Jive records are not just refreshing because they are reminiscent of a time before reality TV when pop acts were crafted with some sensibility, thought and intelligence. Or because they surface on a rejuvenated label with a rich pop heritage which once ruled the charts with acts such as Britney Spears, Backstreet Boys and Justin Timberlake. Six D are refreshing because they tap into youth culture in a way that no pop act has previously. Therefore it’s no wonder that when Lady GaGa’s choreographer saw the six-piece ‘street dance pop act’ she proclaimed them “the future of pop” while Jimmy Iovine was left exclaiming, “Damn! I wish I’d thought of that!” Manager Darren Michaelson agrees, noting, “Pop has got so crowded and people have lost sight of what’s fresh and unique and different. If Simon Fuller or Simon Cowell were creating a pop band like Spice Girls or S Club now it would be Six D. It’s about taking pop to the next level.” Michaelson – who works for the Universal-owned Twenty-First Artists and began his career comanaging Smashing Pumpkins – had the idea for the act while managing a freerunner, Sebastian Foucan, appearing on the Madonna Confessions tour in 2006. He explained, “I was watching the freerunners in the rehearsals and suddenly thought – wouldn’t it be amazing if they sang?” He exhausted his contacts in his five-year worldwide search through “hundreds of kids” for the right three boys and three girls who eventually made it into the group; all of who are British, aged 15 to 23 and can genuinely sing and dance. The youngest was found almost three years ago, aged 13, Levon De Silva, the then World Street Dance Champion. He discussed the idea of the band with Jive MD Nick Burgess, a childhood Liverpudlian friend, over lunch two years ago which led to Burgess’ involvement in putting the band together and eventually signing them “when it evolved into more than just about the music, but a lifestyle pop band”. Burgess said, “I never wanted a pop band, I wanted a challenge. Street dance is the thing all kids are obsessed with everywhere in the world. All six had to be able to stand on their own, have genuine talent and attitude and we have got that. And what the Rock Steady Crew did for Breakdance in the Eighties it would be great to do that with Six D and street dance and create idols for kids.”

Burgess’ vision to make “a global pop record” took him and the group to LA and Miami; “I wanted to get a sound, not a collection of 12 songs, so when you put it on, it has flow and vision” – where they worked with Antwoine “T-Wiz” Collins, Wayne Wilkins (Cheryl Cole, Beyonce), Rico Love (Usher, P Diddy, Kelly Rowland), Jim Jonsin (Beyonce, Eminem, Drake), Jukebox (Willow Smith) and Priscilla Renea (Cheryl Cole). Six D might just prove to be the right act, on the right label, with the right songs, and the right management and with the right ethos – at the right time.

Colin Lester has sold over 35m records in his career, and in recognition of his achievements has been awarded The Peter Grant Award for Outstanding Achievement from the MMF (Music Managers Forum) and is also a recipient of the prestigious Gold Badge Award by BASCA (The British Academy of Songwriters and Composers Association). In 2010 he became CEO of Twenty First Artists, the globally renowned artist management company owned by Universal Music.

Colin Lester was among a recent panel of advisers at Jewish Care’s business mentoringevent, attended by 100 young professionals. Other mentors were Boxing promoter Frank Warren (second left) , Elaine Stern, Colin Gottlieb, Simon Brooke, Derek Zissman and Daniel Amini.

Jewish Care is the largest health and social care organisation serving the Jewish community in London and the south east of England. They run over 70 centres and services, caring for more than 7000 people every week. Their clients emotional needs are just as important as their physical requirements and providing for their day to day needs is just the beginning. Jewish Care work across the community and provide care regardless of the level or nature of an individual’s religious observance.

In its first venture, TFR will handle clients from Worlds End, while Roberton will operate TFR on a day-to-day basis. Worlds End clients now being repped by TFR include Larry Klein, Nick Launay, Stephen Lipson, Tim Palmer, Atticus Ross, Peter Katis, George Drakoulias and Matthew Wilder.

With offices in N.Y. and L.A., Twenty First Republic will be overseen by Roberton and Tom Mackay, who will also continue EVP A&R for Universal Republic. The company will combine the creative resources of Universal Republic and the extensive management experience of Twenty First Artists to discover, nurture and develop the careers of producers and engineers. That includes facilitating new revenue-generating business while creating cross-marketing and promotional opportunities for its clients.

Said Monte Lipman: “As we continue to expand our business, we are going from strength to strength with Colin through this innovative venture. Through Twenty First Republic, we will be tapping into music and the creative process in its purest form, while leveraging the resources of our company to find production talent and extend their reach in the marketplace.”

Commented Lester: “This is an exciting new venture and a watershed moment for Twenty First Artists. It opens up a myriad of opportunities for our business. By combining the scale and reach of Universal Republic in the U.S. with the management and brand development experience of Twenty First Artists, we are creating the preeminent leader in this fast-growing area of the business.” 

Added Mackay: “Worlds End is one of the most respected management companies in the music industry, and this has everything to do with Sandy’s innovation, his entrepreneurial approach and the tremendous success he and his team has achieved. We’re delighted to be working with them and one of the most distinguished rosters of clients in the business.”

Stated Roberton: “We’re excited to be joining Monte, Colin, Avery and Tom for what we believe to be the next step in the evolution of our business. Twenty First Republic has the reach and influence to not only continue but enhance the quality of representation that we’ve provided for so many years at Worlds End.”

HITS – 29th March 2011

Twenty First Republic (TFR) will be overseen by Worlds End president Sandy Roberton and Universal Republic evp of A&R Tom Mackay, who, along with Twenty First Artists CEO Colin Lester, conceived of the joint venture idea and brought it to Monte Lipman, President & CEO of Universal Republic, home to Amy Winehouse and Florence + the Machine.

“In a business where we need to continue to be innovative, take chances and search for other opportunities, it’s a great strategic alliance,” says Lipman. “If you go back in time, with every great album, you can usually cite a great producer that was associated with it. So the value of the producer is as strong as ever.”

Indeed, the new entity, which is part of a global initiative laid out by new UMG chairman Lucian Grainge, is very much a reflection of the times. “The music industry is predominantly pop-driven, it’s just where we are musically for the moment,” says Mackay. And with producers increasingly sharing in credits beyond mechanicals and points, another revenue stream that’s directly tied to their artists’ commercial success seems to make sense.

“In a lot of cases these days, producers are getting song credits,” says Lipman. “We have one now with Enrique Inglesias featuring Frank E, who is also the producer of the song. Frank showed up with the track, he did the production and Enrique thought it was only fair to give him that credit.” But Lipman cautions that the new company is not just a money grab. “It’s good for both of us — it’s about the strategy and it’s about offering more opportunities to these producers.”

Before you cry conflict, this is what Mackay had to say about the possibility of artists feeling pressured or influenced to work with producers on the TFR roster: “In all my years of doing this, I’ve never forced or made an artist work with somebody that they didn’t choose themselves.”

Lipman seconds that notion. “At Universal Republic, we empower the artist and ultimately they make the final creative decisions, and that’s something that we feel very strong about. The same applies here. We support these creative people we give them opportunity.”

Adds Lester: “We are in the business of ultimately selling records and are not going to jeopardize that just to make commission from a production. That would be very shortsighted and it’s certainly not what TFR is about. We are about developing long-term careers as we are with artists.”

So what is the end goal for TFR? Banking on the music fans of tomorrow, of course. “It makes perfect sense for us to work with contemporary producers as well as help develop the next generation who will produce the music of the future,” says Lester.

TFR will have offices in New York and Los Angeles.

 A Q&A with the Principals of Twenty First Republic:

The Hollywood Reporter: Why delve into the producer management business?

Tom Mackay: The answer is Sandy Roberton. He is a complete icon who’s been at the forefront managing some of the biggest producers in the business going on 30 years. And when Colin [Lester] and I came up with the idea of creating this venture, I thought about everyone that I deal with on a day-to-day basis; and who’s the best, hardest-working, most tenacious producer manager out there? That’s Sandy Roberton. One minute he’s at South By Southwest until four in the morning meeting people and pounding the pavement, then the next thing you know, he’ll be in Australia seeing bands and meeting with A&R guys there.

Colin Lester: It was simply based on the fact that Universal is one of the leading music companies in the world. In as much as they would be involved in making records and working with producers in developing these artists, they work to make the records great. Adding this business is a natural growth.

THR: If the core of a record company is to find artists, nurture them, and to bring music to the market place, how does this fit in?

Monte Lipman: The success of an A&R department in this culture is determined by the intimate relationship you have with the best producers that are out there. I think one of the reasons for starting this venture within Universal Music Group is to look for any way possible where we can to enhance that intimacy between UMG and the best producers and engineers that are out in the business.

Lester: Today synergy is very important, and the role of the record company is expanding, it’s changed, it’s not just to develop artists making records.

THR: So it this a reaction to the times and the fact that producers are almost at equal billing with the artists when it comes to pop songs in the Top 40?

Lipman: On a much broader level, the core of our business is based on the entrepreneurial spirit, and that’s what a lot of this is. It’s just a strategic alliance because these producers still have the opportunities to work with other artists outside of Universal. The idea is that it’s not just exclusive to the group but it’s an alliance that gives them increased opportunity. It’s more power to them and us.

THR: Explain how the process will work….

Mackay: Normally what ends up happening is that Colin, Monte myself, and Sandy, we’ll sit down and talk about someone who is available or interested in management. And much like Monte has taught me to do on the record side of things, we don’t sign artists if we can’t make a difference for that artist, the same rules apply. We have a discussion about a producer or a mixing engineer, we talk about their work, their discography and how we can help and provide a good service to the client. If we are able to do the deal, then Sandy becomes their day-to-day person, pushing them to the world.

THR: What if someone is already on the TFR roster, does it become an enticement to pair that producer or engineer up with a Universal artist?

Mackay: The way that that goes, and this is something that I’ve done from day one at TFR, A&R guys and producer managers can’t pair anybody up with anybody. My process is: when it’s time to record, we listen to demos, think about who would be good, we come up with a short list of four or five people, we put them in front of the artist and ultimately the artist makes that decision. The process is going to be no different. We’re not putting one in front of the other. As I say to the clients that we manage, “I can’t guarantee you work, we can guarantee you access….” It’s not like we’re going to play favorites and shove one of our clients down the throat of one of our artists.

Lester: It’s important to recognize that there is an entrepreneurial spirit to management. We only make money when our clients make money. And from our point of view, it’s not just putting our clients in situations where they can earn money, we are looking to develop long-term relations and careers for our clients.

THR: So it’s also contributing to the bottom line…

Lipman: To be completely transparent, of course it is. But it’s not just a money grab… So much of what we do is participate in the management of an artist’s career. We’re constantly involved in the process of developing the artist, everything from song selection, producer selection, what they wear on stage, what they perform, etc. So it’s something that we’ve already been doing. Yes, we do want to get paid, but this is a good opportunity for all.

Lester: I was told recently by a producer that as long as you are in the control room during the song’s inception, you get a percentage of the song that’s being recorded.

THR: What’s your end goal for the company?

Lipman: For me it’s a combination of wanting to make the creative statement and impact on pop culture, but we are also in it for the commerce. It’s a good balance.

Mackay: We just want to do good work. We want to represent good, talented people, we want to be proud of our roster in this venture just as we’re proud of our roster at the record label. When they have success, we have success, and vice versa.

Hollywood Reporter – 29th March 2011

The deal means that Twenty First Republic will represent Worlds End clients, including Larry Klein, Nick Launay, Stephen Lipson, Tim Palmer, Atticus Ross, Peter Katis, George Drakoulias and Matthew Wilder.

In addition, World’s End CEO Sandy Roberton will oversee Twenty First Republic alongside Tom Mackay, who will also continue as EVP of A&R for Universal Republic. Twenty First Republic will have offices in New York and Los Angeles.

Universal Republic president and CEO Monte Lipman said, “Through Twenty First Republic, we will be tapping into music and the creative process in its purest form, while leveraging the resources of our company to find production talent and extend their reach in the marketplace.”

Twenty-First Artists CEO Colin Lester, who first spoke of Twenty First Republic at Midem in January, said, “This is an exciting new venture and a watershed moment for Twenty First Artists. It opens up a myriad of opportunities for our business.

“By combining the scale and reach of Universal Republic in the US with the management and brand development experience of Twenty First Artists, we are creating the preeminent leader in this fast-growing area of the business.”

Music Week – 30th March 2011

With offices in New York and Los Angeles, Twenty First Republic will be overseen by Sandy Roberton and Tom Mackay, who will also continue in his duties as Executive Vice President of A&R for Universal Republic. The company will combine the creative resources of Universal Republic and the management experience of Twenty First Artists to discover, nurture and develop the careers of music producers and engineers. Twenty First Republic will seek to facilitate new revenue-generating business while creating cross-marketing and promotional opportunities for its clients.

“As we continue to expand our business, we are going from strength to strength with Colin through this innovative venture,” Lipman said. “Through Twenty First Republic, we will be tapping into music and the creative process in its purest form, while leveraging the resources of our company to find production talent and extend their reach in the marketplace.”

“This is an exciting new venture and a watershed moment for Twenty First Artists,” Lester said. “It opens up a myriad of opportunities for our business. By combining the scale and reach of Universal Republic in the US with the management and brand development experience of Twenty First Artists, we are creating the preeminent leader in this fast-growing area of the business.”

In its first venture, Twenty First Republic will handle clients from Worlds End Management, while its principal Sandy Roberton will operate TFR on a day-to-day basis. Worlds End clients now being represented by Twenty First Republic include Larry Klein, Nick Launay, Stephen Lipson, Tim Palmer, Atticus Ross, Peter Katis, George Drakoulias and Matthew Wilder.

Billboard – 30th March 2011

Twenty First Artists boss Colin Lester told reporters: “This is an exciting new venture and a watershed moment for Twenty First Artists. It opens up myriad opportunities for our business. By combining the scale and reach of Universal Republic in the US with the management and brand development experience of Twenty First Artists, we are creating the preeminent leader in this fast-growing area of the business”.

 Universal Republic big cheese Monte Lipman added: “As we continue to expand our business, we are going from strength to strength with Colin through this innovative venture. Through Twenty First Republic, we will be tapping into music and the creative process in its purest form, while leveraging the resources of our company to find production talent and extend their reach in the marketplace”.

CMU Daily - 30th March 2011

Colin Lester has managed a host of UK and overseas artists that have sold a huge amount of records, Arctic Monkeys, Travis and Remi Nicole amongst the roster however his 10+ year relationship and track record with Craig David is undoubtedly the most successful which Lester states is down to the ‘Honesty’ between the pair. ‘I didn’t expect two years down the line we’d be making records let alone 10 years. The expectation is this business
is very fickle. So at the time as much as I would have hoped to, I remember telling his Mum that I will do everything in my power to make your son successful and I promise as a company we will do our all. And that’s all you can do, promise to give your all. To be honest though, I thought he was an incredibly good artist that would sell records but 10 years down the line, no.’

Colin Lester Management (CLM Entertainment) are still responsible for Craig David up to this date and much of the credit for a career spanning over a decade must go to the artist but widely the management
and the way they have taken care of their artist and his affairs. What is special about Colin Lester’s style of management is that he is a real businessman that has a broad understanding of music, what makes it relevant, what makes it likeable and ultimately what makes it sell. ‘The thing that keeps any artist relevant is the records they make.’
For a man that has been in the music industry for over 30 years, the well spoken Londoner has a knowledge of music that others can only envy. His career has seen him sell an abundance of records over three decades however he is adamant that the Music Industry has not changed as much as others claim. ‘The Music Industry, as much as others would like to tell you has changed actually hasn’t changed at all. And the reasoning behind that is very simple, A+B=C. A is a great song, B is radio, media, TV, press exposure etc and C=sales which is a hit. The only thing that has changed is the sales as the volume and the way people can access and buy Music has changed drastically but the basic equation has never changed. So ultimately you’ll be judged by the records you make, there is no other formula to go by because if your song is being played all over radio and TV then it will turn into a hit.’

The acts that Colin Lester has managed or still manages now have not been the typical one-hit wonder acts, they have all had sustainability and Lester points that this is because of a specific reason. ‘The key to any long term artist is the song, the song is the currency of our business. Therefore if you are a songwriter, it just so happens that you can write your own hits therefore it’s likely you will have a longer career than the artists that are potentially waiting for someone to write their next hit, so for me, song writing is always the number one thing that defines long term careers. Therefore the artists that will be around in ten years will be the ones that have ability to write global hits. And that is the important thing about Craig, he sells records in virtually every country in the world.’ A man of strong opinions, less bothered by smaller hindrances such as X Factor and other reality TV shows affecting his chances of finding talent, he is much more concerned about matters which affect his artists themselves, a credit to his loyalty and desire to constantly achieve the best for them. ‘What makes my job difficult these days is the illegal downloading. Which is strangely called file sharing which I cannot understand, as we are not sharing files, let’s be honest. Sharing is a word we were taught to respect as children so by using words like sharing children do not actually understand that they are stealing. The problem that we have in nurturing new talent, rather than the reality TV programmes causing problems is that the record labels have a lack of funds to invest into new talent due to the amount of money they continuously lose annually from people illegal stealing music. As an artist manager that is a very important issue for me personally. I get so upset and passionate about it as it is a real issue that not only affects my acts but also other artists.’
Lester acts as what is known as a ‘Visiting Fellow’ to Southampton Solent University where he lectures about the Music Industry. ‘It is interesting speaking to some of the students whom are on the managementcourse, as they find it difficult to see how one can make money due to this downloading issue. You have to be much more dynamic as an artist and as a manager in the industry nowadays to actually make money.

In terms of the other acts under CLM Entertainment, Remi Nicole is working on a new album, signed to Island Records, ‘She’s a great young artist and you’ll hear a lot more from her. She has a new single that will be out soon that is produced by Bless Beats which is a great record. You will also be hearing
from a new act I recently signed called The Alfonz, a band from Swindon, 18 year old guys who write great songs and recently done the Glastonbury BBC Radio 1 Introducing Stage.’
The motto for CLM Entertainment is ‘We will be defined by what artists we sign.’ Lester added, ‘I look for acts that write their own songs and can articulate their music in a positive manner.’ One thing that is certain from speaking to Mr Lester is his passion for music and also his passion to succeed and put his all into making his acts the best they can possibly be. In an era where glitz and glamour is favoured over long and hard grafts it is refreshing to see someone who has had a successful career that still promises to flourish, nurture and develop some of the finest talent the UK and International Music Scene has had the pleasure of being witness to.

Musicology Magazine – April 2010

Pink Floyd and Queen, bands that have been with EMI Music for about four decades, may head for the door, according to two people familiar with their talks, as concern mounts about the U.K. record label’s finances.

Pink Floyd, whose catalog includes such albums as ”Dark Side Of The Moon” and “The Wall,” and Queen, with its best- selling single “Bohemian Rhapsody,” have met with other major record labels about leaving, said the people, who spoke on condition of anonymity because the discussions are private.

Guy Hands, whose Terra Firma Capital Partners Ltd. bought EMI for 4 billion pounds ($6 billion) at the height of the buyout boom in 2007, has until June to convince the firm’s investors to inject new capital to keep EMI afloat. Without that funding, EMI may end up in the hands of creditor Citigroup Inc. and may merge with a rival, analysts said.

“This is how a company implodes,” said Claire Enders, a former EMI executive and the head of Enders Analysis Ltd., a London-based music and entertainment research firm. EMI rivals Universal Music Group, Sony Music Entertainment and Warner Music Group are likely courting the label’s top artists such as Lily Allen and Katy Perry, she said.

Adding to the turmoil, Hands is suing Citigroup, saying the bank tricked Terra Firma into buying EMI in 2007. In a letter to Hands, part of court documents filed Feb. 4 in New York, EMI Music Chief Executive Officer Elio Leoni-Sceti wrote that morale at the company has reached a low and that artists are questioning whether to stay.

Under Pressure

EMI is in talks with artists, “all of whom are questioning to some degree whether it is wise to continue a relationship with EMI,” Leoni-Sceti wrote in the Oct. 2 letter, saying their concerns were sparked by a Citigroup report on EMI’s prospects. Leoni-Sceti was named to the top job by Hands in July 2008 with no music industry experience.

Neil Bennett, a spokesman for London-based EMI, the world’s fourth-largest record company, declined to comment for this story.

Mark Fenwick, the manager for Pink Floyd, declined to discuss the contract with EMI. The group, which first signed with the label in 1967, last year sued EMI and Terra Firma for what it said were miscalculated royalty payments.

Jim Beach, the manager of Queen, declined to comment on plans for its EMI contract. Queen signed with EMI in 1972.

EMI’s management style since Hands took over sparked outbursts from several top artists, including Lily Allen and Joss Stone. Industry executives have accused Hands of running the label like a hedge fund rather than a creative shop.

Artistic Differences

Terra Firma’s acquisition of EMI Group Ltd. just weeks before the credit markets collapsed in 2007 was the firm’s largest. Hands started the firm in 2002 raising 2.1 billion euros ($2.9 billion) for investments such as the German rest- stop chain Autobahn Tank & Rast Holding GmbH.

Radiohead and the Rolling Stones abandoned EMI when Hands took over, and as contracts with Pink Floyd, Queen and Robbie WIlliams come up for renewal, EMI faces the prospect of one or all leaving.

EMI Grammy Award winner Joss Stone last month asked on her Web page, “What manager will want their band signed to a company which might not exist in its current form in a year’s time?”

“The mistake Hands made is basically coming into a business he didn’t fully understand,” said Colin Lester, who signed the Arctic Monkeys and Travis and manages Grammy Award- nominated Craig David. “It’s important to have relationships with artists and it’s not based on the same matrix as other businesses.”

Back to Warner?

EMI, home to the Beatles, last month posted a 1.5 billion- pound annual loss and said its liabilities exceeded assets by 408 million pounds as of March 31, 2009. Terra Firma has asked EMI for a new business plan and needs the approval of 75 percent of investors to put more capital in by end-June.

Speculation that Warner Music Group will bid for the U.K. music company has also heated up. Should EMI breach debt covenants, Citigroup could take control of the company and sell it to Warner Music. New York-based Warner Music made way for Hands to buy EMI after abandoning a takeover in July 2007. On Feb. 9, Warner Music Chief Executive Officer Edgar Bronfman JR. said regulatory hurdles shouldn’t prevent his company, the world’s third-largest record label, from buying EMI.

“The current expectation is that EMI will cease to be owned by Terra Firma and Citigroup will take it over and sell it Warner,” Enders said. Amanda Collins, a spokeswoman for Warner Music, declined to comment.

Lily Allen, Robbie Williams

To cut debt, EMI considered selling Abbey Road Studios, where the Beatles recorded most of their songs, only to withdraw the plan last month after a public outcry led to the site being put on a protected list by English Heritage.

“They could have a yard sale and sell the gold records off the wall, but I don’t think that’s going to solve the problem,” said Ted Cohen, a former senior vice president of EMI’s global digital operation.

For artists renegotiating contracts, the lure of a financially sound company such as Universal Music or Sony is obvious, said Jonathon Shalit, who manages Myleene Klass and Jamelia. “It doesn’t take a rocket scientist to figure out that you’d sign with a solid company.”

Lily Allen early last year told The Word magazine she “hated” Terra Firma. “They don’t know how to run a creative business. They are killing us, frankly.”

Robbie Williams’s manager, Tim Clark, who two years ago said Hands behaved like a “plantation owner,” has changed his tune, telling Music Week magazine in February that EMI “really got a grip with things” on its operational side. Clark didn’t respond to messages seeking comment.

‘Period of Flux’

EMI has had some victories. Lady Antebellum, a country band signed to EMI, was this year’s first to sell a million albums in the U.S., according to Nielsen SoundScan. It was the fastest to cross the million-mark since 2005, SoundScan said. EMI has also had 200 new signings globally in the last 18 months, including Cypress Hill and American Voodoo.

Still, Scott Booker, manager of the Flaming Lips, said the cloud over Terra Firma and EMI does influence whether he would advise one of his acts to sign with the label.

“Would I sign to EMI right now? No,” said Booker, who also heads of the Academy of Contemporary Music at the University of Central Oklahoma. “I’d wait to see where the dust settles; there is going to be a period of flux over there. Why get in the middle of that? They just can’t afford to promote and market the same way they used to.”

Changing Hands

EMI’s challenges come against the backdrop of the music industry grappling with declining CD sales amid piracy and a shift in consumer preference for digital downloads. U.S. compact disc sales fell 65 percent from 2000 to 2009, according to SoundScan. Vivendi SA’s Universal Music Group, the world’s largest record label, reported revenue fell 6.2 percent last year to 4.36 billion euros.

EMI’s Leoni-Sceti has said the company’s revenue will rise in the current year, after gaining 4.6 percent in the 12 months ended in March 2009. Earnings before interest, taxes, depreciation and amortization more than tripled to 163 million pounds. EMI has said it sees earnings by that measure rising to 200 million pounds this year.

After buying EMI, Hands changed the management team. Former CEO Eric Nicoli left shortly after Hands bought the company. He was replaced by cleaning-products executive Leoni-Sceti, the former head of Europe for Reckitt Benckiser Plc.

‘EMI’s Heritage’

“Hands came with a clear statement of intent to do things differently,” said Mark Mulligan, a music industry analyst at Forrester Research Inc. in London. “Hands and Terra Firma’s principles are very sound and he made some very shrewd moves, but at the same time he reacted just as strongly on what he saw as excesses.”

Terra Firma in November offered to inject 1 billion pounds into EMI in return for a similar cut in the music company’s 2.5 billion-pound debt held by Citigroup, people with knowledge of the talks said then. Citigroup spurned the offer, saying it would have forced the bank to write off debt without getting equity in EMI.

“My hope is that EMI either gains strength by being able to borrow what it needs or merge with another label,” said Lester, the manager who signed Arctic Monkeys. “The heritage of EMI is important to the music industry.”