Revolutionizing Music IP Management: Tesseract and Hawkeye Forge a New Alliance
Two notable names in the music industry, Tesseract Music and Hawkeye Music Publishing, are making headlines with their recent partnership aimed at the acquisition and effective management of music intellectual properties. This partnership sees a convergence of expertise from distinct sectors of the music and business worlds, promising to enhance the value of artist and songwriter catalogs.
Background of the Partnership Entities
Tesseract Music, known for its affiliation with entities such as Tesseract Icons and Tesseract Collective Inc., was initiated by Richard Seet, an ex-principal at The Carlyle Group, and Charles Riotto, the past president of the Licensing Industry Merchandisers Association (LIMA). Joining them in this venture is Hawkeye Music Publishing, founded by Richard Stumpf, a veteran in the music publishing arena with significant positions at Cherry Lane Music and Imagem Music US, and the entrepreneurial spirit behind Atlas Music.
Strategic Financial and Operational Plans
The collaborators have pooled $50 million in equity capital and are engaging with debt providers to broaden their financial base for future acquisitions. This strategic pool of funds is earmarked for purchasing music copyrights, particularly focusing on the catalogs of prolific artists and songwriters. The partnership is actively engaging with catalog owners to initiate acquisitions, leveraging their combined financial and operational strengths.
Significant to their strategy is the utilization of Name, Image, and Likeness rights (NILs), which Richard Stumpf and Charles Riotto view as a vital component in augmenting the value of the catalogs. Stumpf’s experience is critical here, having previously managed substantial music portfolios and raised significant capital for music investments.
Expertise Driving the Partnership
Highlighting the depth of expertise within the partnership, both Stumpf and Riotto bring a wealth of knowledge from their previous roles. Stumpf’s history with music legends and successful fundraising blends perfectly with Riotto’s insights into merchandising and licensing, which are expected to drive the partnership’s success.
Riotto recently expressed optimism about the partnership’s potential impact on the licensing market, citing the strong interest from licensees eager to tap into the vibrant market of music fanbases.
Advisory and Investment Insights
The endeavor is supported by strategic advice from Clark Miller, a seasoned consultant with a rich history at major publishing houses like EMI Music Publishing, Sony/ATV, and Warner Chappell. The partnership’s credibility is further enhanced by historical investments from heavyweight entities such as United Business Media, Angelo Gordon & Co., and Brookfield.