What happens when a private equity company takes over a music festival? For this Critical Listening live taping at the ESNS Conference in Groningen, we spoke with Dutch investigative journalist Henk Willem Smits to unpack this very question. Smits works with the community-supported outlet Follow the Money, specializing in tax avoidance by multinationals and wealthy individuals in music, and the intersections of private equity and electronic music culture. His 2025 piece "Loud Music, Silent Takeovers" specifically looked at the 1.3 billion euros spent by U.S.-based private equity firm KKR on music festivals in recent years.

In his reporting, Smits has found that after private equity buys festivals, they can be subject to higher ticket prices, more commercial partnerships, and homogenized lineups driven by Spotify and TikTok data—in order to "tailor lineups more precisely to audience demand," he wrote last year. "A lot of festivals, especially smaller dance festivals, don't have big margins," Smits told us. "It's a very small margin business. So what you see now is management layers getting fired... That is something that happens a lot, but that is not something the audience notices. What also happens is you see some festivals not being organized. Or they skip a year."

Below, see some more highlights from our conversation with Smits, which also covered his reporting on the connections between KKR and Israel, and how pop stars use the Netherlands as a tax haven.

How else do festivals change when they are acquired by private equity?
"They have to increase the margins because they paid a lot of money [for these festivals]... One financial analyst said that if they want to get that money back and also make a profit the [margin] has to raise with 10s of percents a year. That is very ambitious, very, very ambitious.... There is pressure here."

What has been the biggest takeaway from your festival reporting?
"There is logic to going up into a bigger structure. But when you sell your company, you really don't have anything to say about the ownership anymore... I heard from a manager in music and he said what he learned from the story was that you have to check the whole chain. So you have to check who is behind the festival, but also who's the owner of the festival, and who's the owner of the owner."

Are there any open questions for you, still, regarding the relationship between private equity and live music?
"I would love to speak to KKR. I would love to know if they regret buying Boiler Room. But they have a sort of policy that they don't talk with the press... which I find strange, because this is a company that has $600 billion of investments. But then you also have, of course, responsibilities. They invest in a company that rents out houses in occupied places in the West Bank. It would be interesting if they could explain, at least, why they think they have to do that. But it's a responsibility they take. They don't see themselves as part of society. They just have to make money."