Clive Rich to head new Digital Music Practice and build portfolio of Digital Music investments

Music Industry Visionary and Digital Pioneer joins Ariadne Capital

Clive Rich to head new Digital Music Practice and build portfolio of Digital Music investments

London, UK - 26 November, 2007. Ariadne Capital, the London-based investment and advisory firm, today announces that Clive Rich has joined the company as Head of its Digital Music Practice. Rich, with 25 years experience in the music industry, formerly led the Futures Division at SonyBMG. This Division, the first of its kind in the UK Music Industry, was responsible for all Sony BMG’s new and developing business - including its Digital Music Business, TV Programming and Brand partnerships.

The move brings together Rich's formidable understanding of the Content industry and his access to exciting and emerging digital services and platforms and Ariadne's unique Investor Network and knack for spotting digital break-through businesses. This is the first of a series of formal practice areas that Ariadne is establishing and heralds its commitment to building a successful content-led Digital Portfolio though investing in and advising the sector

Ariadne will publish its own report on the Digital Music industry in 2008.

Builds on existing partnership

Rich, via his company, Rich Futures, has co-led Ariadne mandates and investments during 2007 in: IndependentIP, the digital music supply chain company; TheBizmo, the embeddable player/e-store; and Generator X, the lifestyle recommendation engine. He and Ariadne are in discussions about bringing the rest of his portfolio of music investments to Ariadne Capital as the cornerstone of the merged interests.

"We’ve had a very successful partnership over the past half year, and wanted to formalise it to establish a significant presence in shaping the music industry of tomorrow," says Julie Meyer, CEO of Ariadne Capital. "Clive’s insight into how various music start-ups can cooperate and unlock value is without peer, and I’m really pleased that he has chosen Ariadne to make his home for his post-corporate life. I want Ariadne to be known as the best place to go for emerging Digital Music and Entertainment businesses. Clive will bring his unique skills and connections to an enterprise that understands, respects and is excited by both Content and Content owners."

Music Industry has the potential for rude health

Says Rich, "Although the Record Industry has been struggling, the Music Industry has the potential for rude health. ‘Business A&R’ is what the Industry needs now; by finding new platforms, channels, user experiences and connecting them the business value chain for music can be restored and flourish . I chose Ariadne as the best place to be in order to leverage the opportunities which I can see and want to pursue because ‘Business A&R’ is exactly what Ariadne does across the whole Digital sector, combining access to significant funding with empathy for creative entrepreneurs. Together, I believe we will find and develop the Digital Hit businesses of tomorrow."

Ariadne’s business model is a blended one of investment and advisory collaboration. With 15 equity stakes in high-growth companies, it secures equity in early stage, high growth companies - partially in exchange for services, and partially from the capital sourced from the founding 42 Ariadne Investor Members, other private investors and family offices. Ariadne is known particularly for its business development and UK market entry strengths, and a core of Executives in Residence who work closely with its portfolio.

About Ariadne Capital

Ariadne Capital is an investment and advisory firm focused on game-changers in the digital media, communications and life-services sectors. Based out of London, with 42 leading entrepreneurs as our founding investors including the founders of Hotmail, Worldpay, Betfair, SES Astra and others, Ariadne has been an early advisor to Skype [Ebay], Espotting [MIVA], Kashya [EMC] and SpinVox.

About Clive Rich

Rich has a 25 year pedigree in the Music business as a Lawyer, Strategic Director and Innovator. He is a resourceful and creative negotiator and deal maker, and a successful change-agent with a record of generating new business quickly and profitably.

Over the last year Rich has been running "Rich Futures", under which banner he has been Business Developing and raising finance for an impressive array of new and emerging Digital Music companies. Prior to that, between November, 2004 and November, 2006 Rich created and ran Sony BMG’s "Futures Division" as SVP. This Division, the first of its kind in the UK Music Industry, was responsible for all Sony BMG’s new and developing business - including its Digital Music Business, TV Programming and Brand partnerships. Its bold and unique mission was to transform the Record Company into a 360 degree Music Entertainment Company.

During this period, Futures developed an annual turnover of US$50 million, including a six-fold increase in Digital income. Other Futures highlights included responsibility for the successful business development of Simon Cowell’s "Syco" - the TV Joint venture with Sony BMG. Rich represented Syco/Sony BMG in concluding agreements with Fox, ABC, NBC, ITV, Fremantle and 19 Television. Clive also created a new TV Joint venture for Sony BMG with Richard Hopkins and David Mortimer, called "Fever Media". Hopkins and Mortimer were responsible at the BBC for shows such as "Strictly Come Dancing", "Dragon’s Den" and "Honey We’re Killing the Kids", and left to form a worldwide TV Venture with Sony BMG in April, 2006.

Other achievements from his extensive BMG career as Business Development Executive and lawyer include;

• Running BMG’s Digital Division, driving Turnover to double that achieved by the similarly-sized Sony UK during the year prior to the BMG merger.
• Introduction of a ground-breaking new artist recording contract. This initiative created standards of transparency, perceived fairness and ease of use which have set a new benchmark for UK recording agreements.
• Negotiation of multiple BMG agreements for Pop Idol recording rights worldwide with 19.
• Negotiating many major, multi-territory deals for BMG, including those with Dido; Westlife; MTV and Italian superstar Eros Ramazzotti.
• Rolling out to Europe of the highly successful Executive Negotiation Training Programme he had devised and created for BMG.
• Chairing PPL, the cross-industry collection society. PPL licenses the UK Record Industry’s recordings to users such as BBC TV and Radio, ITV and the ILR stations, and Clive helped grow annual revenues to £60 million.

Clive has also held Business Affairs posts with BMG Music Publishing and Warners. He is a Barrister and was educated at Lincoln College, Oxford and Latymer Upper School.

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