ben katowskiThe man who previously ran Blackstone-backed music catalog investment firm Rekognition Music Group was appointed CEO of advance financing platform Pipeline on Thursday (Oct 15).
Founded and headed by veteran music investor and former Francisco Partners private equity executive Matt SpetzlerThe pipeline launched with $200 million of loan capital to independent music companies to finance artists, using the labels’ digital royalties as collateral. As more artists sign short-term distribution deals that allow them to retain ownership and often the majority of the income from their music, keeping enough cash on hand to retain rising stars is a frequent problem for indie companies.
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Pipeline partnered with Merlin and acquired tech-forward music valuation firm Clarity Partners earlier this year. Now, following the sale of Rekognition’s 45,000-song portfolio, which included compositions by Neil Young, Shakira, Journey and the Red Hot Chili Peppers, Katowski has teamed up with Spetzler to bring the pair’s music rights, investment and business-building experience to Pipeline’s partners.
“We started the pipeline because there is so much value in music IP, and many of the companies that own it don’t have the support to realize their ambitions,” Spetzler said in a statement. “Ben is one of very few who have built, financed and operated a world-class rights business at scale, delivering very strong results for investors while caring about the music and the people behind it.”
During Katowski’s time leading Rekognition, it completed a $372 million asset-backed security issuance in July ahead of the sale of its catalog to Sony Music Publishing. Prior to the recognition, Katowski spent seven years at BMG, where he rose to the role of COO. Originally from South Africa, Katowski got his start at Counterpoint Systems, where he developed technology solutions for managing intellectual property.
“I have spent my career at the intersection of music, technology and investing, working with some of the most innovative companies in our business,” Katowski said in a statement. “Pipeline is creating a different model for how companies and creators can access capital, giving songwriters, artists, labels and publishers greater flexibility and control over their growth. Matt and the team have built something impressive and I’m excited to join them to empower the music and broader creative industries.”