Rostrum Pacific Gains Financial Backing for Catalog Growth
Rostrum Pacific, the parent organization of the indie label Rostrum Records, has announced a significant financing boost of $150 million to enhance its music catalog. This funding was secured from Crayhill Capital Management, a private credit investment firm based in New York, which manages approximately $2.9 billion in assets.
The capital will play a crucial role in expanding Rostrum’s catalog acquisition strategy, enabling the company to pursue opportunities of varying sizes while integrating them into its established ecosystem. This move underscores Rostrum’s commitment to becoming a leading force in the independent music sector.
Under the leadership of CEO Benjy Grinberg, Rostrum has consolidated its various businesses—including Rostrum Records, Fat Beats, Cantora Records, and the digital distribution platform SpaceHeater—under the Rostrum Pacific umbrella in 2023. This consolidation reflects a strategic approach to streamline operations and enhance the overall growth potential of the organization.
In addition to its catalog acquisition ambitions, Rostrum Pacific has also launched SpaceHeater, a music distribution and analytics platform designed to provide artists with AI-powered song attribution technology. This platform is aimed at offering unparalleled transparency and accuracy in tracking music usage, particularly in relation to AI-generated content, which is increasingly relevant in today’s industry landscape.
Previously, Rostrum’s catalog was distributed through ADA, but it is now fully handled by SpaceHeater. This transition allows the company to take greater control over its distribution and analytics processes.
Scott Margolin, Chief Financial Officer of Rostrum Pacific, expressed optimism regarding the funding, stating that it reflects confidence in their value-creation strategy. He emphasized a focus on catalog growth, whether through newly acquired assets or the extensive catalog they have been building for over two decades. “With this backing, we’re expanding our reach and deepening our commitment to ensure that music under our care gets heard,” Margolin added.
Jihane Hassad, Director of the TMT Investment Group at Crayhill, commented on Rostrum’s compelling in-house model for value creation and strategic growth. She noted that Crayhill is well-positioned to offer tailored capital solutions that enable Rostrum to pursue various catalog opportunities and enhance its fully independent ecosystem.
The music industry continues to evolve, and investments like this are indicative of a broader trend where companies seek innovative ways to manage and grow their catalogs. With Crayhill’s backing, Rostrum Pacific is poised to make substantial advancements in the independent music space, further solidifying its position within the industry.
For more information on Crayhill Capital, you can visit their website.
Rostrum’s efforts in catalog acquisition align with the ongoing shifts within the music industry, as companies adapt to new technologies and market demands.