Spirit Music’s first catalog — which includes assets tied to Pete Townshend, T. Rex, and Ingrid Michaelson — appears to be on the market. Sources say Northleaf Capital received an unsolicited bid and has hired Brian Richards of Artisan to solicit competing offers. Consequently, the firm may be seeking $500 million or more.
Complex Ownership History
The catalog has a layered history. Mark Fried assembled much of it after founding Spirit Music in 1995. Then Lyric Capital Group, formed by Jon Singer and Ross Cameron, bought Spirit in 2018 and recapitalized the business. Later Northleaf provided funding to Lyric, which shifted ownership stakes. Moreover, Spirit continues to act as the catalog’s operational administrator even though Downtown Music Publishing now handles some back-office functions.
Financial signals explain the renewed interest. In 2019 the catalog reportedly generated about $21 million in gross profit, implying a roughly $280 million valuation at the time. Today it reportedly brings in about $30 million in gross profit, with most revenue from publishing. Therefore, a $500 million asking price would push the valuation multiple considerably higher. Potential buyers will compare that multiple with projected cash flows, streaming trends, and licensing opportunities.
Catalog Diversity & Appeal
Additionally, the catalog’s music mix increases its appeal. It likely includes country hits acquired through Cal IV Entertainment alongside rock and contemporary songwriters. As a result, revenue streams may feel more diversified and resilient. For example, country radio, sync usage, and legacy rock licensing can provide steady income even as streams fluctuate.
Ultimately, the sale decision will hinge on bidder interest and price. If suitors meet Northleaf’s expectations, shareholders may approve a deal. If not, Northleaf and Lyric can retain and further develop the assets. In either case, this episode underscores a broader trend: established music catalogs remain prized, investable assets in today’s market. For buyers, they offer predictable royalties and cultural value; for sellers, they provide an opportunity to realize market-driven returns. Consequently, keep watching catalog M&A — the sector continues to reshape how music is valued and monetized.
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