Ben Katovsky, who previously ran the Blackstone-backed music catalog investment firm Recognition Music Group, was appointed CEO of the advance financing platform Pipeline on Thursday, October 15. Pipeline is founded and chaired by music investor Matt Spetzler, a former Francisco Partners private equity executive.
Pipeline launched with $200 million in lending capital to independent music companies for artist finances, using the labels’ digital royalties as collateral. According to Billboard, as more artists sign short-term distribution deals that let them retain ownership and often the majority of the income their music generates, having enough cash on hand to keep rising stars is a persistent problem for independent companies.
Pipeline entered a partnership with Merlin and acquired Clarty Partners, a music valuation firm, earlier this year.
During Katovsky’s time leading Recognition, the company completed a $372 million asset-backed security issuance before selling its catalog to Sony Music Publishing in July. Before Recognition, he spent seven years at BMG, where he rose to chief operating officer.
Spetzler said in a statement that there is “enormous value in music IP” and that too many of the companies that own it have lacked the backing to realize their ambitions.
Katovsky said in a statement that Pipeline is building “a different model for how companies and creators can access capital.”
Source: Billboard
