Or it might just result in the dilution of the pension fund’s equity in Concord. If Michigan State Retirement Systems is reluctant to bring more equity to the table, current efforts to raise equity capital could still result in a new equity sponsor and thus the sale of the company, according to those sources. In fact, in the summer of 2020, the company had turned to debt to raise additional $600 million in capital, a good chunk of which was used to pay down existing debt, leaving Concord with $380 million in availability at that time. Sources say that Concord had tried to get the Michigan State Retirement Systems to give it more funding through additional equity, but the pension fund offered less than what the company sought. Kobalt Sells Catalog Fund to New KKR Venture for $1.1 BillionĬoncord could also simply try to raise more equity. The retirement system has already been collecting steady large dividends from Concord, but if Concord hits a $5 billion valuation- likely the upper bound of what it might fetch, another source says-that would represent more than a three-fold return on the pension fund’s investment, Billboard estimates. Concord generates about $500 million in annual revenue - about $200 million from recorded music, $200 million from music publishing and $100 million from a theatrical arm.Ĭoncord is 93% owned by the gigantic Michigan State Retirement Systems, which has $94 billion in assets. But if the record label and music publisher does hit the auction block, it would be an attractive target for one of the three major record companies, some industry sources say, and an acquisition by one of the smaller majors could potentially change the power dynamics between them. Concord, one of music’s biggest independent companies, is exploring a sale, according to a source familiar with the situation – a deal that would likely top $4 billion if the full company were to trade, based on Billboard‘s estimates.Ĭoncord has been trying to raise additional funding to fuel further growth for some time, without necessarily selling the company outright, other sources say.

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