Apollo Backs BMG & Concord Integration With $1.25 Billion in Financing

Apollo Global Management has provided $1.25 billion from funds it manages to support the smooth integration of Concord into BMG, and in exchange Apollo becomes a minority investor in part of Concord’s old catalog, the company announced Thursday (Sept. 17).

Apollo has been Concord’s primary partner in issuing asset backed securities (ABS), with the global investment firm having handled four Concord ABS notes worth more than $4.5 billion combined since 2022. Part of the financing Apollo committed will go to repaying some of Concord’s outstanding ABS debt, while Apollo will get equity in a BMG subsidiary that holds the old Concord ABS and the songs that were used to collateralize the security.

“The combination of BMG and Concord marks a defining moment in our company’s evolution,” said Bob Valentine, CEO of BMG and formerly head of Concord. “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.”

BMG completed the acquisition of Concord — one of the biggest music mergers in the past decade — on Sept. 1 after receiving regulatory approval. The combined company holds more than 4 million works in its catalog, with BMG representing artists including Jelly Roll and Lainey Wilson, and Concord owning songs by Creedence Clearwater Revival and R.E.M, among many others. BMG remains privately held with media giant Bertelsmann holding a 67% stake. The remaining 33% stake is held by affiliates of Great Mountain Partners.

Apollo partner Jamshid Ehsani added, “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.”

Apollo’s financial adviser on the deal was Deutsche Bank and its legal counsel was provided by Latham & Watkins LLP. BMG received financial advice from Goldman Sachs, and DLA Piper and Davis Polk served as its legal counsel.