KKR has joined forces with global music publisher BMG to acquire major music rights catalogues, in a move that underscores private equity’s growing interest in the booming music investment market, according to sources cited by Reuters.

The partnership will focus on acquiring high-value catalogues as streaming continues to transform the global music industry and boost royalty revenues. BMG, part of Germany’s Bertelsmann Group, said the collaboration will not involve any transfer of shares or the formation of a joint venture.

“BMG and KKR can jointly pursue opportunities for acquisitions of major catalogues of music rights from now on,” said Bertelsmann CEO Thomas Rabe. “Together with KKR, we are ideally positioned to make attractive offers to rights owners.”

The partnership marks a reunion for the two firms, who first worked together in 2008 when KKR helped establish BMG. KKR has also maintained a strong track record in the European media sector, including its role in taking German publisher Axel Springer private.

The announcement follows BMG’s recent acquisition of the back catalogue of Fleetwood Mac co-founder Mick Fleetwood, highlighting the sector’s ongoing momentum as investors compete for music assets with long-term, predictable cash flows.

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