US-based music rights investment firm GoldState Music has announced what it describes in a press release as a “significant investment” and a new partnership with funds managed by private equity Flexpoint Ford Asset Opportunities.
According to the press statement, the investment and partnership will see GoldState “accelerate its strategy of investing in music intellectual property assets, including full catalogs, influential copyrights, master recordings, and publishing rights”.
GoldState was launched in 2022 by music industry veteran Charles Goldstuck, who, the press release notes, brings “decades of music experience to the firm”.
Goldstuck is the Co-Founder and Co-Chairman of Hitco Entertainment. The catalog of Hitco was sold to Concord in September 2022.
An entrepreneur and investor, Goldstuck is also the founder of The Sanctuary at Albany, a recording studio and music academy in the Bahamas.
During his time as a music executive, Goldstuck has worked with artists including Usher, Leona Lewis, Rod Stewart, Foo Fighters, Justin Timberlake, Britney Spears, Annie Lennox, and Maroon 5.
Flexpoint has approximately $7.7 billion of assets under management and specializes in privately negotiated investments in the financial services and healthcare industries.
The capital for the undisclosed investment in GoldState is being provided by Flexpoint Asset Opportunity Fund II.
Reed Smith served as legal counsel to Flexpoint. Artisan One served as financial advisor and Alston & Bird served as legal counsel to GoldState.
As part of the partnership, GoldState will source new catalog acquisitions and manage the licensing, synchronization, and administration for the existing and acquired copyrights.
GoldState says it was formed “to create a diversified portfolio of music copyrights and sound recordings, with a differentiated strategy of acquiring rights from active, well-known artists, writers and producers”.
The company notes that, in its first year of operations, it has “successfully acquired music rights from several artists and songwriters, spanning multiple genres, geographies, and asset types”.
“The capital from Flexpoint will allow us to accelerate our strategy and create a diversified portfolio of music assets across various artists and genres.”
Charles Goldstuck, GoldState
“GoldState aims to provide a home for active music creators looking to monetize their current music assets and focus on continuing their creative endeavors,” said Charles Goldstuck, Founder of GoldState.
“The capital from Flexpoint will allow us to accelerate our strategy and create a diversified portfolio of music assets across various artists and genres.”
“Charles has a strong pedigree within the music industry that enables him and the GoldState team to identify and acquire music rights with attractive performance trajectories.”
Mike Morris, Flexpoint Ford
Mike Morris, Managing Director of Flexpoint Ford added: “Charles has a strong pedigree within the music industry that enables him and the GoldState team to identify and acquire music rights with attractive performance trajectories.
“We continue to see strong secular demand for music underpinned by increased penetration of streaming and expanding avenues for music consumption, and we believe GoldState has the expertise, experience and deep commitment to artists needed to develop a successful and differentiated business in this rapidly evolving space.
“We are thrilled to partner with Charles and the opportunities that lie ahead for GoldState.”Music Business Worldwide
