Goldstate Music, established in 2022 by Charles Goldstuk, has secured 500 million US dollars to expand its music acquisitions.
As announced on Thursday (April 17), the influx of strategic capital involves a “structured capital institution” guided by Northleaf Capital Partners and Ares Management, along with “separately raised levers.” Details of the private transaction remain undisclosed.
The new supporter of Goldstate, Ares Management Corporation, is a major player in the alternative investment sector.
According to the press release, the global Ares Management Corporation platform ended 2024 with 525 billion dollars in assets under management, operating across North America, Europe, the Asia-Pacific region, and the Middle East.
Northleaf Capital Partners, on the other hand, is a global investment firm specializing in private markets with over 28 billion US dollars in private equity, private debt, and infrastructure assets as of today.
Recent Partnerships and Future Strategy
Goldstate’s partnership with Northleaf marks a significant advancement in the music rights industry. This follows their 2021 alliance worth $500 million with Spirit Music Group, owned by Lyric Capital Group.
“Our new relationships with Northleaf and Ares signify the next step in the evolution of our investment strategy in music.”
Charles Goldstok
Charles Goldstok, founder and managing partner of Goldstate, emphasized that these new relationships would enhance their investment approach in the music sector. He stated, “This additional capital will enable us to capitalize on the increasing demand for music and build a diverse portfolio of musical assets spanning various artists and genres.”
Goldstook added, “As leading institutional investors, Northleaf and Ares bring vital experience that will support Goldstate’s ongoing growth and differentiation for our artists, investors, and other stakeholders.”
Expanding Musical Rights Portfolio
Goldstook, an industry veteran with experience at major labels such as Arista Records, Capitol Records, J Records, and RCA, previously held positions like president and chief operating officer at Bertelsmann Music Group and co-chair of HitcoEntertainment, where he launched La Raid in 2018. Hitco was sold Agreement in September 2022.
The recent announcement of a $500 million capital raise comes just months after Goldstate revealed its acquisition of two catalogs from Catchpoint Rights and Amr Songs for approximately 200 million US dollars.
Goldstate also enjoys backing from other notable investors, including Flexpoint Ford, Pinnacle Financial Partners,Regions Bank, and Tavastok Group, according to the company’s website.
Goldstate’s growing portfolio of musical rights includes rights from Alan Walker and other superstars, as noted on its website. It spans a music and entertainment platform, Touchtunes, where Goldstook serves as executive chairman; ASanctuary, a recording studio located in a luxury resort community in Albany, Bahamas, founded by Goldstook; and a distribution, publishing, and data analytics firm in Los Angeles known as Create a Musical Group.
(Goldstate participated in a 165 million dollar financing round to create a music group in June last year, with private investment firm Flexpoint Ford, while the group led by Flexpoint acquired the fifth capital of Create.)
“Northleaf’s investment in Goldstate aligns perfectly with our specialized finance strategy centered on assets, aiming to provide our investors with diversification and low correlation exposure while ensuring robust monetary returns.”
CJ Wei, Northleaf
CJ Wei, the Director of Private Credit at Northleaf, remarked: “Under Charles’s leadership, Goldstate is poised for success with a disciplined music acquisition strategy, and Northleaf is pleased to support the company and its exceptional team.
“Northleaf’s investments in Goldstate are directly aligned with our specialized finance strategy focused on assets, designed to provide our investors with diversified exposure and low correlation risk while ensuring substantial monetary yield.”
“Charles and Goldstate Music bring a bold, visionary approach to investing in music rights, aiming to enhance artists’ capabilities.”
Jeevan Sagoo, Ares Management
Jeevan Sagoo, Managing Director at Ares Management, added: “Goldstate’s approach to music rights investment is bold and forward-thinking, enhancing artists’ capabilities. We are excited to collaborate with them and leverage Ares’ extensive sector and investment expertise as they advance their long-term growth strategy and create value.”
Goldstate’s 500 million dollars raise marks the latest major show of confidence in the private equity landscape.
Just last month, Pophouse Entertainment, the Swedish music investment company co-founded by ABBA’s Björn Ulvaeus, announced it raised over 1.2 billion euros (1.3 billion US dollars) for its debut fund.
Lucas focuses on the interaction between music and society. He specializes in how music influences and reflects cultures, analyzing the role of sound in social, political, and cultural events around the world.
