Founded in 2006, London-based Cutting Edge has been a prominent\u00a0buyer\u00a0of film and TV music rights over the past few years.<\/p>\n
In 2022, it\u00a0partnered with<\/a>\u00a0affiliates of London-based Blantyre Capital in a deal that secured\u00a0$125 million<\/strong>\u00a0for acquisitions of music publishing rights from composers who write music for film and TV.<\/p>\n In February last year, Cutting Edge secured<\/a>\u00a0another\u00a0$100 million<\/strong>\u00a0from banks led by Nashville-based Pinnacle Financial Partners.<\/p>\n We’ve written about Toronto-based Northleaf Capital Partners previously, for example in 2021, when Spirit Music Group owner Lyric Capital Group struck a $500 million strategic alliance<\/a> with Northleaf.<\/p>\n Since that deal, Northleaf has used Spirit Music Group\u2019s music assets to support the raise<\/a>\u00a0of a $303.8 million bond offering.<\/p>\n Also, in February, music financing platform Duetti secured<\/a> a $75 million<\/strong> credit facility\u00a0from\u00a0Northleaf Capital Partners.<\/strong><\/p>\n In a separate announcement<\/span><\/a> on Monday, Northleaf Capital Partners revealed that it served as the lead arranger of a USD $100 million<\/b> asset-backed second lien credit facility to Cutting Edge Group. In other words, a $100 million tranche of the total of $500 million secured across the syndicate.<\/p>\n \u201cNorthleaf\u2019s investment in Cutting Edge is a great fit for our asset-based specialty finance strategy which seeks to provide our investors with diversified and low correlation exposure,\u201d said David Ross, Managing Director & Head of Private Credit at Northleaf. \u201cThis investment represents an attractive addition to our investors\u2019 portfolios.\u201d<\/p>\n CEG’s portfolio includes more than 2,000 titles across soundtrack albums, publishing assets and royalty income streams.<\/p>\n The company’s portfolio comprises music that has featured in film, TV, theatre productions and video games including John Wick, Elf, Star Trek: Discovery, The Jungle Book, The Office, South Park, NCIS: Los Angeles, The Morning Show, Stranger Things, The Crown, Suits, The Walking Dead, Bridgerton, Ted Lasso, Glee, Aquaman, Drive, Matilda: The Musical, Cyberpunk 2077 and Assassin\u2019s Creed Valhalla.<\/p>\n In 2019, CEG expanded into what it called “the rapidly growing category of wellness music”, with a focus on the acquisition of music rights that it said “generate steady, recurring income streams from recordings and compositions used to improve health and wellness outcomes such as sleep, focus, and memory”.<\/p>\n Since then, it says, it has “assembled a significant portfolio featuring over 75 active songwriters and artists generating “several billion streams”, including the award-winning Liquid Mind, 2002, Bernward Koch and Peter Kater”.<\/p>\n CEG noted on Monday that “wellness music is quickly becoming a prominent category on DSPs such as Spotify and Amazon Music”.<\/p>\n The company added that it “has identified a range of off-platform opportunities to actively maximize the potential of its catalog”.<\/p>\n \u201cThrough our early conviction in this very specific area of the market, Cutting Edge has become a world leading music partner to the film and tv industries.”<\/p>\n Philip Moross, Cutting Edge Group<\/span><\/p><\/blockquote>\n Philip Moross, CEO of Cutting Edge Group, said: \u201cThrough our early conviction in this very specific area of the market, Cutting Edge has become a world leading music partner to the film and tv industries.<\/p>\n “During that time, the structural trends driving our industries have accelerated exponentially, delivering a proliferation of digital platforms and content, matched by an increase in demand for media music usage.<\/p>\n “Prior to the pandemic, we identified a similar opportunity in the global wellness market, which is now projected to grow at 10% per annum to a US$7 trillion market by 2025. This refinancing will enable us to execute our growth strategy to take full advantage of these trends in our usual disciplined way.\u201d<\/p>\n \u201cWorking with our new financial partners, we\u2019re pleased now to be able to move on our identified pipeline, expanding our portfolio and continuing to support this area of the industry.\u201d<\/p>\n Tim Hegarty, Cutting Edge<\/span><\/p><\/blockquote>\n Tim Hegarty, Cutting Edge Group\u2019s Head of M&A and Corporate Strategy, added: \u201cWorking with our new financial partners, we\u2019re pleased now to be able to move on our identified pipeline, expanding our portfolio and continuing to support this area of the industry.\u201d<\/p>\n \u201cCutting Edge Group has an established track record in royalties and licensing and amassed an attractive portfolio of musical scores and song titles since its inception.”<\/p>\n CJ Wei, Northleaf<\/span><\/p><\/blockquote>\n CJ Wei, Director, Private Credit at Northleaf, said: \u201cCutting Edge Group has an established track record in royalties and licensing and amassed an attractive portfolio of musical scores and song titles since its inception.<\/p>\n “We are thrilled to bring our expertise to the table and partner with them to support the company\u2019s strategic growth at a time when there is strong demand worldwide for streamed music content.\u201d<\/p>\n \u201cFifth Third is honored to have the opportunity to work with Cutting Edge and Philip Moross.”<\/p>\n Jeff Bazoian, Fifth Third<\/span><\/p><\/blockquote>\n Jeff Bazoian, Head of Media & Entertainment Corporate and Investment Banking at Fifth Third, said: \u201cFifth Third is honored to have the opportunity to work with Cutting Edge and Philip Moross.<\/p>\n “It is always enjoyable to partner with long-term relationship clients. We are also thankful for our financing partners including Pinnacle, Regions and MUFG. We are looking forward to being a part of the next step in Cutting Edge\u2019s evolution.\u201d<\/p>\n In May 2023, Cutting Edge stepped into the world of pop music, striking a deal<\/a> with prominent songwriter and producer Jamie Hartman, who\u2019s written or co-written numerous hits for artists such as Lewis Capaldi, Celeste, Calvin Harris, Rag\u2019n\u2019Bone Man and the Backstreet Boys, among many others.<\/p>\n![](\"https:\/\/www.musicbusinessworldwide.com\/files\/2024\/04\/Screenshot-2024-04-15-at-12.20.18-80x51.jpg\")
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