Create Music Group announced on October 25, 2023, that it has raised a substantial $450 million through a combination of equity investments and debt financing. This funding values the rapidly expanding independent music company at $2.2 billion, a significant increase from its valuation of $1 billion less than two years ago. Founded in 2015 and based in Los Angeles, Create Music Group has actively invested over $500 million in the past year alone, focusing on acquisitions, advances, and various growth initiatives.
One of the notable recent investments includes $300 million directed towards the management buy-out of Nettwerk Music Group. Co-founder and CEO Jonathan Strauss expressed that this new influx of capital will enable Create to support “visionary entrepreneurs” who are adapting to the evolving music landscape and the increasing demand for innovative media.
“This capital will not only accelerate our roadmap, expanding our footprint in media, IP, and technology, but also empower our partners to build generational businesses that redefine culture and value creation across the global entertainment ecosystem,” Strauss stated.
The latest funding round has attracted institutional investors such as Ares Management and 2 Mile, who join existing minority stakeholder Flexpoint Ford. Flexpoint Ford previously invested $165 million in mid-2024 during a round that valued Create at $1 billion. Despite the influx of new investors, Create’s founders remain the majority owners of the company.
Create Music Group operates several notable entities, including the Gen Z-focused digital entertainment and marketing agency Flighthouse and the independent music distribution platform Label Engine. Additionally, the company is associated with electronic and dance music labels such as Monstercat, !K7 Music, Cr2 Records, and Broke Records.
According to Will Smith, Create’s chief financial officer, the music industry is experiencing unprecedented growth due to new consumption channels and innovative creation methods. He remarked, “The music industry is as dynamic as it has ever been, creating vast opportunities for agile, digital-first companies to reshape the status quo.” The newly acquired capital will support ongoing acquisitions, strategic investments, technology development, and the company’s global expansion efforts.
The financing was arranged by Truist Securities and Bank of California, serving as joint lead arrangers for this significant funding round. As Create Music Group continues to expand its influence and capabilities, it positions itself as a key player in the evolving landscape of the global music industry.
