M&G backs Seeker Music with $267m securitisation deal

M&G Investments has arranged a $267m (£199m) asset-backed securitisation financing deal for music publishing and record company Seeker Music.

The £375.9bn asset manager said the arrangement, which is also backed by M&G’s Life business, will provide Seeker with funding to accelerate its growth plans and expand its music catalogue, while offering M&G clients portfolio diversification and uncorrelated returns.

Seeker’s catalogue is valued at more than $400m and includes over 19,000 copyrights and master recordings spanning artists from Joan Jett and Christopher Cross to Lewis Capaldi, Justin Bieber and Miley Cyrus.

The arrangement is backed by M&G’s £134bn With-Profits Fund, including the £70bn PruFund, with PruFund investing in real estate, infrastructure and music royalties for over two decades, M&G said.

“Our customers can tap to the beat of the steady, recurring income that music royalties provide, while our investment helps Seeker to support more creators and artists,” said Ciaran Mulligan, chief investment officer at M&G Life. “PruFund’s investment in Seeker shows how cultural trends, such as the revival of early hits from prior decades, can support long-term savings and pensions.”

Barclays acted as sole structuring and lead placement agent, with MUFG serving as joint placement agent for the arrangement.

“Together with M&G, we’ve created a home where songs and legacies get the respect they deserve – and this capital empowers us to move even faster,” said Evan Bogart, chief executive of Seeker. “We’re expanding our creative footprint and proving that a creator-led model is the future of music rights management and the standard the modern industry demands.”