KKR’s $1.1 Billion Acquisition of Kobalt Capital’s Music Rights Portfolio

Latham & Watkins represented KKR in the transaction. Manatt Represents Dundee Partners.

KKR, a leading global investment firm, and Kobalt Capital Limited (Kobalt Capital or KCL) have announced that KKR, together with its co-invest partner, Dundee Partners, the investment office of the Hendel family, have purchased the KMR Music Royalties II portfolio (Fund II or the Portfolio) from KCL for approximately US$1.1 billion. The Portfolio is comprised primarily of music publishing copyrights for established works and includes a diverse collection of over 62,000 copyrights by highly acclaimed artists and songwriters across Pop, Rock, Dance, Hip Hop, Country, and other genres. Kobalt Music Publishing will continue to administer and service the works in Fund II under a multi-year agreement.

KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic partners that manage hedge funds. 

Latham & Watkins represented KKR in the transaction with a cross-border corporate deal team led by New York partner Justin Hamill (Picture), London partner Kem Ihenacho, and Chicago partners Jonathan Solomon and Nathan Davis, with associates Julian Azran, Anika Amin, and Amrita Ahuja. Advice was also provided on structured finance matters by New York partner Kevin Fingeret and Chicago partner Ellen Marks; on entertainment, sports & media matters by Century City partner Jonathan West and London partner Lisbeth Savill, with associate Rachael Astin; and on tax matters by Bay Area partner Katharine Moir. 

The Manatt team was led by Manatt Entertainment partner and leader Jordan Bromley, partner Eric Custer and associate Beau Stapleton. The Manatt team also included Associates Jonathan Simmons, Arian Zadeh, John Meller, Naader Banki, Sean Kiernan, Alex Spring, Edward Osher, Natasha Azava, Mackenzie Pearson, Kendrick Coq and Emily Gelman; Senior Attorney W. Joseph Anderson; Law Clerk Suna Izgi; Copyright/Publishing Specialist Brian Sbardelli; Copyright Specialist Lumen Young; and Partner June DeHart.

Involved fees earner: Amrita Ahuja – Latham & Watkins; Anika Amin – Latham & Watkins; Rachael Astin – Latham & Watkins; Julian Azran – Latham & Watkins; Nathan Davis – Latham & Watkins; Kevin Fingeret – Latham & Watkins; Justin Hamill – Latham & Watkins; Kem Ihenacho – Latham & Watkins; Ellen Marks – Latham & Watkins; Katharine Moir – Latham & Watkins; Lisbeth Savill – Latham & Watkins; Jonathan Solomon – Latham & Watkins; Jonathan West – Latham & Watkins; Joseph Anderson – Manatt, Phelps & Phillips; Natasha Azava – Manatt, Phelps & Phillips; Naader Banki – Manatt, Phelps & Phillips; Jordan Bromley – Manatt, Phelps & Phillips; Eric Custer – Manatt, Phelps & Phillips; Emily Gelman – Manatt, Phelps & Phillips; Suna Izgi – Manatt, Phelps & Phillips; June Langston DeHart – Manatt, Phelps & Phillips; John Meller – Manatt, Phelps & Phillips; Mackenzie Pearson – Manatt, Phelps & Phillips; Jonathan Simmons – Manatt, Phelps & Phillips; Alex Spring – Manatt, Phelps & Phillips; Beau Stapleton – Manatt, Phelps & Phillips; Arian Zadeh – Manatt, Phelps & Phillips;

Law Firms: Latham & Watkins; Manatt, Phelps & Phillips;

Clients: Dundee Partners ; KKR;