Providence seeks to exit music market with US$600-million song sale

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Prices for music catalogues have soared to multiples of 20 times their historical earnings, double the 10 times multiple at which they previously traded

Some executives in the industry cautioned that the frenzy had become excessive.

A longtime music executive says: “When interest rates are low, people break out the laughing gas and it gets weird, and that’s always been a fact in the music business.” Unlike in previous eras when private equity groups sought 20 per cent returns on music assets, some of these companies now manage large credit investing businesses and are buying songs as an alternative to corporate bonds.

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