CHICAGO and LOS
ANGELES, June 25, 2024 /PRNewswire/ -- Create
Music Group, a rapidly growing music and entertainment company,
announced today a $165 million
investment led by private equity investment firm Flexpoint
Ford. Flexpoint seeks to partner with companies that
provide differentiated financial solutions and services to growing
industries and has significant experience in the music space.
The firm's investment is expected to support Create's continued
momentum and its efforts to further improve and augment the
services it offers to its global client-base.
Founded in 2015 by Chief Executive Officer, Jonathan Strauss, Chief Operating Officer,
Alexandre Williams and Chief
Business Development Officer, Wayne
Hampton, Create Music Group is a dynamic, data-driven
music company that leverages technology, an owned audience of more
than 400 million fans, and a valuable catalog of IP,
providing a full range of services to independent artists and
labels, including music distribution, music publishing, owned
marketing channels, content creation support, advertising and
branding, and tailored financial solutions. Create's proprietary
software platform and full suite of professional services gives a
rapidly expanding number of independent artists and labels access
to major-label services at every stage of their growth. Create's
rapid growth has largely been self-funded until now and this is the
first major investment the company has taken on.
"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."
"We believe Jonathan and his team have set a new standard for
the industry, challenging traditional music companies to rethink
their strategies," said Mike
Morris, Managing Director at Flexpoint Ford. "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."
Music industry veteran Charles
Goldstuck also joined the funding round. The Raine
Group acted as financial advisors to Create and Willkie Farr & Gallagher acted as legal
counsel in connection with the transaction. Reed Smith acted as legal counsel to
Flexpoint in connection with the transaction.
About Create Music Group
Established in 2015, Create
Music Group is a rapidly growing music and entertainment company.
The company operates as a record label, distribution company, and
entertainment network which generates over 25 billion music streams
each month on DSP's. Named #2 on the Inc 5000 Fastest Growth
Companies in America in 2020, the company has grown exponentially
by leveraging its owned IP with its media and technology platform.
The company works with superstar artists, major and independent
record labels, and global media brands. It operates a number of
companies including Label Engine, one of the largest independent
music distribution platforms in the world, with over 75,000 artists
and 5,000 label clients; and Flighthouse, a digital entertainment
brand focused on Gen Z, which has more than 300 million
followers across social media. Create Music Group is based in
Hollywood, CA and has more than
400 employees worldwide.
For more information, visit: https://createmusicgroup.com/
About Flexpoint Ford
Flexpoint Ford is a private
equity investment firm that has approximately $8.2 billion of regulatory assets under
management and specializes in privately negotiated investments in
the financial services and healthcare industries. Since the firm's
formation in 2005, Flexpoint Ford has completed investments across
a broad range of investment sizes, structures, and asset classes.
Flexpoint Ford has offices in Chicago,
Illinois, and New York, New
York.
For more information, visit: www.flexpointford.com
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SOURCE Create Music Group