NEW YORK, April 8, 2011 /PRNewswire/ -- Spring Mountain Capital, LP (SMC), a New York based investment management firm that focuses on alternative asset investing, today announced it has become the lead investor in NXTM LLC. Based in Culver City, California, NXTM is a digital media company created to exploit the power of social media and commerce within the music industry. Specifically, NXTM provides superstars, emerging and aspiring artists with the tools necessary to build, manage and monetize their brand online. NXTM expands the digital presence for musicians, including Taylor Swift, Justin Timberlake and many other artists.
SMC holds two seats on NXTM's board and is actively involved with the Company. This investment was made through SMC Holdings III, LP for which Spring Mountain Capital acts as the investment manager. Terms of the deal were not disclosed. SMC's investment will be used to fund NXTM's growth initiatives and the continued development of the Company's social media music platform.
Raymond Wong, Managing Director and head of private equity investing at Spring Mountain Capital, commented, "We are pleased to have the opportunity to partner with NXTM and its talented management team. The metamorphosis of the music industry, coupled with the social media revolution, has created an opening for new business models and innovation. NXTM is strategically positioned to take advantage of new industry opportunities and has the right management team to lead and direct its growth."
"NXTM is excited to have the opportunity to grow our innovative business based on the investment made by Spring Mountain Capital," said Jeffrey Yapp, Chief Executive Officer of NXTM. "The recent launch of our WhoozNXT platform at South by Southwest reflects what sets NXTM fundamentally apart from our competition." WhoozNXT offers live performance opportunities for emerging and aspiring bands based on their fan acquisition on social networks, such as Facebook, Twitter and YouTube.
"We expect a number of interesting developments to unfold over the next few months, as it is a pivotal time for the company and the industry. The industry fundamentals reinforce our conviction in NXTM's strategic positioning. We believe in the potential for value creation from NXTM's differentiated solutions," Mr. Wong said.
ABOUT NXTM AND WHOOZNXT
WhoozNXT (www.whooznxt.com) and parent company NXTM expand the digital presence for musicians, including Taylor Swift, Justin Timberlake and many other artists. With major media partnerships in television, radio, live venues, digital platforms and more, NXTM is the only platform that rewards the online activity of artists (of all levels) with real-world exposure. WhoozNXT works with one uniting vision and one goal, to bring the power back to the bands, and back to the fans. It was created in 2010 by former MTV executive, Jeff Yapp.
ABOUT SPRING MOUNTAIN CAPITAL
Founded in 2001 and located in New York, New York, Spring Mountain Capital, LP ("SMC") is a private investment management firm that focuses on alternative asset investing and offers investors a wide range of strategies designed to produce attractive risk adjusted returns. SMC has a dynamic and opportunistic mindset with a client oriented focus that drives it toward providing investors with intelligent and sophisticated investment opportunities. Based on its extensive network of personal and professional relationships, SMC is constantly searching for insightful investments from a wide range of sources. For further information, please go to www.springmountaincapital.com.
Contact: Wendy Furrer
Spring Mountain Capital, LP
SOURCE Spring Mountain Capital, LP