Pophouse Entertainment, the Sweden-based music investment firm co-founded by ABBA’s Björn Ulvaeus, has raised over EUR €1.2 billion ($1.3 billion) for its debut fund.
The Stockholm-based company announced Monday (March 31) that Pophouse Fund I raised over €1 billion ($1.1 billion), reaching its hard cap and making it, Pophouse, claimed, “one of the largest first-time private equity funds to be raised in Europe in the last decade”.
Pophouse said it secured an additional €200 million ($216m) through dedicated co-investment vehicles, “providing investors the opportunity to invest alongside the Fund and participate in select transactions”.
The Fund will be used to acquire music catalogs and IP.
Pophouse said it has already deployed about 30% of the fund via partnerships with artists such as American rock band KISS, pop singer Cyndi Lauper, and Swedish electronic dance music artists Avicii and Swedish House Mafia.
The firm said it is pursuing additional partnerships with “some of the world’s most recognizable and influential names in the global music industry.”
Pophouse, founded by ABBA’s Björn Ulvaeus and EQT founder Conni Jonsson, is led by CEO Per Sundinand chaired by Lennart Blecher, EQT’s Head of Real Assets.
Per Sundin, a former Managing Director of Universal Music Sweden and President of Universal Music Nordic Region, is described by Pophouse as “the first label executive to partner with Spotify” and signed Avicii when he was still an unknown artist.
Meanwhile, Pophouse said today that Lennart Blecher’s “experience and strategic insight will be invaluable as Pophouse enters a new phase marked by this successful fundraise”.
Pophouse said it employs what it describes as an “artist-centric” approach to investing by targeting three essential rights in music investment: publishing rights, recording rights, and NIL (name, image, and likeness) rights.
Beyond passive catalog ownership, Pophouse says it focuses on creating value for its artists and investors through the application of acquired IPs. Pophouse launched immersive experiences such as ABBA Voyage, a concert featuring digital avatars of the Swedish pop group, and The Avicii Experience, a tribute to the late Swedish DJ.
“We are reshaping the entertainment industry by applying an active, value-add approach that unlocks future generations for fandom.”
Conni Jonsson, Pophouse
The capital raise comes as investors increasingly see music rights as attractive investments.
Pophouse said it “has defied the challenging environment for private capital raises and attracted a diverse and prestigious global investor base”.
According to Pophouse, this includes “leading pension funds, endowments, high-net-worth individuals, family offices, and sovereign wealth funds, all drawn to Pophouse’s unique, value add artist-focused investment strategy”.
“Facing unprecedented disruption caused by streaming and technology, music intellectual property presents a differentiated, lifetime opportunity for investors,” said Pophouse Co-Founder Conni Jonsson. “We are reshaping the entertainment industry by applying an active, value-add approach that unlocks future generations for fandom.”
“By investing across publishing, recording, and brand rights, Pophouse has created a uniquely attractive prospect not only for investors but also for artists, empowering them to explore and amplify their legacy to new generations of fans.”
Johan Lagerlöf, Pophouse
Johan Lagerlöf, Managing Partner at Pophouse, added: “By investing across publishing, recording, and brand rights, Pophouse has created a uniquely attractive prospect not only for investors but also for artists, empowering them to explore and amplify their legacy to new generations of fans.
“We would like to thank our investors for the trust they have placed in our world-class investment and creative teams, and we look forward to the exciting journey ahead as we continue to partner with more of the world’s preeminent artists.”
“Raising over €1.2bn for our debut fundraising is an extraordinary milestone that firmly establishes Pophouse as a global leader in music investment.”
Natalia Fontecha, Pophouse
Natalia Fontecha, Partner and Head of Capital Raising & Investor Relations, said: “Raising over €1.2bn for our debut fundraising is an extraordinary milestone that firmly establishes Pophouse as a global leader in music investment.
“I couldn’t be prouder of our team’s dedication and diligence, and I extend our heartfelt gratitude to our investors for their trust and partnership.
“As we look ahead, we are committed to driving innovation and breaking creative and technological boundaries, redefining the entertainment landscape in this transformative era for music while delivering attractive uncorrelated returns for our investors.”
The ABBAVoyage concert series, launched in May 2022, showcases digital versions of the iconic Swedish pop group performing seven nights a week in their custom-built 3,000-seat ABBA Arena located in East London.
In 2023, Aniara Ltd., the UK-based holding company for ABBA Voyage, reported a pre-tax profit of GBP £6.07 million ($7.5 million), up from £2.99 million in 2022. Turnover for 2023 rose 6.7% YoY to £103.67 million ($129 million).
ABBA Voyage attracted over 1 million visitors, 20% of whom had traveled from outside of the UK, in its first year. The concert experience was created with Agnetha Fältskog, Björn Ulvaeus, Benny Andersson and Anni-Frid Lyngstad, directed by Baillie Walsh, and produced by Svana Gisla and Ludvig Andersson.
Last year, Pophouse acquired the song catalog, plus name, image and likeness rights of legendary rock band KISS. KISS also partnered with the Swedish company on an avatar concert featuring digital versions of themselves, similar to ABBA Voyage.
