Overview of the Acquisition
A group of investors led by Blackstone has acquired a majority stake in Citrin Cooperman, a prominent accounting firm known for its expertise in music catalog valuations. This deal values Citrin Cooperman at approximately $2 billion and involves the purchase of New Mountain Capital’s stake in the firm.
Citrin Cooperman’s Role in the Music Industry
Citrin Cooperman has emerged as a leading expert in the music industry, particularly in the valuation of musical intellectual property (IP). The firm’s Music Economics and Valuation Services practice, co-led by Nari Matsuura and Barry Massarsky, has conducted around 750 catalog valuations worth over $15.5 billion between 2021 and 2022. Their clients include major players like Hipgnosis Songs Fund, Primary Wave, and Reservoir Media.
Broader Services Offered
Founded in 1979, Citrin Cooperman serves more than 15,000 clients globally, providing a wide range of tax advisory and accounting services beyond music catalog valuations.
Recent Controversies
In late 2023, Citrin Cooperman faced controversy related to its client, Hipgnosis Songs Fund, which canceled a planned quarterly dividend payment. This decision was attributed to Citrin Cooperman’s reduced expectations regarding retroactive payments from the Copyright Royalty Board, leading to disputes among catalog owners about the validity of the claims.
Future Growth and Investment
Alan Badey, CEO of Citrin Cooperman, expressed excitement about the partnership with Blackstone, emphasizing the potential for expanded service offerings and technological investments. Blackstone’s investment is expected to enhance Citrin Cooperman’s ability to deliver exceptional client experiences and maintain its commitment to excellence.
Advisors Involved in the Transaction
The acquisition involved several financial and legal advisors. Deutsche Bank Securities Inc. acted as the financial adviser to Blackstone, while Guggenheim Securities, LLC served as the lead financial advisor to New Mountain and Citrin Cooperman. Multiple law firms provided legal counsel to both parties throughout the transaction.