The Circuit Group, which owns management firms Ayita and Seven20, has announced the launch of a new nine-figure investment fund focused on the acquisition of music assets and other cultural IP.
Dubbed Circuit Capital, the new fund is backed by $500 million from Los Angeles-based Create Music Group (CMG), which was valued last year at $1 billion following a $165 million investment round.
The new fund aims to bring together Circuit Group’s expertise in electronic music with CMG’s financial resources, technology and infrastructure.
The fund plans to invest in catalogs, record labels, and “other music-driven ventures with a mission to build long-term sustainable value while keeping artistry and community at the forefront,” Circuit Group said in a statement Tuesday (November 18).
Additionally, Circuit Capital will provide financial support for future projects by artists managed by The Circuit Group’s companies. This will include back catalog investments and futures funding deals, giving creators “the resources to invest in their own music and artistic vision,” The Circuit Group said.
“Our mission is to put culture at the center of everything we do. Too often, the people buying into music don’t understand the world it comes from,” The Circuit Group Co-Founder Harvey Tadman said.
“We’ve built our careers inside this culture. Circuit Capital is our way of ensuring that when artists decide to sell or scale, they can do it with people who speak the same language and share the same values. We couldn’t imagine a better partner than Create Music Group.”
“Circuit Capital is our way of ensuring that when artists decide to sell or scale, they can do it with people who speak the same language and share the same values.”
Harvey Tadman
CMG CFO William Smith said the company was “impressed” by The Circuit Group’s “relentless focus as managers on partnering with their clients to build assets with substantial, enduring value, as exemplified by the recent deadmau5 transaction.”
He added CMG is “pleased to be backing Circuit’s strategy of investing into the same music catalogs and businesses that they’re helping to grow – in other words, ‘putting their money where their mouths are’ – by providing them with this fund.”
CMG Co-Founder and CEO Jonathan Strauss added: “Our partnership with The Circuit Group represents Create’s continued mission in building the leading technology, infrastructure, and capital platform for artists and entrepreneurs.
“Circuit has evolved into one of the most respected and trusted management teams in the dance space, with a deep understanding of what artists need to grow, innovate, and create long-term value. Together with Circuit, we’re aligning resources, expertise, and vision to empower music entrepreneurs to build enduring, global businesses.”
“Together with Circuit, we’re aligning resources, expertise, and vision to empower music entrepreneurs to build enduring, global businesses.”
Jonathan Strauss, Create Music Group
The partnership comes at the tail end of a busy year for Create Music Group, which included a $55 million deal for the catalogs of legendary DJ deadmau5 and his Mau5trap Records. Deadmau5’s manager, Dean Wilson, is CEO of The Circuit Group and a co-founder of Circuit Group’s Seven20.
Also this year, CMG acquired indie electronic label Monstercat, as well as Berlin-headquartered indie music company !K7. It formed joint ventures with Ty Dolla $ign and Shawn Barron’s EZMNY Records and Star Trak Entertainment (launched in 2001 by Rob Walker and producer duo Pharrell Williams and Chad Hugo of The Neptunes), and expanded its JV with Pack Records of New York and New Orleans (while also acquiring its catalog).
The Circuit Group has also been busy of late, launching a label services division last year, as well as a music publishing division in partnership with Kobalt.Music Business Worldwide
