Apollo Global Management has committed $1.25 billion from funds it manages to help BMG and Concord join together, giving Apollo a stake in part of Concord’s old catalog as part of the deal.
The arrangement was announced Thursday (Sept. 17). Apollo has been Concord’s main partner in issuing asset-backed securities, or ABS, since 2022, handling four Concord ABS notes worth more than $4.5 billion combined. Part of the new financing will repay some of Concord’s existing ABS debt.
Apollo’s Role In The Deal
Apollo will take equity in a BMG subsidiary that holds the old Concord ABS and the songs used to back those securities. That means Apollo is now a minority investor in part of Concord’s catalog, though the source does not say exactly what share of the catalog Apollo receives.
Bob Valentine, CEO of BMG and formerly head of Concord, said the combination “marks a defining moment in our company’s evolution.” He added that Apollo’s partnership “further strengthens our financial foundation” and positions BMG “to pursue global long-term growth opportunities.”
The BMG-Concord acquisition closed Sept. 1 after receiving regulatory approval. The combined company now holds more than 4 million works in its catalog.
The Catalog Behind The Deal
BMG represents artists including Jelly Roll and Lainey Wilson. Concord owns songs by Creedence Clearwater Revival and R.E.M., among many others.
The catalog is the real prize here. Asset-backed securities tied to music rights have become a standard way for companies to raise money against the income streams that songs produce, and this deal brings Apollo’s expertise in that field directly into the BMG fold.
“further strengthens our financial foundation”
Who Owns BMG Now
BMG remains privately held. Media giant Bertelsmann holds a 67% stake. The remaining 33% stake is held by affiliates of Great Mountain Partners.
| Stakeholder | Ownership |
|---|---|
| Bertelsmann | 67% |
| Great Mountain Partners affiliates | 33% |
| Apollo | Minority equity in part of Concord’s old catalog |
Apollo’s Track Record With Concord
Apollo has been Concord’s primary partner in issuing asset-backed securities since 2022. The four Concord ABS notes Apollo has handled together total more than $4.5 billion.
The Structure Of Apollo’s Investment
Apollo is not simply lending money to BMG. It is taking equity in a BMG subsidiary that holds the old Concord ABS and the songs used to back those securities.
That is a significant structural difference. A loan has to be repaid. Equity is an ownership stake, and it grows with the value of what it holds.
Apollo is also described as a minority investor in part of Concord’s old catalog, though the source does not specify the size of that stake. What is clear is that Apollo is not buying shares in the parent company itself — it is getting a piece of the catalog assets themselves, wrapped up in a subsidiary structure.
Jamshid Ehsani, an Apollo partner, said Apollo is “pleased to support the transformative combination of BMG and Concord through a tailored, non-dilutive equity investment that strengthens the combined company’s financial positioning.”
The phrase “non-dilutive equity” is worth pausing on. Apollo is not buying new shares in BMG that would spread ownership thinner among existing investors. Instead, it is taking equity in a subsidiary that holds the catalog assets, meaning the overall ownership structure among existing investors stays intact.
The Advisors Behind The Deal
Apollo’s financial adviser was Deutsche Bank. Its legal counsel was Latham & Watkins LLP. BMG received financial advice from Goldman Sachs, with legal counsel from DLA Piper and Davis Polk.
What Comes Next For BMG
Valentine framed the deal as a turning point for BMG, calling it “a defining moment in our company’s evolution.” The financing is designed to smooth the integration of Concord into BMG, and Apollo’s role as a minority investor in part of the catalog gives it a stake in how that integration works.
The combined company holds more than 4 million works in its catalog. That is a large catalog, and it gives BMG a strong base of intellectual property to build from.
The financing also helps reduce debt. With some of Concord’s ABS debt repaid through the new funding, BMG has a cleaner balance sheet to work with.
The Bottom Line On Apollo’s Role
Apollo is not just a lender here. It is a partner with skin in the game, owning part of the catalog through a subsidiary structure and taking equity rather than simply extending credit.
That matters for how the deal gets viewed. A loan can be repaid and forgotten. An equity stake lasts, and it ties Apollo’s interests directly to the performance of the catalog itself.
Apollo has been working with Concord on ABS since 2022, and this financing extends that relationship into the newly combined BMG structure. The catalog that Apollo helped finance through those earlier securities is now part of the equity package Apollo receives.
The deal closes a chapter in Concord’s history and opens a new one for BMG. Apollo’s role in making that transition possible is central to the arrangement.
Where the paper stands
The paper backs the small business against the agency and the giant and is against Apollo’s expanding stake in Concord’s ABS debt, which could raise the cost of entry for smaller competitors. Regulation often protects the biggest players and raises the cost of entry for small ones, and Apollo’s equity stake in the catalog fits that pattern. Apollo has been Concord’s primary ABS partner since 2022, and now it takes equity in the same catalog it has been financing, tying its interest directly to the value of those songs.
The paper accepts oversight where a business directly harms people or the environment, and wants that oversight narrow and aimed at the harm. It is AGAINST broad new rulebooks, agencies widening their own reach, and rules the biggest firms helped write. Apollo’s expanding stake in Concord’s ABS debt looks like a move that raises the cost of entry for smaller competitors, and the paper is against that.
What the reader should watch for is whether Apollo’s growing stake in the catalog comes with conditions that favor its own position over smaller competitors. Apollo has been Concord’s primary ABS partner since 2022, and the deal announced Thursday extends that relationship into the newly combined BMG structure. Apollo’s interest in the catalog is direct, and the paper will watch how that plays out going forward.
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