In a significant move within the music industry, Litmus Music, a venture backed by the Carlyle Group, has acquired the rights to the song catalog of renowned singer-songwriter Randy Newman. This acquisition includes Newman's celebrated work for Disney's 'Toy Story' films, as well as scores from other popular Disney franchises such as 'Cars', 'Monsters, Inc.', and 'The Princess and the Frog'.

The deal grants Litmus Music a share of Newman's recorded music royalties and publishing rights, further expanding their portfolio in the music asset class. This acquisition is part of a broader trend where private equity firms have been investing heavily in music catalogs, a trend that gained momentum during the pandemic when interest rates were low. However, as interest rates rose, the attractiveness of such investments waned. With recent rate cuts by the U.S. Federal Reserve, firms like Carlyle are once again exploring opportunities in the music industry.

Randy Newman, a two-time Academy Award and seven-time Grammy Award winner, is known for his distinctive voice and satirical songwriting. His career spans decades, with contributions to numerous film scores and a rich catalog of solo recordings. Litmus Music's acquisition also includes rights to Newman's solo work from the 1970s and 1980s, featuring hits like "Short People" and "I Love L.A.".

This move follows Litmus Music's previous acquisition of rights to five of Katy Perry's studio albums and Apollo Global Management's $700 million investment in Sony Music Group. The music industry continues to be a lucrative field for investment, offering uncorrelated income streams and a stable market demand.

Newman's work, particularly his association with Disney, adds significant value to Litmus Music's portfolio. As Alex Popov, head of private credit at Carlyle, noted, "With Randy Newman's catalog, there is a significant value that's being created by its affiliation with Disney and some of the storied movies like 'Toy Story'. This is the type of asset that we gravitate to."

Randy Newman's influence in the music industry is profound, with a career that has seen him inducted into the Songwriters Hall of Fame and the Rock and Roll Hall of Fame. His work continues to resonate with audiences, making this acquisition a strategic move for Litmus Music and Carlyle Group.