It’s one of the key valuation and advisory players in music’s blockbuster M&A market. Now, Citrin Cooperman (CC) has an interesting new owner… and a mammoth price-tag.
A Blackstone-led investor group has majority-acquired New York-headquartered CC, buying out the firm’s previous investor, New Mountain Capital.
The Financial Times reports that the deal gives Citrin Cooperman – which claims to be one of the largest professional services firms in the United States – an enterprise value of over $2 billion.
New Mountain Capital is a familiar name to MBW readers, of course. It’s the tech-savvy private equity company that acquired a majority-stake in BMI last year, in a billion-dollar-plus deal.
New Mountain originally acquired its controlling stake in Citrin Cooperman in 2021, giving the latter firm – at the time – an enterprise value of $500 million.
Citrin Cooperman, founded in 1979, provides tax, advisory, and accounting services to various businesses and high-net-worth individuals.
In the music industry, Citrin is best known as the home of expert music rights valuer Barry Massarsky and his team.
Citrin Cooperman acquired Massarsky’s company, Massarsky Consulting, in 2022 (the year after New Mountain acquired its majority-stake in CC). Massarsky consequently became a Partner in Citrin Cooperman.
Massarsky Consulting, which valued deals worth over $6 billion in 2021, worked on M&A transactions with/for companies including Downtown, Reservoir, BMG, SONGS, Sony Music Publishing, Universal Music Publishing, and Warner Chappell Music.
Massarsky (and then Citrin) was also the long-time, go-to independent valuer of Hipgnosis Songs Fund, after that firm floated on the London Stock Exchange in 2018.
The eagle-eyed amongst you may have already spotted something of a tangle in this web.
Funds affiliated with Blackstone (which now owns Citrin Cooperman) acquired Hipgnosis Songs Fund in a take-private deal last summer worth $1.584 billion.
(We shall see, but this conflict may naturally lead to Citrin recusing itself from certain valuation duties for Blackstone-controlled music assets in future.)
Blackstone’s interest in the music business doesn’t end at Citrin Cooperman and Hipgnosis.
Blackstone acquired SESAC from Rizvi Traverse Management in 2017 in a deal that valued the latter company at over $1 billion.
Today, SESAC Music Group is controlled by funds managed by Blackstone’s Core private equity unit; Hipgnosis, by contrast, is controlled by funds managed by Blackstone’s Tactical Ops unit.
These two units operate separately from one another within Blackstone’s global network.
Commenting on the new Blackstone/CC acquisition, Alan Badey, CEO of Citrin Cooperman, said: “We are excited to have reached an agreement for Blackstone to invest in Citrin Cooperman as we enter our next chapter of growth.”
Added Badey: “Blackstone will help us make additional investments in expanded service offerings and technology as we deliver on our continued commitment to best-in-class firm culture and providing an exceptional client experience.
“We thank New Mountain for their years of partnership in helping to build and support our business.”
Eli Nagler, a Senior Managing Director at Blackstone, and Kelly Wannop, a Managing Director at Blackstone, added: “The Citrin Cooperman partners and staff have done an exceptional job making the firm a leader through an unwavering commitment to excellence and client service.
“We are excited to invest in the business to help it continue to provide the highest quality offerings moving forward.”
Andre Moura and Nikhil Devulapalli, Managing Directors at New Mountain, said: “We are proud of our successful partnership with Citrin Cooperman, and we thank the management team, partners and staff of Citrin Cooperman for all we have accomplished together over the last three years.
“We look forward to seeing Citrin Cooperman continue to thrive for the benefit of all its clients and stakeholders.”
Deutsche Bank Securities Inc. is serving as financial adviser, and Kirkland & Ellis LLP and Gibson, Dunn & Crutcher LLP are serving as legal advisers to Blackstone in its CC acquisition.
Guggenheim Securities, LLC is serving as lead financial advisor to New Mountain and Citrin Cooperman, with Koltin Consulting Group serving as an additional financial adviser to both parties.
Simpson Thacher & Bartlett LLP, Zukerman Gore Brandeis & Crossman, LLP, and Hunton Andrews Kurth LLP are serving as legal advisers to New Mountain and Citrin Cooperman.Music Business Worldwide