Tesseract Music and Hawkeye Join Forces to Acquire Catalogs
Tesseract Music and Hawkeye Music Publishing have announced a strategic partnership aimed at acquiring and managing music-related intellectual property rights, with a primary focus on artist and songwriter catalog acquisitions. This collaboration marks a significant move in the music industry, as the two companies combine their expertise to enhance the value of music copyrights.
Tesseract Music, founded by entrepreneur Richard Seet and Charles Riotto, is an intellectual property management firm that boasts affiliations with Tesseract Icons and Tesseract Collective Inc. Seet, a former principal with The Carlyle Group, and Riotto, a former president of the Licensing Industry Merchandisers Association (LIMA), bring substantial experience to the table. Meanwhile, Hawkeye Music Publishing, established by Richard Stumpf, has deep roots in the music industry, having previously held senior positions at various prominent music companies.
Investment and Goals of the Partnership
According to the announcement, the newly formed partnership operates under the name Tesseract Music and has access to $50 million in equity capital. The companies are also exploring additional funding through debt providers. Their immediate goal involves engaging in discussions with music catalog owners to acquire copyright libraries, further solidifying their presence in the market.
Seet expressed confidence in the partnership’s potential, stating, “Through our partnership, we believe that we can acquire music catalogs successfully and increase their royalty payouts.” He highlighted the complementary expertise of Stumpf and Riotto as a key factor in benefiting their artist collaborators. This sentiment reflects their optimism about attracting investor interest, even though specific investors have not been disclosed in the announcement.
Stumpf emphasized the importance of Riotto’s knowledge of merchandising licensing, stating that it will support their plans to maximize the value of Name, Image, and Likeness (NIL) rights. Riotto added, “Licensees are keen on brands with passionate followers, and music artists are often defined by the fervor of their fans.” This insight points to the potential for increased revenue opportunities through the partnership’s initiatives.
Expertise and Track Record
Stumpf’s impressive background includes collaboration with notable artists such as Van Halen, Quincy Jones, and John Legend. He has successfully raised over $58 million in private investments from family offices and venture capital firms. His recent work with music investment companies, including Round Hill Music Partners and Harbour View Equity Partners, further demonstrates his commitment to the industry.
The announcement also noted that Tesseract was advised by Clark Miller, who has held executive positions at EMI Music Publishing, Sony/ATV, and Warner Chappell. His consultancy, Clark Miller Consulting LLC, brings additional expertise to the partnership.
As Tesseract Music and Hawkeye Music Publishing embark on this venture, the music industry will be closely watching how their strategic partnership unfolds and impacts the landscape of music catalog acquisitions. The combination of financial backing, industry expertise, and a focus on maximizing value positions them to make a significant mark in the evolving music market.
