GoldState Music, founded in 2022 by Charles Goldstuck, has raised USD $500 million to acquire more music rights.
According to the announcement on Thursday (April 17), the strategic capital raise includes “a structured capital facility” co-led by Northleaf Capital Partners and Ares Management funds, as well as “separately raised leverage”. Additional terms of the private transaction were not disclosed.
According to the press release, Ares Management Corporation’s global platform had over $525 billion of assets under management as of December 31, 2024, with operations across North America, Europe, Asia Pacific, and the Middle East.
Northleaf Capital Partners, meanwhile, is a global private markets investment firm with more than USD $28 billion in private equity, private credit and infrastructure commitments raised to date.
Northleaf’s partnership with GoldState marks its latest significant move in the world of music rights, after the Toronto-headquartered firm struck a $500 million alliance with Spirit Music Group owner Lyric Capital Group in 2021.
“Our new relationship with Northleaf and Ares marks the next step in the evolution of our music investing strategy.”
Charles Goldstuck
GoldState’s founder and Managing Partner Charles Goldstuck said on Thursday that his Florida-headquartered company’s “new relationship with Northleaf and Ares marks the next step in the evolution of [the company’s] music investing strategy”.
Added Goldstuck: “This additional capital will enable us to further accelerate our ability to capitalize on increasing demand for music and build a diversified portfolio of music assets across artists and genres.
“As leading institutional investors, Northleaf and Ares bring critical experience that will support GoldState’s continued growth and differentiation to the benefit of our artists, investors and other stakeholders.”
Goldstuck is a music industry veteran who has held positions at major labels, including Arista Records, Capitol Records, J Records, and RCA.
News of GoldState’s $500 million raise arrives just a few months after the company’s reported acquisition of two catalogs from CatchPoint Rights Partners and AMR Songs for about USD $200 million.
GoldState’s financial backing also comes other prominent investors including Flexpoint Ford, Pinnacle Financial Partners, Regions Bank and Tavistock Group, according to the firm’s website.
The company’s music rights portfolio includes rights from Alan Walker, All Time Low, the Dead Kennedys, and other superstars, according to its website.
GoldState’s growth portfolio includes music and entertainment platform TouchTunes, in which Goldstuck serves as executive chairman; TheSanctuary, a recording studio situated within the luxury resort community of Albany in The Bahamas that Goldstuck founded; and Los Angeles-based music distribution, publishing, and data analytics company Create Music Group.
(GoldState joined a $165 million funding round for Create Music Group in June last year, with private equity firm FlexpointFord. The fundraising was understood to have seen the Flexpoint-led group acquire close to a fifth of Create’s equity.)
“Northleaf’s investment in GoldState directly aligns with our asset-based specialty finance strategy, which is designed to provide our investors with diversified and low correlation exposure while delivering strong cash yield.”
CJ Wei, Northleaf
CJ Wei, Managing Director, Private Credit at Northleaf, said: “Led by Charles, GoldState is well-positioned to execute on a disciplined music acquisition strategy, and Northleaf is pleased to support the Company and its exceptional team.
“Northleaf’s investment in GoldState directly aligns with our asset-based specialty finance strategy, which is designed to provide our investors with diversified and low correlation exposure while delivering strong cash yield.”
“Charles and GoldState Music bring a bold, visionary approach to music rights investment that seeks to empower artists.”
Jeevan Sagoo, Ares Management
Jeevan Sagoo, Managing Director at Ares Management, added: “Charles and GoldState Music bring a bold, visionary approach to music rights investment that seeks to empower artists.
“We are excited to collaborate with them and provide Ares’ deep sector and investment experience as they advance their long-term growth and value creation strategy.”
GoldState’s $500 million raise marks the private equity world’s latest big vote of confidence in music rights.
Just last month, Pophouse Entertainment, the Sweden-based music investment firm co-founded by ABBA’s Björn Ulvaeus, announced that it had raised over EUR €1.2 billion (USD $1.3 billion) for its debut fund.Music Business Worldwide
