New Mountain Capital has closed its acquisition of BMI, and while the price has not been disclosed, the deal will ultimately result in a $100 million payment from the proceeds to affiliates — songwriters and publishers — of the performance rights organization.
“Our partnership with New Mountain Charts charts an incredibly exciting new course for BMI and our songwriters, composers and publishers,” BMI president and CEO Mike O'Neill he said in a statement. “New Mountain shares our vision to build value for our subsidiaries and invest in their future success. With their support, advanced level of innovation and resources, we are now in the best possible position to accelerate our growth plan and explore new opportunities for the benefit of our creative community.”
O'Neill will remain at the helm under the new ownership.
The distribution of $100 million is expected to take place this spring, the company said. Although not an entitlement distribution, the allocation will be in accordance with BMI's distribution methodologies, which are based on performance levels over a specified period of time.
New Mountain Capital is a New York-based investment firm with $45 billion in assets under management.
“We are excited to officially begin our partnership with BMI,” New Mountain CEO Pete Masucci he said. “We believe in BMI's mission and the music creators they represent, and look forward to helping BMI build on its momentum to deliver maximum value to their affiliates.”
Meanwhile, director of New Mountain Mike Osinski added that O'Neill and BMI's management team have charted a “dynamic path forward” for BMI, adding: “We are excited to help modernize the performance rights space and support BMI's mission to serve songwriters, composers and publishers and increase their royalty distributions for the long term.”
The acquisition is not without controversy as BMI changed its model from non-profit to for-profit, a move that has raised concerns among songwriters and publishers.
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