It’s one of many key valuation and advisory gamers in music’s blockbuster M&A market. Now, Citrin Cooperman (CC) has an fascinating new proprietor… and a mammoth price-tag.
A Blackstone-led investor group has majority-acquired New York-headquartered CC, shopping for out the agency’s earlier investor, New Mountain Capital.
The Monetary Instances studies that the deal provides Citrin Cooperman – which claims to be one of many largest skilled companies corporations in the USA – an enterprise worth of over $2 billion.
New Mountain Capital is a well-known identify to MBW readers, after all. It’s the tech-savvy personal fairness firm that acquired a majority-stake in BMI final yr, in a billion-dollar-plus deal.
New Mountain initially acquired its controlling stake in Citrin Cooperman in 2021, giving the latter agency – on the time – an enterprise worth of $500 million.
Citrin Cooperman, based in 1979, supplies tax, advisory, and accounting companies to numerous companies and high-net-worth people.
Within the music business, Citrin is finest often known as the house of professional music rights valuer Barry Massarsky and his staff.
Citrin Cooperman acquired Massarsky’s firm, Massarsky Consulting, in 2022 (the yr after New Mountain acquired its majority-stake in CC). Massarsky consequently grew to become a Accomplice in Citrin Cooperman.
Massarsky Consulting, which valued offers price over $6 billion in 2021, labored on M&A transactions with/for corporations together with Downtown, Reservoir, BMG, SONGS, Sony Music Publishing, Common Music Publishing, and Warner Chappell Music.
Massarsky (after which Citrin) was additionally the long-time, go-to impartial valuer of Hipgnosis Songs Fund, after that agency floated on the London Inventory Change in 2018.
The eagle-eyed amongst you could have already noticed one thing of a tangle on this net.
Funds affiliated with Blackstone (which now owns Citrin Cooperman) acquired Hipgnosis Songs Fund in a take-private deal final summer season price $1.584 billion.
(We will see, however this battle might naturally result in Citrin recusing itself from sure valuation duties for Blackstone-controlled music belongings in future.)
Blackstone’s curiosity within the music enterprise doesn’t finish at Citrin Cooperman and Hipgnosis.
Blackstone acquired SESAC from Rizvi Traverse Administration in 2017 in a deal that valued the latter firm at over $1 billion.
Right now, SESAC Music Group is managed by funds managed by Blackstone’s Core personal fairness unit; Hipgnosis, in contrast, is managed by funds managed by Blackstone’s Tactical Ops unit.
These two models function individually from each other inside Blackstone’s world community.
Commenting on the brand new Blackstone/CC acquisition, Alan Badey, CEO of Citrin Cooperman, stated: “We’re excited to have reached an settlement for Blackstone to put money into Citrin Cooperman as we enter our subsequent chapter of progress.”
Added Badey: “Blackstone will assist us make further investments in expanded service choices and expertise as we ship on our continued dedication to best-in-class agency tradition and offering an distinctive consumer expertise.
“We thank New Mountain for his or her years of partnership in serving to to construct and assist our enterprise.”
Eli Nagler, a Senior Managing Director at Blackstone, and Kelly Wannop, a Managing Director at Blackstone, added: “The Citrin Cooperman companions and workers have finished an distinctive job making the agency a frontrunner by an unwavering dedication to excellence and consumer service.
“We’re excited to put money into the enterprise to assist it proceed to supply the very best high quality choices shifting ahead.”
Andre Moura and Nikhil Devulapalli, Managing Administrators at New Mountain, stated: “We’re pleased with our profitable partnership with Citrin Cooperman, and we thank the administration staff, companions and workers of Citrin Cooperman for all we’ve achieved collectively over the past three years.
“We look ahead to seeing Citrin Cooperman proceed to thrive for the advantage of all its shoppers and stakeholders.”
Deutsche Financial institution Securities Inc. is serving as monetary adviser, and Kirkland & Ellis LLP and Gibson, Dunn & Crutcher LLP are serving as authorized advisers to Blackstone in its CC acquisition.
Guggenheim Securities, LLC is serving as lead monetary advisor to New Mountain and Citrin Cooperman, with Koltin Consulting Group serving as a further monetary adviser to each events.
Simpson Thacher & Bartlett LLP, Zukerman Gore Brandeis & Crossman, LLP, and Hunton Andrews Kurth LLP are serving as authorized advisers to New Mountain and Citrin Cooperman.Music Enterprise Worldwide
