”
Music Business Worldwide
