UK Management Group YMU Exploring Financial Options to Address Mounting Debt: Report

Global artist management company YMU Group, which counts Steve Aoki, 3LAU, Paris Hilton, Yung Gravy and British pop group Take That among its music clients, is exploring financial restructuring options to address its heavy debt load, according to a news report.  

U.K. television outlet Sky News reports that lenders for the London-headquartered company, which is majority-owned by private equity firm Trilantic Europe and has offices in New York, Los Angeles and Washington, have appointed consulting firm AlixPartners to carry out an independent review of YMU Group’s finances. 

Citing sources in London’s financial center, Sky says that YMU Group owes Lloyds Banking Group and Permira Credit around £70 million ($87 million). The article claims the company has agreed with its lenders to appoint a chief restructuring officer amid concern over the group’s debt. 

However, the same report also quotes an anonymous source — described by Sky as a person “close” to YMU — who told the news organization that the management company is “growing” and there are no “concerns about its future.” 

YMU Group, Trilantic Europe and AlixPartners did not respond to requests to comment when contacted by Billboard on Thursday (June 8).

YMU was founded in 2018 when U.K.-based management firm the James Grant Group was majority-acquired by Trilantic Europe and rebranded as YM&U — standing for You, Me and Us. 

According to the company’s website, YMU employs around 350 people in the United Kingdom and the United States and has more than 1,000 management clients, spanning television, film, social creators, literature, sports, entertainment and music. 

Other notable music clients include Grammy Award-winning producer De La Cruz, American singer-songwriter Kacy Hill, British pop stars James Arthur and Jesy Nelson, and Norwegian dance duo Kream.   

YMU’s music team is headed by global president of music Matt Colon, who doubles as the manager of dance music DJ Aoki. Colon joined the company after Deckstar, an artist management company he co-founded, was acquired by the James Grant Group in 2017.

Mary Bekhait has held the position of YMU Group’s global CEO since January 2021. In February, former NBCUniversal marketing executive Linda Yaccarino was appointed YMU group chair. This week, Yaccarino officially took over the CEO role at Twitter from Elon Musk. 

According to its latest financial accounts, YMU Group’s revenues totaled £41.4 million ($51.8 million) in the year ending Dec. 31, 2021 — a rise of around 10% on the previous year. EBITDA (earnings before interest, tax, depreciation and amortization) was £8.2 million ($10.3 million) in 2021 with adjusted EBITDA (excluding exceptional costs) listed at £10.5 million ($13.1 million).    

Despite the rise in revenue, YMU Group recorded a loss after tax of £4.8 million ($6 million) in 2021, which the company attributed to net interest costs of £5.8 million ($7.3 million) and £7.2 million ($9 million) in depreciation and amortization. That’s on top of a loss of £52.8 million ($66.1 million) in 2020, according to financial filings at the U.K.’s Companies House. 

YMU’s accounts state that as of Dec. 31, 2021, the company had net liabilities of £74.7 million ($93.6 million) “largely as a result of the group’s long-term borrowings, which are not repayable until 2025 and beyond.” 

In its 2021 year-end filing, YMU Group said it continues to look for growth “organically and through acquisitions in both the U.K., North America and increasingly mainland Europe,” with the development of the group’s overseas operations “a key strategic focus.” 

YMU’s financial accounts for 2022 are not due to be filed until the end of September.