Kobalt secures #2 million in second round.

Investee Company – Kobalt Music Group Ltd (UK)

Investee Company Business Type – Music publishing company

Type of Financing – Development

Equity Providers – SPARKidea Holding SA, NewMedia SPARK plc and a number of individuals

Equity Leader (Individual) – N/A

Debt Providers – N/A

Debt Type – N/A

Debt Leader (Individual) – N/A

Equity Amount – £2 million

Total Deal Value – £2 million

Other Advisors – Allied Partner Ltd

Comments – Kobalt Music Group, an independent high-tech music publishing company, has secured a £2 million second round of financing. This investment round was led by SPARKidea Holding, a private equity firm set up as a joint venture with NewMedia SPARK, investing in media and entertainment. NewMedia SPARK and a number of high net worth individuals also participated.

Kobalt is a music publishing company formed as a joint venture between SPARKidea and Torbjorn Sten, Johan Ekelund and Mauro Scocco, the founders of Swedish record company Diesel Music. The firm operates through two business areas: Kojam Music and Kobalt Music Services.

Kojam Music is the creative publishing arm of Kobalt, which is continuing to build a portfolio of world class songwriters and artists including Eagle Eye Cherry and Damon Gough (Badly Drawn Boy). Kobalt Music Services has developed an innovative technology platform, which provides rights owners with a new level of service through the effective and cost efficient collection and administration of royalty revenues.

The new capital will be used by Kobalt for investments in song catalogues and songwriters, technology platforms and as working capital. By leveraging the combination of current technology, creative industry expertise and management strength, the company is aiming to become a global, independent music publishing and exploitation group.

Joakim Borgsved, chairman of Kobalt, commented: “We are very pleased to have secured this second round of financing. Kobalt has made significant progress since the business was founded in 2001, the further funding will enable us to continue to grow the business and firmly establish our position as a leading player in the music publishing field.”