CVC Capital Companions has agreed to accumulate a majority stake in DistroKid, the impartial music distribution platform.
The non-public markets funding agency will make the funding by way of its CVC Capital Companions IX fund, DistroKid confirmed on Monday (July 6).
Perception Companions, a longtime DistroKid backer, will retain a “important minority stake” within the firm, in response to an announcement.
Phil Bauer will proceed to guide DistroKid as President, alongside the corporate’s present management staff.
The transaction is anticipated to shut within the third quarter of 2026, topic to customary closing situations. Phrases weren’t disclosed.
MBW revealed in January that DistroKid was exploring a sale, with a worth of round $2 billion beneath dialogue on the time.
In music circles, CVC is greatest identified for its 2024 funding in Superstruct Leisure, the dwell occasions group it backs alongside KKR.
Superstruct operates greater than 80 festivals throughout Europe and Australia, amongst them Wacken Open Air and Sónar.
CVC‘s wider leisure and sports activities investments have included Stage Leisure, Components One and Spain’s LaLiga.
The non-public markets agency manages roughly €209 billion in property throughout non-public fairness, secondaries, credit score and infrastructure, in response to the agency.
“We’ve been extremely impressed by what Phil and all the DistroKid staff have constructed,” mentioned Sebastian Künne, a Associate at CVC Capital Companions.
“DistroKid has earned the belief of hundreds of thousands of artists by staying targeted on what they want most. We look ahead to partnering with Phil and his staff, drawing on our expertise throughout music, leisure and shopper subscription companies to assist DistroKid assist the subsequent era of artists around the globe.”
“DistroKid has reworked how impartial artists share their music with the world,” mentioned Deven Parekh, Managing Director at Perception Companions.
“We’re happy with our partnership with Phil and the DistroKid staff and are excited to proceed supporting the corporate alongside CVC.”
Based in 2013 by Philip Kaplan, DistroKid has expanded past distribution to supply impartial musicians instruments together with video distribution, on the spot mastering, direct-to-fan experiences and on-demand merchandise.
The New York-based firm claims to deal with 30% to 40% of latest music releases globally, and says its platform is utilized by greater than 2 million artists.
DistroKid expenses artists a flat subscription price and lets them maintain 100% of their royalties.
The corporate was valued at $1.3 billion following an funding from Perception Companions in August 2021.
Perception Companions, which is retaining its minority stake, has continued to broaden throughout the impartial distribution sector.
In January, the agency acquired Berlin-based distributor Zebralution from German gathering society GEMA, as GEMA exited digital distribution.
Kaplan transitioned from DistroKid’s CEO to Chairman in January 2024.
Bauer, beforehand DistroKid’s Chief Working Officer, then took over day-to-day management as President.
Goldman Sachs & Co. LLC and The Raine Group served as monetary advisors to DistroKid. MBW reported the duo had been dealing with its sale course of in January.
In 2025, DistroKid launched Direct, a platform for artists to promote merchandise straight to followers.
The service builds on Bandzoogle, the direct-to-fan firm DistroKid acquired in 2023, and marked its push past audio and video distribution.Music Enterprise Worldwide
