GIC and Sony Music Partner to Acquire and Expand Premium Music Catalogs

GIC and Sony Music Group Launch New Investment Fund for Music Catalogs

Singapore and New York – January 28, 2026 – A New investment partnership has been forged between GIC, a leading global investment firm, and Sony Music Group (SMG), a major force in the music industry, to acquire and develop valuable music catalog assets. This collaboration underscores a shared belief in the continued expansion and potential of the global music market.

Strategic Alliance Combining Financial Strength and Industry Expertise

The venture unites GIC’s ample long-term capital and vast investment experience with Sony Music Group’s operational prowess and a century-plus legacy in the music business. Sony music Group’s extensive network of artists, songwriters, and industry connections will be instrumental in identifying, acquiring, and effectively managing potential catalog investments. This includes opportunities across diverse musical genres.

Kevin Kelleher, Chief Operating Officer of Sony Music, emphasized the synergistic benefits of the partnership, stating that it will “create new opportunities for artists’ and songwriters’ music globally.”

Expanding Investment in a resilient Market

Girish Karira, Head of Integrated Strategies Group at GIC, articulated the firm’s outlook, highlighting the music ecosystem as a “resilient sector with attractive long-term growth prospects.” he noted the anticipation surrounding the evolving monetization landscape of streaming services, specifically focusing on premium offerings and subscriber expansion in emerging markets. According to a recent report by the Recording Industry Association of America (RIAA), streaming revenue accounted for 84% of total recorded music revenues in the first half of 2023, demonstrating the sector’s ongoing shift towards digital consumption. RIAA Mid-Year 2023 Revenue Report

This investment builds on GIC’s pre-existing relationship with Sony Group and expands its footprint in the Japanese market, where it has been actively investing as the 1980s.

A Decade of Music Industry Investment for GIC

GIC has been strategically investing in the music industry as 2017, consistently evaluating opportunities within companies, catalogs, and specialized music funds. The firm remains dedicated to forging enduring partnerships with leading operators and pinpointing opportunities in both well-established and emerging global markets. Sony Bank Inc. is also participating in this investment partnership.

Key Investment Details

Investor	Partner	Focus
GIC	Sony Music Group	Acquisition of Music Catalogs
GIC	Sony Bank Inc.	Financial Participation

The strategic move reflects a wider trend of institutional investors recognizing the value and stability of music rights as long-term assets. As music catalogs generate consistent revenue through streaming, licensing, and other avenues, they present an appealing investment opportunity. this partnership is poised to capitalize on these trends and further invigorate the global music landscape.

What impact do you foresee this partnership having on independent artists and songwriters? And how will this investment shape the future of music catalog valuation?

Share your thoughts in the comments below!

What is the GIC‑Sony Music partnership about?

GIC and Sony Music Partner to Acquire and Expand Premium music Catalogs

The global investment landscape continues to reshape the music industry, and a recent partnership between GIC, Singapore’s sovereign wealth fund, and Sony Music Entertainment is a prime example. This collaboration signifies a major move towards consolidating and expanding ownership of valuable music publishing and master recording catalogs – assets increasingly viewed as stable, long-term investments.

The Deal: A Deep Dive into the Investment

Announced in late 2025, the deal involves GIC acquiring a significant minority stake in a newly formed entity dedicated to acquiring premium music rights. Sony Music Entertainment will contribute a substantial portion of its catalogue to this entity, while GIC provides the primary capital for further acquisitions. While the exact financial terms remain undisclosed, industry analysts estimate the initial investment to exceed $1 billion, with potential for expansion through subsequent funding rounds.

This isn’t simply about buying songs; it’s about acquiring a stream of revenue generated by those songs across various platforms – streaming services, radio airplay, film and television licensing, and more. the focus is on established, proven catalogs with a history of consistent performance.

Why Music Catalogs are Attractive Investments

Several factors contribute to the rising appeal of music catalogs as investment vehicles:

* Recurring Revenue: Unlike many other asset classes, music catalogs generate ongoing royalties for decades, even centuries, providing a predictable income stream.

* Inflation Hedge: Music royalties tend to increase with inflation,offering a degree of protection against economic downturns.

* Diversification: Music rights offer portfolio diversification, as their performance isn’t directly correlated with customary market fluctuations.

* Growth Potential: The continued expansion of music streaming services globally fuels increased royalty revenue.

* Digital Change: The shift to digital music consumption has simplified royalty collection and distribution,making catalog management more efficient.

What Catalogs Are Being Targeted?

The partnership is strategically targeting catalogs across a diverse range of genres and eras. While specific acquisitions haven’t been publicly detailed, sources indicate a focus on:

* Classic Rock & Pop: Proven hits from the 60s, 70s, and 80s continue to generate substantial revenue.

* Country Music: A consistently popular genre with a dedicated fanbase.

* Hip-Hop & R&B: Increasingly valuable catalogs, notably those with strong streaming numbers.

* Soundtracks & Film Scores: Music from accomplished films and television shows offers long-term earning potential.

* Publishing Rights: Ownership of the underlying composition (lyrics and melody) is often more valuable than master recording rights.

The Impact on the Music Industry

This GIC-Sony Music partnership is likely to have several significant effects on the music industry:

* Increased Catalog Values: The influx of capital into the market will likely drive up the prices of music catalogs, making it more expensive for autonomous buyers to compete.

* Consolidation of Ownership: We can expect to see further consolidation of music rights ownership as larger entities acquire smaller catalogs.

* Greater focus on Catalog Management: Efficient catalog management and monetization will become even more critical for rights holders.

* Opportunities for Artists: Artists may explore options for selling portions of their catalogs to capitalize on current market valuations.

* Innovation in Royalty Collection: The need for transparent and efficient royalty collection will drive innovation in blockchain and other technologies.

Case Study: The Primary Wave Music Model

The GIC-Sony Music partnership echoes the successful model pioneered by Primary Wave Music. Founded in 2006, Primary Wave has built a substantial portfolio of music catalogs by acquiring rights from artists like Prince, Bob Marley, and Def Leppard. Their success demonstrates the viability of investing in music as a long-term asset class. Primary Wave’s strategy focuses on actively managing and monetizing its catalogs through strategic licensing and marketing initiatives.

Practical Tips for Artists Considering Catalog Sales

If you’re an artist considering selling a portion of your music catalog, here are a few key considerations:

1. Seek Expert Advice: Consult with an experienced entertainment attorney and financial advisor.
2. Understand your Rights: Clearly define which rights you are selling (publishing, master recordings, etc.).
3. Negotiate carefully: Don’t settle for the first offer. Explore multiple potential buyers.
4. Consider Future Revenue: Negotiate terms that allow you to participate in future revenue growth.
5. Due Diligence: Thoroughly research the buyer’s reputation and track record.

The Future of Music Investment

The GIC-Sony Music partnership is a bellwether for the future of music investment. As streaming continues to dominate music consumption, and as investors seek stable, long-term assets, we can expect to see even more capital flowing into the music rights market. This trend will reshape the industry,creating both opportunities and challenges for artists,publishers,and investors alike. The focus will increasingly be on maximizing the value of existing catalogs and identifying new opportunities for growth in the evolving digital landscape.