The Weeknd Secures $1B from Lyric Capital in Ownership-First Deal
By Trevor Loucks
Founder & Lead Developer, Dynamoi
The era of the simple catalog cash-out just hit a massive speed bump. In a move that redefines artist leverage, The Weeknd (Abel Tesfaye) has finalized a strategic partnership with Lyric Capital Group valued at roughly $1 billion.
While the valuation puts this in the same rarefied air as Sony’s recent Queen acquisition, the structure is the real headline. Tesfaye isn't handing over the keys; he is utilizing a Royalty Backed Note to access massive liquidity while retaining ownership.
The mechanics of $1B
This deal breaks the binary choice that has defined the last five years of music finance: sell your legacy for cash (the Springsteen model) or keep your rights and wait for the quarterly checks.
Instead of a standard Asset Purchase Agreement (APA), Tesfaye and Lyric have structured a deal where the artist effectively securitizes his future income streams.
Key insight: A
Royalty Backed Noteallows the artist to borrow against the future earnings of the catalog. The investor gets a priority claim on the cash flow to repay the capital, but the underlying asset stays on the artist’s balance sheet.
The specifics:
- Scope: Covers recorded music and publishing rights from career inception through 2025.
- The Keep: Tesfaye retains master ownership, creative control, and a shareholder position in the venture.
- The Exclusions: Future material (post-2025) is off the table, preserving his ability to negotiate new terms for the next phase of his career.
The streaming multiple
For years, industry analysts argued that "legacy" rock catalogs (Beatles, Dylan, Queen) deserved higher multiples than modern pop because their longevity was proven. This deal flips that logic on its head.
Based on reports that the catalog generates approximately $55 million in Net Publisher/Label Share (NPS/NLS), the $1 billion valuation implies an 18.2x multiple.
This is an aggressive bet on the durability of the streaming economy. Investors are wagering that hits like "Blinding Lights"—the most-streamed song in Spotify history—will hold their value over decades just as firmly as "Bohemian Rhapsody."
Solving the liquidity trap
This transaction signals a maturity in the music asset class. We are moving from a "land grab" phase—where funds like Hipgnosis bought everything in sight—to a "strategic finance" phase.
For superstars, the implications are clear:
| Feature | Traditional Buyout | The Weeknd's Model |
|---|---|---|
| Liquidity | 100% Upfront | High Upfront + Residuals |
| Ownership | Transferred to Fund | Retained by Artist |
| Control | Lost | Retained |
| Upside | Capped at Sale Price | Open-ended |
Why Lyric made the bet
Lyric Capital, which also owns independent publisher Spirit Music Group, has positioned itself as the "artist-friendly" alternative to the major labels and aggressive aggregators. By accepting a structure that leaves the artist in charge, they secured an asset that many competitors would have killed for.
The benefit: Lyric deploys significant capital into a high-yield, proven asset class (The Weeknd's streams). The risk: Without full ownership, they have less control over licensing strategy if the artist decides to withhold music from certain platforms or sync opportunities. The signal: Private equity is becoming comfortable with minority positions and complex debt structures if it means accessing top-tier IP.
What this means for rights holders
For managers and attorneys representing heritage acts or modern superstars, the playbook has changed. The Weeknd has proven that you don't have to sell the farm to reap the harvest.
Expect to see more asset-backed securitization deals where artists treat their catalogs like real estate portfolios—leveraging equity to fund new ventures while keeping their names on the deed.
About the Editor
Trevor Loucks is the founder and lead developer of Dynamoi, where he focuses on the convergence of music business strategy and advertising technology. He focuses on applying the latest ad-tech techniques to artist and record label campaigns so they compound downstream music royalty growth.
