Jamar Chess forms an investment group to buy rights to Latin American music
It’s no secret that the value of Latin music is skyrocketing.
In April, MBW forecast that the music market for Latin American artists in the United States would generate over $1 billion in revenue for the 12 months of this year.
Last month, new mid-year data released by the RIAA showed that on a retail basis, Latin music is still on track to reach the $1 billion sales mark in the United States this year after growing in the first half of the year 2022 had grown by 23%. reach $510 million.
Now, amid the growing popularity and value of Latin music, a new music investment group called Wahoo Music has formed in the US – and word has it that buying Latin music rights will be a priority.
The company’s first deal through Wahoo Music Fund One is a 50% interest in the publishing and recording catalogs of Oro Solido, described by the company as “one of the most popular merengue groups of the past two decades.” The deal was for an undisclosed sum.
Wahoo Music is led by two music industry veterans, including President Jamar Chess and CEO Paul Tarnopol.
Tarnopole is chairman by Menudo International, while Chess is President and Co-Founder of Latin American music specializing Sunflower Entertainment Group and grandson of the legendary Leonard Chess, who founded Chess Records.
Tarnopol told MBW that “Jamar’s expertise in music publishing and my background in digital distribution and licensing give us the ability to rate, purchase and manage both songs and masters.”
“This is a key reason why this partnership makes sense,” he added
Chess, whose Sunflower Entertainment Group partnered with Spirit Music Group to launch Spirit Music Latino in 2016, told MBW that “Latin is a priority” for his new Wahoo Music venture.
“I’m bullish on the genre and region, but we’re open to ‘non-Latin’ deals,” he added. “I know the Latin American region well and there are a lot of opportunities, especially in Colombia, Mexico and the Dominican Republic.”
According to Tarnopol, Wahoo Music Fund One was created “specifically” for the Oro Solido deal and was funded by both Wahoo Music and an unnamed third party.
“Individual funds will be established for each catalog acquisition and most of the funds will be for assets under $10 million,” he added.
“The long-term plan is to build an extensive music catalog that will continue to grow in profitability for our company, partners and artists.”
“I know the Latin American region well and there are a lot of opportunities, especially in Colombia, Mexico and the Dominican Republic.”
Wahoo says it acquired an interest in the Oro Solido catalogs from founding member Raul Acosta. According to a press release announcing the deal, “Acosta acquired the rights in 2016 from Platano Records, the label that originally released the recordings.”
With a catalog spanning 10 studio albums, four live albums and three “best of” compilations, Wahoo Music says Oro Solido was “one of the most successful merengue artists of our time.”
Also included in this acquisition are the group’s future greatest hits, live and/or acoustic albums, as well as Sound Exchange royalties and related rights for each album in the catalogue.
Wahoo says the deal signals his “excellent relationship” with Acosta “and perpetuates and advances merengue’s important status as the national dance of the Dominican Republic.”
“I had an existing relationship with Raul Acosta p/k/a Oro Solido, so I’m well aware of the catalog and earnings,” Jamar Chess told MBW. “Raul’s catalog of merengue compositions is regarded as a classic of the genre and throughout the Dominican Republic and LATAM. It is the perfect first transaction to start the company with Paul.”
“While most music investment groups target large catalogs, our focus is on smaller, high-quality catalogs that are often overlooked by typical music investment groups.”
Commenting on what sets Wahoo Music apart in the M&A space, Paul Tarnopol stated, “We are confident in the future of the music industry and in our ability to efficiently manage intellectual property.”
He added, “While most music investment groups target large catalogs, our focus is on smaller, high-quality catalogs that are often overlooked by typical music investment groups.”
“I have had a great working relationship with Jamar Chess for many years, selling Oro Solido and my label FestivaMusic/24k Records, and I look forward to partnering with Wahoo Music to maximize our catalog and concerts.”
Raul Acosta, Oro Solido
Raul Acosta (Oro Solido) said in a press release announcing the deal, “I have had a great working relationship with Jamar Chess for many years, distributing Oro Solido and my label FestivaMusic/24k Records and I am excited to partner with Wahoo Music to maximize our catalog and concerts.
“I would also like to thank our agent manager, Elis Pacheco, and attorneys, Michael Selverne, and www.Festiva2go.com’s in-house attorney, Marc Stollman, who helped make this deal possible.”music business worldwide
https://www.musicbusinessworldwide.com/jamar-chess-of-the-chess-records-family-launches-investment-group-to-buy-latin-music-rights/ Jamar Chess forms an investment group to buy rights to Latin American music