Apax Partners

Stage Three Music is a music publishing company that buys under-exploited music catalogues. It was set up in 2003 by Steve Lewis, former CEO of Virgin Music (Publishing) and Chrysalis Music.

Stage Three markets song portfolios more intensively than they had been. Two years after inception the company owned rights to songs recorded by Aerosmith, Clint Black, Eric Clapton, Joe Cocker, Michael Gray, Darius, Eminem, David Essex, Janet Jackson, Seal, Smashing Pumpkins, Tears For Fears, Verbalicious and ZZ Top.

Funds advised by Apax Partners made a late venture capital investment in Stage Three after the company, initially backed by Ingenious Ventures, had made investments in music portfolios and songwriters. Apax Partners’ Funds’ investment will help Stage Three buy and invest in more catalogues and songwriters.

In the music industry, rights owners can increase the value of their assets by increasing the number of times the music is used, whether it is in a mobile phone ringtone, in a movie soundtrack or sung by a contestant on one of the popular reality TV talent shows. Rights owners make money whenever the composition of a song is used, unlike record companies that make money only when specific recordings are played. They benefit from adding the ownership to more rights to take advantage of economies of scale.

Steve Lewis, founder of Stage Three, said: “Apax’s general expertise in media investments and their desire to understand the specific issues affecting my business make them the perfect partner to help grow the company.”