GIC, Singapore’s sovereign wealth fund, and Sony Music Group ( SMG ) have announced a strategic global partnership to invest in music rights, signalling a new wave of institutional capital entering the high-growth music asset class.

The tie-up will focus on acquiring catalogues and rights across a diverse range of genres, geographies, and income streams, reflecting the evolving appetite for resilient, cash-generating assets with long-term potential.

The new partnership will operate independently of Sony Music Group’s core label and publishing businesses, ensuring commercial flexibility and alignment with both parties’ long-term investment goals.

It aims to capitalize on strong structural tailwinds in the music sector, including the rise of global streaming, recurring subscription models, and growing consumption in emerging markets.

“Music is an increasingly important asset class that sits at the intersection of culture and commerce,” said Stephen Bryan, EVP of digital strategy and investments at Sony Music. “With GIC as our partner, we are poised to scale our efforts to identify and invest in high-quality music rights globally.”

This move marks a continuation of Sony Music Group’s push to build its investment footprint in the music rights space, a trend that has gained pace over the past five years. Meanwhile, GIC is deepening its exposure to non-traditional asset classes that offer stable, long-term returns, underpinned by secular consumption trends.

With global recorded music revenues projected to grow at a compound annual rate of 7% through 2030, the rationale for such deals is becoming increasingly compelling.

While financial details of the new tie up remain undisclosed, fundamentally the partnership combines Sony Music’s operational and industry expertise with GIC’s scale, investment discipline and financial heft.