BlackRock (BLK) Alternative Investors has provided seed capital for a new company that offers financing to music professionals looking to expand their brands and careers, or fund their creative projects.
Whether the artist needs the capital to start a new record label, invest in a music-based tech startup company, launch a clothing line based on the artist's brand, or something else entirely, Alignment Artist Capital will work with eligible music artists to provide this capital.
Formed by private equity investor Howard Lipson and music entrepreneur James Diener, Alignment Artist Capital will build a diversified portfolio of structured investments in targeted artist and artist-related entities that initially will range from $5 million to $20 million per transaction.
“We thought the industry could use a company specifically set up to help the music creators and artists,” said Mr. Diener in a phone interview. “We're here to give opportunities to artists that allow them to take the next steps in their careers.”
BlackRock Alternative Investors has seeded New York-based Alignment with roughly $100 million and has the capacity to provide more if needed.
“It's a very interesting combination of music industry knowledge from James and a traditional underwriting lens from Howie,” said Matthew Botein, the Boston-based managing director, global co-head and chief investment officer of BlackRock Alternative Investors. “I like the marriage of backgrounds that they represent.”
This article originally appeared in the April 20, 2015 print issue as, "BlackRock Alternative in alignment with new music capital company".