CVC Capital Partners has agreed to acquire a majority stake in DistroKid, the independent music distribution platform.
The private markets investment firm will make the investment via its CVC Capital Partners IX fund, DistroKid confirmed on Monday (July 6).
Insight Partners, a longtime DistroKid backer, will retain a “significant minority stake” in the company, according to an announcement.
Phil Bauer will continue to lead DistroKid as President, alongside the company’s existing leadership team.
The transaction is expected to close in the third quarter of 2026, subject to customary closing conditions. Terms were not disclosed.
MBW revealed in January that DistroKid was exploring a sale, with a price of around $2 billion under discussion at the time.
In music circles, CVC is best known for its 2024 investment in Superstruct Entertainment, the live events group it backs alongside KKR.
Superstruct operates more than 80 festivals across Europe and Australia, among them Wacken Open Air and Sónar.
CVC‘s wider entertainment and sports investments have included Stage Entertainment, Formula One and Spain’s LaLiga.
The private markets firm manages approximately €209 billion in assets across private equity, secondaries, credit and infrastructure, according to the firm.
“We’ve been incredibly impressed by what Phil and the entire DistroKid team have built,” said Sebastian Künne, a Partner at CVC Capital Partners.
“DistroKid has earned the trust of millions of artists by staying focused on what they need most. We look forward to partnering with Phil and his team, drawing on our experience across music, entertainment and consumer subscription businesses to help DistroKid support the next generation of artists around the world.”
“DistroKid has transformed how independent artists share their music with the world,” said Deven Parekh, Managing Director at Insight Partners.
“We’re proud of our partnership with Phil and the DistroKid team and are excited to continue supporting the company alongside CVC.”
Founded in 2013 by Philip Kaplan, DistroKid has expanded beyond distribution to offer independent musicians tools including video distribution, instant mastering, direct-to-fan experiences and on-demand merchandise.
The New York-based company claims to handle 30% to 40% of new music releases globally, and says its platform is used by more than 2 million artists.
DistroKid charges artists a flat subscription fee and lets them keep 100% of their royalties.
The company was valued at $1.3 billion following an investment from Insight Partners in August 2021.
Insight Partners, which is retaining its minority stake, has continued to expand across the independent distribution sector.
In January, the firm acquired Berlin-based distributor Zebralution from German collecting society GEMA, as GEMA exited digital distribution.
Kaplan transitioned from DistroKid’s CEO to Chairman in January 2024.
Bauer, previously DistroKid’s Chief Operating Officer, then took over day-to-day leadership as President.
Goldman Sachs & Co. LLC and The Raine Group served as financial advisors to DistroKid. MBW reported the duo were handling its sale process in January.
In 2025, DistroKid launched Direct, a platform for artists to sell merchandise straight to fans.
The service builds on Bandzoogle, the direct-to-fan company DistroKid acquired in 2023, and marked its push beyond audio and video distribution.Music Business Worldwide
