Reed Smith’s Josh Love notes music investing remains exceptionally active, with over $4 billion in deals. AI is reshaping the industry by streamlining royalties and licensing. Thoma Bravo sold Command Alkon to Francisco Partners, a tech firm serving heavy industries.

Clearlake partnered with OpenAI to deploy AI tools across its portfolio, aiming to boost efficiency. Other PE firms like Blackstone and TPG are also investing in AI. Love highlights a maturing market with major labels and financial buyers collaborating.

AI’s dual role—enhancing efficiency while raising IP concerns—is key. The music sector’s growth contrasts with some exits, as investors diversify strategies. OpenAI’s partnership with Clearlake includes AI Labs to prioritize use cases. Thoma Bravo’s sale of Command Alkon reflects strategic shifts toward tech.

AI adoption is accelerating across PE, with firms like EQT and Vista Equity partnering with Google.