Rostrum Pacific secured a $150 million financing deal from New York-based Crayhill Capital Management to fuel its catalog acquisition ambitions.
The partnership, announced Thursday by the parent company of indie giant Rostrum Records, marks a major expansion of its strategy to become the “preeminent independent music company.”
The financing comes from Crayhill Capital Management, a private credit specialist with $2.9 billion in assets under management. Rostrum Pacific CEO Benjy Grinberg plans to use the funds to pursue catalog opportunities “at any scale” and integrate them into the company’s established ecosystem.
Rostrum Records has built its reputation by discovering and nurturing groundbreaking hip-hop talent in Pittsburgh. Grinberg founded the label in 2003 and quickly established it as a launching pad for future superstars.
The label signed Mac Miller in 2010 when he was just 18, helping the young Pittsburgh rapper transform into a chart-topping artist whose debut album, Blue Slide Park, became the first independently released album to debut at No. 1 on the Billboard 200 since 1995.
Wiz Khalifa became another Rostrum success story after joining the label in 2007. His breakthrough single “Black and Yellow” became a Pittsburgh anthem and launched him into mainstream stardom. Both artists helped establish Podium’s reputation for discovering talent and developing it into commercial success.
Over the years, the label’s business scope has continued to expand, culminating in 2023 consolidating multiple operations under the Rostrum Pacific umbrella. The company currently operates Rostrum Records, Fat Beats, Cantora Records and digital distribution platform SpaceHeater.
Launched last year, SpaceHeater is an AI-powered music distribution and analytics platform. The technology provides “unparalleled transparency and accuracy” for tracking how an artist’s music is used to train AI models and determine fair compensation for AI-generated output.
“Securing this funding reflects our confidence in our value creation strategy of leveraging strategic partnerships and collaborative frameworks to drive high-value returns,” said Rostrum Chief Financial Officer Scott Margolin, who led negotiations with Crayhill.
“With this support, we are expanding our reach and deepening our commitment to ensuring the music we care about is heard,” Margolin added. “We focus on catalogs that we can aggressively grow – whether it’s assets we acquire or catalogs we’ve been building for over 20 years.”
Jihane Hassad, director of Crayhill TMT Investment Group, praised Rostrum for its “compelling internal model that drives value creation and strategic growth.” Crayhill has invested more than $500 million in its technology, media and telecommunications strategy, which includes investments in music, film and television libraries.
The deal enables Rostrum Pacific to compete in the increasingly competitive music catalog acquisition market. As global streaming revenue continues to grow, major record labels and investment firms have invested billions of dollars in acquiring music rights.
Rostrum’s catalog, formerly distributed by ADA, is now available exclusively through SpaceHeater. The December 11 announcement signals the company’s aggressive push to expand its music portfolio and establish itself as a major independent player in the evolving music industry landscape.
