The Weeknd Reportedly Looks to Raise $1 Billion with Music Catalogue

The Weeknd is reportedly looking to raise $1 billion (USD) in financing backed by his music catalogue, including music publishing rights and master recordings.

According to Bloomberg, New York-based private equity firm Lyric Capital Group is in talks with the Canadian singer, born Abel Tesfaye, and they’ve reached out to other investors to secure the funds. As the biggest streaming artist in the world, Tesfaye can leverage his back catalogue — which generates consistent revenue — to investors, as they understand the value his work holds.

The Scarbourgh native would reportedly use his stake in his music publishing rights as collateral, and his share of the master recordings of the songs. No agreement has been reached as discussions are still ongoing, the report said.

With knowledge from sources on the deal, Lyric has presented a structure that includes $500 million of senior debt, $250 million of junior debt and $250 million of equity. If the transaction materializes, The Weeknd will retain control over his intellectual property while unlocking the ability to fund ventures like his production company, Manic Phase.

Lyric owns Spirit Music Group, a music publishing company, which controls publishing catalogues from artists, including country stars Tim McGraw and Jason Aldean, and indie darling Ingrid Michaelson. In 2023, Lyric closed its second music royalty fund with approximately $800 million in total commitments.

The Weeknd’s music publishing is owned by Chord Music Partners — a consortium that includes Universal Music Group and Dundee Partners, the investment firm of the Hendel family. Hits like “Starboy” and “Blinding Lights” generate consistent revenue, making them attractive to investors seeking stable returns involving streaming, sync licensing and performance rights.

If the deal goes through, it would be among the largest music-backed transactions to date.

Two years ago, Tesfaye explored selling a portion of his music rights with an initial valuation target around $1.3 billion, Bloomberg said, citing one of its sources. Those talks did not result in a deal.

The reported financing deal comes weeks after the singer set a record for the most shows played by a Canadian artist at the Rogers Centre during his After Hours ‘Til Dawn stop in Toronto. Earlier this year, The Weeknd said he was retiring his stage name, but intends to keep making music.

This isn’t the first time a Canadian artist has wanted to sell their catalogue for other business ventures. Two years ago, pop singer Justin Bieber signed a $200 million deal to put his music under the ownership of Hipgnosis Song Management, an investment entity backed by Blackstone Inc. At the time, it was the company's biggest sale to date.