Deal Includes Singer/Songwriter’s Work For Disney Film Franchises Such As Toy Story And Cars

Litmus Music, a music rights business backed by Carlyle’s (NASDAQ: CG) Global Credit business, has acquired Randy Newman’s share of his recorded music and publishing, encompassing the scores to timeless and beloved Disney film franchises such as Toy Story, Cars, Monsters Inc., and The Princess and the Frog. The deal also includes Newman’s hits from the 1970s-1980s such as “I Love L.A.,” “Mama Told Me Not To Come,” “Feels Like Home,” “You Can Leave Your Hat On,” “Short People,” “Baltimore,” and “It’s A Jungle Out There”

The catalog includes Toy Story’s “You’ve Got A Friend In Me,” which has become more than just a soundtrack to a beloved film; it has evolved into a universal symbol of friendship solidifying its place in contemporary culture.

Following high-profile deals with Katy Perry, benny blanco, and Keith Urban, this partnership with Newman further solidifies Litmus’s commitment to preserving and promoting iconic catalogs that resonate across generations. Having operated at the highest levels of the music industry, Litmus’ founding members have collectively fostered deep connections to record labels, distributors, artist managers, and the artists themselves, with a mission to create value for artists and investors through the thoughtful management of music.

“Randy Newman is a unique and brilliant songwriter, composer, and performer whose body of work has proven him to be an artist for the ages. There is absolutely no one like him, and his influence on the music world cannot be overstated. We couldn’t be more proud and excited to acquire Randy’s catalog of beautiful, witty, and sharply observational songs,” said Dan McCarroll, Co-Founder and Chief Creative Officer of Litmus Music.

“Randy’s music has touched so many generations. His songs continue to transcend time and illuminate films. Dan and I and the entire Litmus team are so grateful Randy has trusted us as his partner to care for these songs and recordings. It is an honor and responsibility we don’t take lightly,” added Hank Forsyth, Co-Founder and Chief Executive Officer of Litmus Music.

“Randy Newman’s music has been a staple of childhood memories and experiences for decades,” said Alex Popov, Head of Private Credit at Carlyle. “Litmus Music continues to partner with the world’s leading artists to promote and drive value for iconic catalogs.”

With songs that run the gamut from heartbreaking to satirical and a host of unforgettable film scores, Randy Newman has used his many talents to create musical masterpieces widely recognized by generations of audiences.

After starting his songwriting career as a teenager, Newman launched into recording as a singer and pianist in 1968 with his self-titled album Randy Newman. Throughout the 1970s, 80s, and 90s he released several acclaimed albums such as: 12 Songs, Sail Away, Good Old Boys, Little

Criminals, Born Again, Trouble in Paradise, Land of Dreams, and Bad Love. Since 2003, he has released three Randy Newman Songbook volumes, the Randy Newman: Live in London CD/DVD, Harps and Angels, and Dark Matter.

In addition to his solo recordings and regular international touring, Newman began composing and scoring for films in the 1980s. The list of movies he has worked on includes The Natural, Awakenings, Ragtime, all four Toy Story pictures, Monsters Inc. and Monsters University, Seabiscuit, James and the Giant Peach, A Bug’s Life, Meyerowitz Stories, and Marriage Story.

Randy Newman’s many honors include seven Grammys, three Emmys, and two Academy Awards, as well as a star on the Hollywood Walk of Fame. He is in both the Songwriters Hall of Fame and the Rock and Roll Hall of Fame and has been awarded an Ivor Novello PRS for Music Special International Award as well as a PEN New England Song Lyrics of Literary Excellence Award.

Carlyle brings to the partnership the ability to structure bespoke financial solutions for partners and artists. Since 2017, Carlyle has deployed more than $14 billion into the sports, media, and entertainment sectors. 

About Litmus Music

Litmus Music is focused on acquiring and managing music rights, including both music publishing and recorded music, across multiple genres, geographies and vintages. With offices in Los Angeles and New York, Litmus was founded in 2022 by Hank Forsyth and Dan McCarroll, along with Carlyle’s Global Credit platform.

Media Contacts

Grandstand Media: Kate Jackson, katej@grandstandhq.com; Jaclyn Ulman, jaclynu@grandstandhq.com

Carlyle: Kristen Ashton, kristen.ashton@carlyle.com 

• EQT Private Equity brings in blue chip investors Alecta, AMF and TIN in a minority sale in Epidemic Sound
• The new partners broaden Epidemic Sound’s investor base and add additional resources to support its long-term growth

• EQT remains as largest owner of Epidemic Sound and continues to back its mission to soundtrack the internet

EQT is pleased to announce that the EQT Mid Market Europe fund (“EQT Private Equity”) brings in Swedish blue chip pension funds Alecta and AMF and fund management company TIN through a minority sale in Epidemic Sound (“Epidemic” or “the Company”), the market leading platform for restriction-free music.

Today’s announcement comes just two weeks after the news that EQT Growth and Blackstone Growth jointly have invested USD 450 million in the Company. The welcoming of AMF, Alecta and TIN now concludes Epidemic Sound’s total funding round of approximately USD 540 million at a USD 1.4 billion valuation.

Epidemic Sound’s mission to soundtrack the internet by providing content creators and online storytellers with restriction-free music is not something that happens overnight, but the Company is taking incremental steps in that direction. Today, Epidemic’s music is played for over one billion hours on average per month on YouTube alone – a 400 percent increase since July 2019. AMF, Alecta and TIN all share Epidemic’s long-term mindset and bringing them in as partners broadens the investor base and adds additional resources to support continuous growth.

After having acquired a 40 percent stake in Epidemic Sound in 2017, EQT Private Equity has over the past years invested heavily in growing the Company’s online reach and distribution capabilities. EQT has also supported the transition of Epidemic’s physical sales operations to a digital and highly scalable sales channels offering. Furthermore, over the past few years, the Company’s organizational backbone has been significantly improved while revenues have increased by more than five times.

Following today’s announcement, EQT Private Equity and a group of minority shareholders are partially selling stakes, but EQT remains as the largest owner in Epidemic Sound as a testimony to its belief for long-term value creation and strong growth potential.

Victor Englesson, Partner and Investment Advisor at EQT Partners, commented, “Epidemic Sound is a Swedish success story and the company is the most recent unicorn coming out of our country. CEO Oscar Höglund and his team have built Epidemic by combining two of Sweden’s most well known export commodities – music and technology, and EQT is proud to continue supporting their global growth journey. We are also excited to welcome blue-chip investors AMF, Alecta and TIN as new partners. In their capacity as managers of Swedish pension capital, they all share our mindset of long-term and responsible ownership.”

Oscar Höglund, Co-founder and CEO of Epidemic Sound, commented, “I’m delighted to welcome our new investors on board to help us accelerate our mission to soundtrack this generation’s greatest achievement: the internet. Together with our investors and our creative communities, we’re excited to continue supercharging two things that have become synonymous with Sweden: music and technology.”

The transaction closed on 22 March 2021.

Contact
EQT Press Office, press@eqtpartners.com, +46 8 506 55 334

About EQT
EQT is a purpose-driven global investment organization with more than EUR 84 billion in raised capital and currently more than EUR 52 billion in assets under management across 17 active funds. EQT funds have portfolio companies in Europe, Asia-Pacific and North America with total sales of more than EUR 27 billion and approximately 159,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.

More info: www.eqtgroup.com
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About Epidemic Sound
Epidemic Sound, the market leading platform for restriction-free music, is headquartered in Stockholm, heard around the globe and on a mission to soundtrack the world.

The company has democratized access to music for storytellers. Its innovative digital rights model paves the way for creators – everyone from YouTubers to small businesses to the world’s largest brands – to use ‘restriction-free music’ to take their content to the next level, whilst simultaneously supporting the musicians it works with both financially and creatively.

The company was co-founded in 2009 and has offices in six major cities across the globe: Stockholm, New York, Los Angeles, Seoul, Hamburg and Amsterdam. Epidemic is backed by EQT, Blackstone Growth, Creandum, Atwater Capital and its Chairperson is Vania Schlogel, Managing Partner & Founder at Atwater Capital.

More info: www.epidemicsound.com