Rising interest rates rates put a freeze on the purchases of music catalogs by private-equity backed businesses, The Financial Times reported Thursday.
Wall Street giants KKR, Apollo and Blackstone have pulled back on their promises to fund big catalog buys, still not spending the $3 billion they collectively pledged in October 2021, in large part because the rising rates made it harder to justify loading up the assets with the amount of debt they had planned to use.
The firms had planned not to provide cash, but to finance the deals with debt, a frequent strategy in the private equity world.
Leave a Reply