BMG has partnered with US asset manager Pimco to acquire music catalogues.

According to the FT, Pimco is the latest large investor who has decided to move into songwriting copyrights.

It follows BMG’s partnership last year with KKR on a $1 billion fund to acquire music rights. The firms recently made a significant investment in the catalogue of ZZ Top.

California-based Pimco has around $2.2 trillion of assets under fund management. According to the report, the Pimco arrangement would be for smaller deals than those of KKR.

Investment firms KKR, Blackstone and Apollo Global Management have invested billions of dollars into copyrights in the past year.

The market for songs is booming with recent deals including the acquisition of David Bowie’s catalogue by Warner Chappell for more than $250 million. Bruce Springsteen agreed a $500m-plus deal with Sony Music Group.

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