TOKYO, Mar 30 (Pulse News Wire) – Avex Inc. (7860.T) announced today that its board of directors has approved the establishment of two special purpose companies (SPCs) aimed at enhancing music catalog management operations in the United States and overseas markets.
The first company, Avex Catalog Fund 1 LLC, will be established in Delaware, USA, with a planned capital of $10 million. It will operate under the leadership of CEO Brandon Silverstein and serve as a wholly-owned subsidiary of Avex Music Group LLC, which holds a 100% stake. The second company, Avex Song Fund 1 LLC, also based in Delaware, will have a planned capital of $5 million and is expected to become a consolidated subsidiary of Avex Inc. Both entities aim to manage and utilize music-related rights. Investment in these SPVs is scheduled to take place in April 2026.
Financing for acquiring music catalogs will be secured through non-recourse loans from local financial institutions with deep expertise in the music industry, allowing for potential future large-scale acquisitions while minimizing interest costs. This strategy is anticipated to maximize financial returns and create additional opportunities for future acquisitions and sales. Regarding the impact on fiscal year March 2026 earnings, the company expects a minor effect. As of now, the initial capital investment stands at $10 million but could reach up to $15 million depending on the acquisition status of music catalogs. Any further developments requiring public disclosure will be promptly communicated.
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