The Weeknd seeks $1 billion financing backed by music catalogue

The Weeknd is reportedly working on a plan to raise $1 billion in financing, using his music catalogue as collateral. According to Bloomberg, the deal would involve publishing rights and master recordings, with New York-based Lyric Capital Group leading talks and seeking additional investors.

Consequently, the Canadian superstar-born Abel Tesfaye-could leverage his vast catalogue, which generates steady revenue, to secure investor backing. Rather than selling outright, he would pledge his stake in publishing and masters while maintaining creative control. This approach mirrors how investors increasingly view music rights as a stable asset class.

Meanwhile, sources familiar with the negotiations described a proposed structure involving $500 million in senior debt, $250 million in junior debt, and $250 million in equity. If finalized, the deal would give The Weeknd resources to expand ventures such as his production company, Manic Phase. Importantly, Lyric already owns Spirit Music Group, whose roster includes artists like Tim McGraw and Ingrid Michaelson.

In addition, Tesfaye’s publishing rights currently sit with Chord Music Partners, a consortium involving Universal Music Group and Dundee Partners. Given the global success of tracks like “Starboy” and “Blinding Lights”, his catalogue offers reliable returns across streaming, sync licensing, and performance royalties.

Finally, if the deal closes, it would rank among the largest music-backed financing arrangements ever. Notably, the move echoes Justin Bieber’s 2023 $200 million catalogue sale, reinforcing a growing trend of superstar artists leveraging their music for financial power.