Sherrese Clarke Soares on buying music rights – and expanding Harbourview's vision
Aug 20, 2024
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Sherrese Clarke Soares, founder and CEO of Harbourview Equity Partners, shares insights on her company’s impressive music assets acquisitions, which include major stars like Wiz Khalifa and Lady A. She discusses the shifting landscape of music investments, emphasizing the role of data analytics and the challenges posed by rising interest rates. Soares also elaborates on Harbourview's expansion into film and sports, the importance of engaging with artists, and how an inclusive, pluralistic approach could shape the future of the industry.
Harbourview Equity Partners, founded in 2021, rapidly acquired premium music assets and strategically diversified into film and television investments.
Sherrese Clarke Soares emphasized the importance of data-driven strategies and audience insights in navigating market fluctuations and maximizing investment returns.
Deep dives
Harbour View's Rapid Growth and Diverse Portfolio
Harbour View has quickly established itself in the music and entertainment industry since its launch in 2021, acquiring a diverse array of premium recorded music and publishing assets from various iconic artists such as Wiz Khalifa, Nelly, and Christine McVie. The company has amassed approximately 75 to 80 catalogs, with total assets under management valued at around $1.6 billion. The acquisitions reflect a strategic focus on creating a portfolio that appeals to a global audience across multiple genres and periods, utilizing data analytics to identify growth opportunities. Cherise Clark-Sores likens this approach to Netflix, emphasizing the value of visual diversity within their catalog to attract varied audiences and ensure relevance in a competitive marketplace.
Differentiation Through an Expansive Investment Strategy
Harbour View stands out among competitors by focusing not only on music assets but also on a broader entertainment, media, and sports investment strategy. This integrated approach fosters a collaborative ecosystem that allows for more innovative partnerships and diverse transaction structures, enhancing growth potential for both artists and investors. The firm aims to build strong relationships within the creative community and to support artists through more than just catalog acquisitions, offering avenues for content creation and future earnings opportunities. This focus on building an investment firm that embraces collaboration and diversity is seen as a crucial differentiator in a tightening acquisition landscape.
Navigating Interest Rates and Market Trends in Music Investments
Recent fluctuations in interest rates have led to a slowdown in the music acquisition market, yet Harbour View remains optimistic about its investment prospects. Cherise Clark-Sores highlights that despite rising rates, the firm has found quality investment opportunities and expects a potential easing of interest rates to positively impact music asset valuations in the near future. The approach taken by Harbour View is underpinned by data-driven strategies and a focus on global audience engagement, minimizing the impact of economic volatility on asset performance. This resilient mindset positions Harbour View favorably for continued growth, even amid broader market uncertainties.
Expanding Beyond Music with a Holistic Approach to Content
Cherise Clark-Sores discusses Harbour View's recent investment in filmmaking, highlighting the success of the movie 'The Long Game,' which resonated with the Latinx audience. This venture demonstrates Harbour View's commitment to diversifying its portfolio beyond music by creating high-quality content that engages specific cultural demographics. The company aims to leverage insights from its music catalog investment data to identify further opportunities in the film and television sectors. By focusing on quality storytelling and targeted audience experiences, Harbour View seeks to maximize return on investment while expanding its influence across various entertainment verticals.
On the latest Music Business Worldwide Podcast, Tim Ingham, founder of MBW, is joined by the founder and CEO of Harbourview Equity Partners, Sherrese Clarke Soares (pictured).
Since being established in 2021, Harbourview has acquired premium music assets associated with stars such as Wiz Khalifa Nelly, Lady A, Florida Georgia Line and Christine McVie.
One of Harbourview's biggest deals to date was its reported $325 million purchase of Sound House Acquisitions LLC in 2022.
The company has since expanded into other entertainment verticals, investing in assets in film/TV.
Founded with backing from Apollo Global Management, Harbourview has more recently inked a deal to secure $500 million in debt from KKR via a private securitization of its catalog of music royalties.
On this podcast, Ingham asks Soares about Harbourview's ambitions to keep on buying in the music and entertainment space, streaming trends, and much more.
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