Create Music Group Raises $450m, Now Valued at $2.2b

Jonathan Strauss (Rich Polk)

Create Music Group has raised more than $450m in new equity and debt capital and is now valued at $2.2b as it continues to expand its footprint.

The company will remain majority-owned by co-founders Jonathan Strauss (CEO), Alexandre Williams (COO) and Wayne Hampton (CBDO), with Ares Management, 2 Mile and Flexpoint Ford all holding minority stakes.

Truist Securities and Banc of California served as joint lead arrangers amid expanded bank group support for the financing round.

Create recently invested $300m in Nettwerk Music Group, allowing the latter to up its ownership stake while also retaining its identity and independence in the marketplace.

Create also owns record labels broke., Monstercat, !K7 Music and Cr2 Records, plus Deadmau5’s Mau5trap imprint.

“At a time when the future of media, technology and creative ownership is being rewritten, we’ve become the definitive platform for the music and media industries’ most visionary entrepreneurs,” said Strauss. “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 the culture and value creation across the global entertainment ecosystem.”

“The music industry is as dynamic as it has ever been, with rapid growth in new consumption channels and means of creation, which is creating vast opportunities for agile, digital-first companies to reshape the status quo,” seconded CFO Will Smith. “In that context, this fundraise is an exciting milestone for Create and the product of a lot of hard work from our entire team over many years.”