Scooter Braun, manager Justin Bieber, Carly Rae Jepsen and Psy, is meeting with managers and artists to raise a $120 to $200 million venture fund designed, he says, to strengthen their position in the changing music industry. It's a move that has the heads of major record labels both curious and a little worried.
Mr. Braun is in advanced talks, according to a New York Times report, with Drake and his managers, Jason Owen, who represents Shania Twain and Little Big Town; and former Gaga manage Troy Carter. The majority of the $120 million raised so far comes from funds managed by Waddell & Reed Financial, an investment management firm which has previously invested in Hollywood. Other commitments could bring the total to $200 million.
Board members of the new venture include Braun, Thomas Tull, a Hollywood producer and David Politis, founder of tech company BetterCloud. Legendary financier Jeffrey Katzenberg of DreamWorks Animation, is reportedly an informal adviser to the project.
As the music industry has changed, the role of the personal manager has broadened. This new venture would pool the resources of its members to invest in technology companies, publishing and other assets that are normally far outside the realm of managers.
But it could directly or indirectly do much more. If Beiber and Braun's investments grew large and diverse enough, why do they need major label money to finance a new release?
