Create Music Group announced it has successfully raised $450 million through a combination of equity investments and debt financing. This funding elevates the valuation of the rapidly expanding independent music company to $2.2 billion, a significant increase from its previous valuation of $1 billion less than two years ago.
Founded in 2015 and headquartered in Los Angeles, Create Music Group has allocated over $500 million in the past year towards acquisitions, advances, and other initiatives aimed at fostering growth. A notable recent investment includes $300 million directed towards supporting a management buy-out of Nettwerk Music Group.
Jonathan Strauss, co-founder and CEO of Create Music Group, emphasized the company’s commitment to empowering “visionary entrepreneurs” who adapt to evolving musical tastes and preferences in new media. He stated, “This capital will not only accelerate our roadmap, expanding our footprint in media, IP and technology, but also empower our partners to build generational businesses that redefine culture and value creation across the global entertainment ecosystem.”
The latest funding round welcomed institutional investors, including Ares Management and 2 Mile, as minority stakeholders, while the company’s founders continue to hold majority ownership. Flexpoint Ford had previously invested $165 million in mid-2024, during a funding round that originally valued Create Music Group at $1 billion.
Create Music Group operates several platforms and agencies, including Flighthouse, which focuses on digital entertainment and marketing tailored to a Gen Z audience. It also manages independent music distribution through Label Engine and oversees various electronic and dance music labels such as Monstercat, !K7 Music, Cr2 Records, and Broke Records.
The music industry is experiencing rapid transformation, driven by new consumption channels and creative methods, creating substantial opportunities for agile, digital-first companies. Will Smith, Chief Financial Officer of Create Music Group, noted, “The newly raised capital will support continued acquisitions, strategic investments, technology development, and global expansion.”
Truist Securities and Bank of California acted as joint lead arrangers for the financing, further solidifying the financial backing that will support Create Music Group’s ambitious growth plans.
