Founded during the 1980s by Peter Baumann and specialised in instrumental music of a style popularly referred to as new age. Artists signed to the label included Jerry Goodman and Baumann's former band Tangerine Dream.

The label was eventually sold to BMG. Private Music remains a subsidiary record label of BMG, though most of its current back catalogue releases are compilation albums by Yanni and Patrick O'Hearn under the Windham Hill Records banner.