KKR & Co. Inc. is rocking its new $2.8 billion KKR Dislocation Opportunities Fund and other private credit vehicles with a majority stake in the music catalog of Ryan Tedder and his band, OneRepublic.
KKR isn't identifying the other credit vehicles or disclosing the terms of the deal.
The catalog includes nearly 500 songs written, recorded or produced by Mr. Tedder for OneRepublic and other artists, plus songs written with Beyonce, U2, Paul McCartney, Adele, Stevie Wonder, Ed Sheeran, Lady Gaga and Cardi B. Interscope Records, a music label owned by Universal Music Group, will continue to own OneRepublic's master recordings.
In May, KKR closed on $4 billion in capital commitments for the fund and separately managed accounts to invest in opportunities across public and private credit markets and alternative investment asset classes caused by 2020 market volatility. The strategy has an initial 18-month investment period.
KKR has invested in other music businesses, including Gibson Brands and BMG, as well as digital media companies such as ByteDance (TikTok) and Epic Games. KKR executives plan to use this investment experience as well as the firm's other resources to expand the reach of Mr. Tedder and OneRepublic's music.
"Our portfolio of investments has given us a unique perspective on the significant growth opportunities we are seeing in the music industry, particularly in music intellectual property with the proliferation of streaming alternatives and strong demand for content consumption more broadly," said Nat Zilkha, Menlo Park, Calif.-based partner at KKR, in a written statement about the deal.