As fans dance beneath the festival lights and lasers, few stop to ask: Where does our ticket money really go?
Electronic music festivals are big business, and some of the largest players in the scene are now backed by private equity firms like KKR (Kohlberg Kravis Roberts). With billions in assets and a portfolio that spans from music rights to live festivals- and even investments in industries like military surveillance- KKR’s growing involvement in live entertainment has drawn notable attention in recent months.
From Strobe Lights to Stock Portfolios
“Festivals That Fall Under Superstruct/KKR”
KKR (Kohlberg Kravis Roberts) has played an increasingly prominent role in live entertainment, music rights, and event venues. In 2021, KKR partnered with BMG (Bertelsmann Music Group) to create a platform for acquiring music rights and catalogs — expanding their reach into recorded music and publishing rights (Financial Times, 2021.) KKR also has historic ties to the venue management business: through prior investments in SMG (a venue management company that merged into ASM Global), KKR was indirectly involved in large-scale venue operations, although Onex Corp. and AEG ultimately control ASM Global (Reuters, 2018.)
On paper, private equity involvement can mean slick production, bigger headliners, and global expansion. But as KKR’s influence grows, questions have emerged about the broader implications of its diversified investments.
The Dark Side of Diversification
KKR’s portfolio spans far beyond music and live entertainment. The firm has made significant investments in defense, surveillance, and cybersecurity industries. For example, in 2021, KKR led a $130 million funding round for Vectra AI, a cybersecurity company focused on AI-powered threat detection and monitoring TechCrunch, 2021. Additionally, KKR acquired Novaria Group, a supplier of components to the aerospace and defense sectors, that same year KKR press release, 2021.
These are part of a broader trend in KKR’s portfolio, which includes companies involved in smart policing tech, aerospace systems, and defense components KKR Portfolio Overview. This diversification has led some observers to raise questions about whether entertainment revenues- including ticket sales- ultimately contribute, in part, to industries tied to defense and surveillance.
The Capital Behind the Culture
Private equity firms like KKR aren’t in the business of music—they’re in the business of profit. When they invest in festivals or entertainment infrastructure, it’s not for love of the music. It’s to generate returns for investors, often by cutting costs, consolidating operations, or upselling data and services.
This financialization of culture poses an existential question for the electronic music scene: Can a movement rooted in underground resistance, anti-authoritarianism, and community survive when its infrastructure is owned by firms with ties to surveillance capitalism and militarization?
KKR’s Expanding Role in the Music Industry
“Inside KKR’S Investments in Music”
KKR has made significant investments in the music sector, acquiring assets related to music rights, catalogs, and live events. In the past few years, KKR has been involved in transactions with BMG, Kobalt Capital, Chord Music, and others, gaining ownership or stakes in large catalogs of music publishing rights. In October 2024, KKR acquired Superstruct Entertainment, a company that operates over 80 music festivals globally, including Sónar, Field Day, Boiler Room, Awakenings, DGTL, and Mysteryland.
Artist Boycotts and Collective Actions
Since the acquisition of Superstruct by KKR, some artists, collectives, and fans have chosen to withdraw from events or express concern about private equity ownership of cultural spaces. Initiatives such as strike funds have been launched to support those who decide not to participate in KKR-linked festivals. The motivations cited in various public statements and campaigns include concerns over ties between KKR’s investments and geopolitical issues, as well as the broader implications of private equity ownership in the music industry.
Developments in Europe and North America
In Barcelona, Sónar festival proceeded amid artist cancellations (approximately 30) and refund requests from some attendees. Organizers issued statements emphasizing that they had no role in the financial transaction between KKR and Superstruct, describing it as:
“A purely financial transaction in which we had no involvement, no say, and no vote.”
In the Netherlands, festivals such as DGTL, Mysteryland, Zwarte Cross, and Amsterdam Open Air saw artists back out, and some organizers made efforts to distance themselves from the ownership controversy.
The issue has also gained attention in North America, where groups of DJs and venues have taken part in boycotts or solidarity campaigns.
Via DJ Mag
Boiler Room, known for spotlighting underground electronic music, became a focal point of protests in the U.S. after its parent company was acquired by Superstruct, owned by KKR. Boiler Room stated it had no say in the sale and that its editorial independence remains unchanged. In response, artists and collectives in cities like New York and San Francisco launched boycotts and strike funds, urging DJs to withdraw from KKR-linked events and raising awareness about private equity’s growing role in live music.
“PLUR” in a Post-Private Equity Era
In light of these recent events, let’s bring it back to our roots- PLUR. The electronic music community has long championed values like peace, love, unity, and respect. But these ideals clash starkly with the financial forces now shaping the festival landscape. When the same money that funds a euphoric night under the stars also bankrolls biometric tracking and AI weapons systems, the dancefloor becomes a battleground of ethics and accountability.
In an era where entertainment is just another asset class, the next revolution might not start in a warehouse- it might start with a receipt.
What Can Fans Do?
- Follow the Money: Research who owns your favorite festivals and venues. Transparency is rare, but investigative journalism and public records can help.
- Support Independents: Seek out independently owned festivals, venues, and artists who operate outside of private equity control.
- Push for Accountability: Ask festivals to disclose major investors and their broader business ties. Pressure organizers to adopt ethical investment standards.
Looking Ahead: Understanding the Ongoing Debate & Bigger Picture
As KKR’s role in the global music industry continues to evolve, the conversation around private equity’s presence in culture and entertainment is likely to persist. From artist withdrawals to public statements by festivals, recent developments reflect broader questions about ownership, ethics, and the future of live music. This overview is intended to inform and provide context, allowing readers to better understand the complexities without endorsing any particular viewpoint.