TIDMSONG
RNS Number : 8191O
Hipgnosis Songs Fund Limited
12 October 2021
12 October 2021
LEI: 213800XJIPNDVKXMOC11
Hipgnosis Songs Fund Limited
("Hipgnosis" or the "Company")
The Board of the Company notes that the following press release
has been issued by its Investment Adviser:-
Blackstone and Hipgnosis Song Management launch $1 billion
partnership to invest in
songs, recorded music, music IP and royalties
London (12 October 2021) Blackstone (NYSE: BX) and Hipgnosis
Song Management Ltd ("HSM") today announce a new partnership,
backed by funds managed by Blackstone, which will initially deliver
c.$1 billion to acquire music rights and manage catalogues.
Hipgnosis Song Management, founded by Merck Mercuriadis and
formerly known as The Family (Music) Ltd, is one of the industry's
leading advisory firms focused on music assets and is investment
advisor to Hipgnosis Songs Fund Ltd (LSE: SONG), the largest
UK-listed investor in music catalogues and royalties with gross
assets of c.$2.2 billion.
Merck Mercuriadis, CEO of Hipgnosis Song Management, said:
"Hipgnosis Song Management has firmly established songs as an asset
class. This new partnership with Blackstone will deliver financial
strength to invest in proven songs as well as grow our song
management team and bring additional sophistication to HSM,
enabling us to create greater value to our stakeholders including
our songwriters and shareholders in SONG. Given the strength of our
pipeline, we see the initial commitment as just the start of a
long-term partnership between Blackstone and Hipgnosis that will
also include co-investment with SONG."
Qasim Abbas, Senior Managing Director, Blackstone Tactical
Opportunities, said: "This partnership underscores the long term,
sustainable value we see in creative content across the wider
entertainment industry, building on Merck's vision and dynamism.
The music industry has been at the forefront of the fast-growing
streaming economy and is unlocking new ways of consuming content.
We look forward to working with Merck and his team to continue
their exciting journey and safeguard the legacy of the songwriters
that entrust us with their content."
As part of the partnership, Blackstone will take an ownership
stake in HSM and will support the expansion of its infrastructure
and business functions, including the development of new song
management expertise, data science capabilities and technology
solutions. This should allow HSM to further enhance the value of
the rights it purchases, working in close collaboration with
songwriters, artists and producers.
SONG is expected to benefit from Blackstone's investment in
HSM's management capabilities and will have the
right to co-invest in future catalogue acquisitions alongside the new Blackstone-HSM partnership.
Andrew Sutch, Chairman of SONG said: "Our Investment Adviser,
Hipgnosis Song Management's, new partnership with Blackstone
highlights how successfully Merck has established songs and music
rights as an asset class since founding and listing SONG three
years ago. This new partnership will provide new co-investment
opportunities for SONG, and we expect that continued investment in
Hipgnosis Song Management will enhance returns for our
investors."
Blackstone was advised on the transaction by Goldman Sachs, FTI,
Kirkland & Ellis and Deloitte. Hipgnosis Song Management was
advised by RBC, Capstan Capital Partners and Stephenson
Harwood.
Contact
Blackstone
Giles Croot giles.croot@blackstone.com +44 7881 749614
Felix Lettau felix.lettau@blackstone.com +44 7587 020 020
Teneo
Nick Claydon Nick.Claydon@teneo.com +44 7974 982547
Tim Burt Tim.Burt@teneo.com +44 7583 413254
About Blackstone
Blackstone is the world's largest alternative asset manager. We
seek to create positive economic impact and long-term value for our
investors, the companies we invest in, and the communities in which
we work. We do this by using extraordinary people and flexible
capital to help companies solve problems. Our $684 billion in
assets under management include investment vehicles focused on
private equity, real estate, public debt and equity, life sciences,
growth equity, opportunistic, non-investment grade credit, real
assets, and secondary funds, all on a global basis. Further
information is available at www.blackstone.com. Follow Blackstone
on Twitter@Blackstone.
About Hipgnosis Song Management Ltd
Hipgnosis Song Management Ltd, formerly The Family (Music) Ltd
is the Investment Advisor for Hipgnosis Songs Fund Ltd (SONG). Both
were founded by Merck Mercuriadis, former manager of globally
successful recording artists, such as Elton John, Guns N' Roses,
Morrissey, Iron Maiden and Beyoncé, and hit songwriters such as
Diane Warren, Justin Tranter and The-Dream. The Investment Adviser
has assembled an Advisory Board of highly successful music industry
experts which include award winning members of the artist,
songwriter, publishing, legal, financial, recorded music and music
management communities, all with in-depth knowledge of music
publishing. Members of Hipgnosis Song Management Ltd Advisory Board
include Nile Rodgers, The-Dream, Giorgio Tuinfort, Starrah, David
A. Stewart, Poo Bear, Bill Leibowitz, Ian Montone and Rodney
Jerkins.
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