Primary Wave closes $2.225bn music rights fund as royalty investment surges

The fund, Primary Wave Music IP Fund 4, is the fourth consecutive oversubscribed vehicle launched by the company, which described it as the largest dedicated closed-end music royalties fund raised in the industry to date.

According to the company, the capital was raised from a global investor base that includes insurance firms, pension funds, endowments and large family offices. Primary Wave is also a strategic partner of Brookfield Asset Management.

The fundraising comes amid an expansion phase for the company, which has increasingly positioned itself as a major consolidator of music intellectual property.

In March, Primary Wave announced an agreement to acquire Kobalt, one of the world’s largest independent music publishing and technology platforms, from Francisco Partners. The deal, which includes investment from Brookfield, is expected to close in the third quarter of 2026.

The company said Fund 4 reflects “the deepening institutional recognition of music intellectual property (IP) as a differentiated and scalable asset class and specifically Primary Wave’s ability to partner with unique artists and enhance the value of those rights.”

Fund 4 has already deployed approximately $700 million across more than 65 single-artist catalogues. These include rights linked to The Notorious B.I.G., Village People, Neil Sedaka, Itzhak Perlman, Ric Ocasek, The Cars, Robert “Kool” Bell, Gilberto Gil, Thin Lizzy and Dave Brubeck.

Larry Mestel, chief executive of Primary Wave Music, said the result reinforced the company’s strategy.

“This fundraise validates both the platform we have built at Primary Wave and our conviction that an active, aggressive hands-on approach to marketing music is what drives superior long-term returns for our investors and growth in value to our artists,” he said.

Craig Noble, chief executive of Brookfield’s credit business, said the firm’s strategy had proven effective in attracting institutional capital.

“Primary Wave has built a category-defining platform in music IP, with a clear track record of sourcing, scaling, and enhancing high-quality assets,” he said. “The success of this fundraise reflects both the strength of their strategy and the growing role of music royalties within institutional portfolios.”

President of Primary Wave IP Investment Management, Bill Cisneros added: “We are thrilled with this exceptional result, and most importantly with the group of thought leading global institutional investors which has joined us in Fund 4.”

The latest fund marks a significant increase in scale for Primary Wave’s investment strategy. The company raised around $300 million for its first fund in 2016, followed by $500 million for its second fund in 2019. Its third fund, launched in 2021, was reportedly backed with approximately $800 million in capital.

Primary Wave’s model focuses on acquiring music rights and increasing their value through marketing, branding, synchronisation licensing, digital distribution, content development and live or experiential activations.

Its acquisition capacity was significantly expanded in 2022 through a $2 billion partnership with Brookfield Asset Management, which took a minority stake in the company and committed $1.7 billion to a permanent capital vehicle for music rights acquisitions. Brookfield manages more than $1 trillion in assets across infrastructure, energy, private equity, real estate and credit.

Founded in 2006 by Mestel, Primary Wave’s catalogue includes rights associated with artists such as Prince, Bob Marley, Whitney Houston, Stevie Nicks, James Brown, Smokey Robinson, Ray Charles, Def Leppard and Aerosmith. The company estimates its holdings include more than 1,000 Top 10 singles and over 400 number-one hits.

In recent years, the firm has expanded beyond catalogue acquisitions. It has invested in music financing platform RUN, which provides advances of up to $25 million, and has made strategic moves in international markets including Vietnam’s POPS Music and Brazil’s Nas Nuvens Music Group.

Fund 4 further extends Primary Wave’s position in the growing market for music rights, as institutional investors continue to increase exposure to royalties as an alternative asset class.