Create Music Group receives $165 million in backing from private equity firm Flexpoint Ford

Chicago-based private equity firm Flexpoint Ford said Tuesday that it invested $165 million Create a music group in a funding round that a source said values ​​Create at $1 billion.

Make plans to use the money to scale operations, expand services and fund acquisitions, CEO and founder said Jonathan Strauss.

“Flexpoint's investment will support our ambitious acquisition strategy, which will allow us to expand our market presence and build the scale to continue to provide unparalleled service to our customers and partners,” Strauss said in a statement. .

Founded in 2015, Hollywood-based Create Music Group operates Gen Z-focused digital entertainment and marketing agency and independent music distribution platform Label Engine, which earlier this year distributed Kanye West and Ty Dolla's collaborative album $ign Vultures 1.

Flexpoint Ford is a private equity firm with approximately $8.2 billion in assets under management that invests primarily in financial services and healthcare companies. Last year it announced investments in Nettwerk Music Group and a “significant investment” in Charles Goldstockcatalog and music asset acquisition company GoldState Music. Goldstuck also participated in Create's funding round, according to a statement.

“As a media company offering comprehensive support to artists, including distribution, marketing, financial solutions and audience engagement, Create Music Group has created a blueprint for the future of music,” said Flexpoint CEO Ford. Mike Morris.

Create's financial advisors on the deal were; Team Raineand Willkie Farr & Gallagher acted as legal counsel to Create. Flexpoint's legal counsel came from his company Reid Smith.