Litmus Music Sets Sail with $500 Million to Spend on Music Catalogs

Litmus Music fund

Photo Credit: Hank Forsyth and Dan McCarroll, Litmus Music

Music industry veterans Hank Forsyth and Dan McCarroll have come together to launch Litmus Music with the help of Carlyle Global Credit.

With deep roots in the music industry, both artistically and operationally, Litmus’ founding members share a focus on creating value for artists and investors through “thoughtful” music management. Litmus Music will acquire and manage music publishing and recorded music rights with an initial $500 million commitment from Carlyle Global Credit and capital from management. 

“Music is as important in society as it has ever been, and its impact and value are being felt more and more,” says Hank Forsyth, Co-Founder and Chief Executive Officer of Litmus. “It is an honor to partner with Dan and form what we have talked about for years — a music business and team built on integrity and trust. These core Litmus values are shared by Carlyle, and we believe they are the best partners to support our team as we start this journey.”

“Music has been the driving force of my life and I have the greatest respect for the writers and artists who make it and the fans who cherish it,” adds Dan McCarroll, Co-Founder and Chief Creative Officer of Litmus.

“It is thrilling to be starting Litmus with the partnership of Hank and Carlyle. Our incredible team is all about collaboration and building a collection of ageless music assets and unforgettable songs that will continue to enrich people’s lives for years to come.”

“Our partnership with Hank and Dan, two highly regarded executives in the music industry, underscores the value we see in music rights, driven by strong tailwinds and the uncorrelated nature of the asset class,” says Matt Settle, Managing Director with Carlyle Global Credit. “Streaming and other new mediums have enabled more ways than ever to consume content, and we believe Litmus has the right mix of skills, experience, and connectivity to develop a successful and differentiated business, and to care for works that people have spent their lifetimes creating.”

Only time will tell what music catalogs Litmus decides to purchase, with plenty from which to choose. While many heavy hitters — Bob Dylan, Bruce Springsteen, Sting — are no longer up for grabs, Pink Floyd’s catalog is still available with an estimated price tag of $500 million. Perhaps the smartest choice for Litmus is to wait and see what smaller catalogs become available in the next wave of availability.