Francisco Partners has exited its investment in Muse Group, the owner of Audacity, MuseScore, Ultimate Guitar and Hal Leonard.
The Muse Group transaction was financed through senior credit facilities arranged by J.P. Morgan and cash on hand, rather than a new equity backer, the company said last week (June 3).
Muse Group remains majority owned and controlled by founder and CEO Eugeny Naidenov, alongside Mo Chahdi as Executive Chairman and COO.
The financial terms of Francisco Partners‘ exit were not disclosed.
The move follows Francisco Partners‘ agreement in March to sell Kobalt to Primary Wave.
Francisco Partners first invested in Muse Group in 2023.
That growth investment backed Muse Group’s acquisition of sheet music publisher Hal Leonard, the value of which was also not disclosed.
The Cyprus-based company began as Ultimate Guitar in 1998 and grew into a broader business through acquisitions including MuseScore, Audacity and, in 2023, Hal Leonard.
“Muse Group is now ready for its next phase. We have the products, the team, the community, and the ambition to keep building technology that helps musicians do even more with their creativity.”
Eugeny Naidenov, Muse Group
“I founded Ultimate Guitar in 1998, driven by a passion to improve the lives of musicians every day,” said Eugeny Naidenov, founder and CEO of Muse Group.
“Francisco Partners helped us expand that vision to more markets, more products, and more creators around the globe.
“Muse Group is now ready for its next phase. We have the products, the team, the community, and the ambition to keep building technology that helps musicians do even more with their creativity.”
“We are grateful for Francisco Partners‘ partnership and the support they provided across this journey – helping to execute and fully integrate the acquisition of Hal Leonard and acting as a valuable strategic partner in the strengthening of our global footprint, product offering, and technology.”
Mo Chahdi, Muse Group
Mo Chahdi, Executive Chairman and COO, Muse Group, added: “This is an important milestone for Muse Group and a strong reflection of what the team has built.”
“We are grateful for Francisco Partners‘ partnership and the support they provided across this journey – helping to execute and fully integrate the acquisition of Hal Leonard and acting as a valuable strategic partner in the strengthening of our global footprint, product offering, and technology.
“Our next chapter is focused on execution, product innovation, and making the Muse ecosystem more connected and valuable for creators.”
Muse Group says its brands reach over 500 million annual musicians, learners, educators, creators, publishers and audio professionals.
Its products span learning on Ultimate Guitar, notation in MuseScore Studio, recording in Audacity, audio sharing on Audio.com, and publishing, education and licensing through Hal Leonard.
The company said it will continue investing in product innovation, AI-enabled creative workflows, strategic partnerships and selective acquisitions.
Muse Group said it intends to embed AI into notation, audio, transcription, learning and creative production across the tools its users already rely on.
Recent activity includes the merger of Hal Leonard’s European retail site Musicroom with Sheet Music Plus in March, alongside new monetization features on Audio.com and an AI-powered score converter for MuseScore.
“Since our initial investment, the company has delivered impressive growth, completed its transformational acquisition of Hal Leonard, and built a leading global music technology platform.”
Lee Rubenstein, Francisco Partners
“It has been a privilege to work with Eugeny, Mo, and the Muse Group team over the course of our partnership,” said Lee Rubenstein, Managing Director at Francisco Partners.
“Since our initial investment, the company has delivered impressive growth, completed its transformational acquisition of Hal Leonard, and built a leading global music technology platform.
“We are proud of the company’s accomplishments and are confident Muse Group is well positioned for its next chapter of growth.”
Francisco Partners‘ departure from Muse Group lands amid a run of investor exits across the music business.
In March, Francisco Partners agreed to sell Kobalt to Primary Wave, having acquired a 90% controlling stake in the publisher in 2022 for approximately USD $750 million.
In 2024, KKR exited Chord Music Partners when Universal Music Group bought a 25.8% stake for $240 million, valuing Chord at $1.85 billion.
Muse Group said its ambition is to build a technology platform for music learners and creators, helping them move from learning to producing, recording, publishing, sharing, licensing and monetizing their work.Music Business Worldwide
