Domain Capital officially launches $700 million entertainment fund

Atlanta, Georgia. Credit: Brad Hutteman

Back in May, Sony Music Publishing (SMP) signed songwriter Ashley Gorley “in partnership with” Atlanta-based investment firm Domain Capital Group. Now Domain says it has retired $700 million in “equity commitments” for its entertainment fund.

Domain Capital (along with its subsidiary, Domain Capital Advisors) recently announced commitments valued at “more than $700 million” through a formal announcement. Having already spent $170 million, Domain reiterated that it will seek to invest the remaining capital in film, television and music in the future.

The focus on music is relatively new, with bosses taking the opportunity to note that a previously deployed $830 million fund was “principally” targeting film and television fortunes. Additionally, executives appear open to making certain games outside of the three entertainment areas listed above, as they have acknowledged an “allocation to other related investment opportunities.”

But specifically on the music front, Domain Capital will join a number of other companies to continue acquiring song rights, alongside participating in “long-term partnerships across a variety of structures to support new content creation.” according to publication.

On the occasion of the official launch of the $700 million fund, Anthony Tittanegro, Managing Director of Domain Capital for 12 years, addressed the perceived long-term potential of entertainment as an asset class in a statement.

“We are pleased to launch our first diversified private entertainment licensing fund,” he said. “At a time of continued growth in the entertainment industry, supported by an ever-evolving landscape of distribution channels, we are focused on building a diversified asset base to generate cash returns and preserve our investors’ capital.”

Despite the difficult economic climate and some signs of a slowdown in the previously red-hot catalog sphere, song rights deals continue to pour in.

After Primary Wave announced in October it would close a whopping $600 million in music IP purchases ahead of the close of 2022, Primary Wave yesterday (following a massive investment by Brookfield and CAA) unveiled a “multi-million dollar” Deal for Huey Lewis and The News catalogue.

In October, Reservoir Media also acquired the rights to songwriter Louis Prima’s complete works, and Influence Media Partners struck a deal with Blake Shelton. September has already delivered a slew of different deals — including Concord’s alleged $300 million deal for Genesis’ recorded and published catalogs — and Pink Floyd is reportedly continuing to negotiate its own long-rumored deal, though it hit several unforeseen ones in the process encounters obstacles.

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