Create Music Group has secured a USD $165 million minority investment round led by private equity firm Flexpoint Ford, MBW can reveal.
Unicorn alert! The investment round values Los Angeles-HQ’d Create at $1 billion, a spokesperson confirmed.
Music industry veteran Charles Goldstuck also joined the funding round, which is understood to see the Flexpoint-led group acquire close to a fifth of Create’s equity.
Create says it will use the money to fuel further global expansion and execute an “ambitious acquisition strategy”.
Established in 2015, Create Music Group has more than 400 employees worldwide. It operates as a record label, distribution company, and entertainment network that generates over 25 billion music streams each month on DSPs.
Create’s subsidiaries include the distribution platform Label Engine, which works with over 75,000 artists and 5,000 label clients. Create also owns Flighthouse, a digital entertainment brand focused on Gen Z, which has more than 300 million followers across social media.
Create was co-founded nine years ago by its Chief Executive Officer, Jonathan Strauss, Chief Operating Officer, Alexandre Williams and Chief Business Development Officer, Wayne Hampton.
Flexpoint Ford, with offices in Chicago and New York, currently has approximately $8.2 billion of regulatory assets under management. It specializes in privately negotiated investments in the financial services and healthcare industries.
“Our partnership with Flexpoint marks a significant milestone for our company and their expertise will be instrumental as we continue to scale our operations and find new ways to serve our client’s evolving needs,” commented Jonathan Strauss, CEO of Create Music Group.
“Flexpoint’s investment will also support our ambitious acquisition strategy which will allow us to expand our market presence and create the scale to continue to provide unparalleled services to our clients and partners.”
“Flexpoint’s investment will support our ambitious acquisition strategy which will allow us to expand our market presence and create the scale to continue to provide unparalleled services to our clients and partners.”
Jonathan Strauss, Create Music Group
Mike Morris, Managing Director at Flexpoint Ford, said: “We believe Jonathan and his team have set a new standard for the industry, challenging traditional music companies to rethink their strategies.
“By acting as a media company that offers comprehensive support to artists, including distribution, marketing, financial solutions and audience engagement, Create Music Group has created a blueprint for the future of music.”
Stephane Essama, Principal at Flexpoint Ford added, “We are pleased to have the opportunity to partner with the founders of Create and provide them with the capital that is needed to meet the enormous demand from their clients as the company continues to build a truly differentiated offering for artists and labels in the rapidly evolving music industry.”
The Raine Group acted as financial advisors to Create and Willkie Farr & Gallagher acted as legal counsel in connection with the $165m transaction. Reed Smith acted as legal counsel to Flexpoint.Music Business Worldwide
