Music superstar The Weeknd is poised to make financial history as he initiates an ambitious plan to secure approximately $1 billion in financing backed by his extensive music catalog. The proposed structure, which would be among the largest deals in music rights history, includes $500 million in senior debt, $250 million in junior debt, and $250 million in equity, creating a balanced approach to financing that leverages his considerable artistic assets.
The Weeknd’s billion-dollar play leverages his musical empire through a sophisticated three-tier financing structure unprecedented in the industry.
New York-based Lyric Capital Group is leading the discussions, bringing their expertise in managing notable music royalty funds to the negotiation table. The artist, born Abel Makkonen Tesfaye, recently announced plans to retire his stage name while continuing his music career. The Weeknd has also reached out to other potential investors, including notable firms like Apollo Global Management and Carlyle Group, both of which have shown interest in the music rights market.
As collateral for this massive financial undertaking, the artist would pledge his stake in publishing rights and master recordings, including hits like “Blinding Lights.” The deal arrives amid a flourishing market for music rights, where other prominent artists have pursued similar strategies. Justin Bieber and John Legend have previously used their catalogs to secure financing, though The Weeknd’s proposal exceeds these in scale and ambition.
With over 110 million monthly Spotify listeners, The Weeknd’s global reach makes his catalog particularly attractive to investors seeking stable, long-term returns. Currently, Chord Music Partners owns a 50% stake in The Weeknd’s music publishing rights as part of a consortium with Universal Music Group and Dundee Partners. These rights are typically managed through Performance Rights Organizations that collect and distribute royalties whenever his music is publicly performed. This financing approach represents a sophisticated alternative to traditional sync deals that many artists rely on for substantial income from film, television, and video game placements. The financial leverage gained through this arrangement could greatly expand The Weeknd’s empire beyond music, potentially funding new ventures while maintaining control of his artistic output.
However, the deal is not without risks, as its success remains contingent on ongoing negotiations and market conditions that could shift before finalization. If successful, this transaction could position The Weeknd as a major player in music finance and influence future deals in the industry.
The structure—balancing debt and equity—reflects a sophisticated approach to financial management rarely seen among recording artists, potentially establishing a new paradigm for how musicians can capitalize on their intellectual property while continuing to build their creative legacies.
