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Blackstone and Hipgnosis partner with $ 1 billion in music investment

Blackstone has taken a big step into the world of music rights with a boom in reputation and announcing a partnership with Hipgnosis Song Management, run by music tycoon Mercuriadis.

The private-equity group will invest $ 1 billion in a new fund run by HSM to purchase music rights, catalogs and royalties.

In addition, the Hipgnosis Songs Fund, which is listed on London, is operated individually. Buy at a fast pace, Snap songs from artists such as Blondie and Neil Young.

Blackstone’s new fund was created as private-equity groups doubled their music and the proliferation of streaming increased the value of old songs.

“This new partnership with Blackstone not only provides us with the financial strength to invest in proven songs, but also to grow our song management team,” said Mercuriadis, former Elton John manager. ..

He added that his company “firmly established the song as an asset class.”

Blackstone did not say whether it had a majority or minority stake in HSM, or at what valuation it was buying.

Music tycoon Mercuriadis is the UK’s largest investor in music catalogs and loyalty with the Hipgnosis Songs Fund © Matt Winkelmeyer / Getty / SXSW

Rival private equity firm Apollo said last week it launched HarborView, a new investment firm that spends $ 1 billion on music rights, and launched KKR in March. Teamed up with BMG, One of the largest music companies in the world, targeting large-scale acquisitions of labels and catalogs.

The Hipgnosis Songs Fund is the largest investor in UK-listed music catalogs and royalties with total assets of approximately $ 2.2 billion. The Blackstone contract gives you the right to co-invest in the music catalog with the new fund.

Blackstone’s investment in new cars is equity and debt, and comes from its tactical opportunity fund.

This year, Stiffel’s analysts concern There is very little financial information provided when a deal is closed as to how Hipgnosis evaluates the songs it has acquired.

Numis also said it would be difficult to assess Hipgnosis’s finances due to the lack of available information, but the company has since responded by raising the level of information it publishes regarding purchases.

Kasim Abbas, managing director of Blackstone’s Tactical Opportunity Division, said the private equity group saw “long-term, sustainable value” in what he called “creative content.”

The Hipgnosis Songs Fund’s share has risen 17% since its listing in 2018 and has risen 2% following the announcement of Blackstone.

Blackstone and Hipgnosis partner with $ 1 billion in music investment

Source link Blackstone and Hipgnosis partner with $ 1 billion in music investment

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