Until June 2007, the largest independent record label in the UK and the largest music management company in the world, looking after around 120 acts. It was also the world's largest independent owner of music intellectual property rights, with over 150,000 songs.

The company was formed in 1976 by Rod Smallwood and Andy Taylor, who had first met as undergraduates at Trinity College, Cambridge. In 1979, they discovered and then managed the heavy metal group Iron Maiden and named the record company after the song Sanctuary, which can be found on Iron Maiden's self titled debut album.

Sanctuary purchased an urban music company in the US in 2003, but this proved disastrous and the US urban division was ended when the company was restructured in 2006. In late 2006, Smallwood left the company, taking with him Iron Maiden's management interests.

In April 2007, it was reported that Sanctuary Records would cease to exist as a new release label in the US, although catalogue, licensing and new media operations would continue. In October 2007, the record company was absorbed by Universal Music Group.

By December 2007, it appeared that the Sanctuary name had begun to disappear, with both Morrissey and Robert Plant being transferred to the Universal-owned Decca Music Group for future releases.