Danny Wimmer Presents, a Los Angeles-headquartered music festival promoter, has secured a major investment from The Yucaipa Companies, a private equity firm also based out of Los Angeles.
News of the backing was emailed to Digital Music News earlier today by Danny Wimmer. The transaction’s amount, while not specified, was described as “substantial.” Similarly, the funds’ likely uses were not disclosed, but it was indicated that Danny Wimmer Presents will “further develop opportunities” with the cash, possibly referring to the organization of additional festivals.
Speaking of the deal in a statement, Danny Wimmer CEO Danny Hayes said that his company had “several” interested investors, but that Yucaipa’s understanding and contacts appeared especially capable of bringing about growth and helping to achieve long-term goals. There were no comments from Ronald Burkle or his associates.
However, it was revealed that Danny Wimmer Presents had extended its contract with Front Gate Tickets, one of the leading festival ticketing organizers and distributors.
Danny Wimmer Presents was founded in 2011, by the music industry veteran of the same name (who is still involved with the company, albeit not as CEO). DWP hosts a multitude of well-known festivals, including Sacramento’s Aftershock, North Carolina’s Epicenter, and Florida’s Welcome to Rockville. Last year, DWP festivals attracted approximately 750,000 guests and featured performances from many prominent artists, including the Foo Fighters, Machine Gun Kelly, Slipknot, and Blink-182.
The Yucaipa Companies was founded by Ronald Burkle in 1986 and has since evolved into a multibillion-dollar entity. The brand generally buys and backs grocery stores, department stores, and related assets, though it previously branched out into entertainment with a sizable investment in Relativity Media, a producer and distributor of entertainment content.
Yucaipa has bought into music industry companies besides Danny Wimmer Presents, and it’s unclear at this time how—or whether—these subsidiaries will coordinate with DWP.