After weeks of whispers and hints that multiple market visits from Jeff Warshaw signaled a deal was all but done, Cinco de Mayo brought the official news that his Connoisseur Media will be acquiring Alpha Media.
Financing for the transaction is being provided by Brigade Capital Management. What’s the story with that operation? It’s a safe bet it is not as controversial as the entity that holds majority interest in radio industry peer Audacy Inc.
With a focused approach and diverse strategies, Brigade is a 19-year-old investment adviser and alternative asset manager focused on credit. It was founded by Donald E. Morgan III, who serves as Chief Investment Officer and Managing Partner.
Morgan also happens to serve as Portfolio Manager for Liquid and Alternative Credit strategies, and serves as a member of the Investment, Operating, Risk and Pricing Committees. Also on the Investment committee is Jenny Y. Lee, co-head of private credit. Prior to joining Brigade in 2022, Lee was widely known as the co-head of JPMorgan’s Leveraged Capital Markets Group. At JPMorgan, Lee focused on the Healthcare, Automotive, and Consumer industries, as well as Financial Sponsor clients. Lee was also the Co-Head of JPMorgan’s US Debt Capital Markets Diversity, Equity and Inclusion Committee.
Prior to forming Brigade in 2006, Mr. Morgan was a Senior Managing Director and Co-Head of Fixed Income at MacKay Shields LLC. At the same time, Morgan grew the firm’s high yield assets to $17 billion and raised approximately $800 million in the long/short fund. Morgan joined his predecessor firm in 1997 and co-managed its high yield funds until 2000, when he became the Lead Portfolio Manager of the High Yield Division.
Morgan began his career in money management as a Research Associate, then High Yield Analyst, at Fidelity Management and Research Company.
“Brigade offers a broad range of investments across the credit spectrum,” the company says. “Investors can access our credit strategies through commingled funds or separately managed accounts.”
For those who have closely monitored the U.S. radio broadcasting industry, Brigade is a name they may be familiar with. In a major move conducted in June 2020, Brigade Capital Management‘s Cayman Islands-based leveraged capital structures fund sold off all of its shares in Urban One. It was a $3,000,879 payout for Brigade, as the sale price was $0.762 per share.
In July 2018, Brigade engaged in a rapid acquisition of Cumulus Media shares before becoming a full-fledged member of the “Ad-Hoc Cross-Holder Committee” — the group comprised of holders of $2.025 million in term loans and 7.75% senior notes due May 2019 that objected to Cumulus’ restructuring plan. As of February 2020, Brigade’s stake in Cumulus comprised 1,977,012 shares, representing 12.7% of the company’s stock. It had been the No. 2 holder of shares as of Sept. 29, 2019, with 15.21% of the company’s stock, or 2,366,939 shares. Today, Brigade, if it is a holder of Cumulus shares, would have less than 0.58% equity interest, based on data reported at the end of 2024 by the company.
Then, there is iHeartMedia, the nation’s No. 1 owner of radio stations. In mid-2020 the largest stake in iHeartMedia was held by Brigade Capital, which on June 8 filed a Form SC 13G with the SEC noting it holds 5.01% of Class A iHeart shares. This gave Brigade shared dispositive power of 3,009,259 shares. Brigade on September 30, 2019 reported holding $20.5 million worth of IHRT stock. Today it is not among the top 10 investors in iHeartMedia.
But, Brigade is actively engaged in a business transaction involving Beasley Media Group.
On February 11, 2025, Brigade invested in Beasley for 11.00% Senior Secured First Lien Notes due 2028, which were issued on October 8, 2024. Proceeds from these “New Notes” were used to fund a portion of a cash offer to purchase up to $68 million of Beasley’s existing 8.625% Senior Secured Notes due 2026, effectively giving it the opportunity to swap old debt for new debt.
While Connoisseur marks another in a string of high-profile radio station ownership groups, Brigade’s funding is highly diversified. In May 2024, it acted as sole lender and agent on a new senior secured credit facility to NPX One to finance its acquisition by Breck Partners and pay related fees and expenses. Headquartered in Reading, Pa., NPX is a supplier of polystyrene trays.
