Hipgnosis Songs Fund Limited Ipo

Hipgnosis songs fund limited ipo

Hipgnosis Songs Fund is a British Guernsey-registered music IP investment and song management company.

Hipgnosis songs fund limited ipo

Founded on the premise that hit songs are long-term predictable assets unaffected by economic cycles, which will increase in value as the worldwide music streaming market continues to grow,[1] Hipgnosis Songs Fund acquires proven songs and songwriter catalogs and actively manages them to drive synchronization revenues.[2][3]

Hipgnosis Songs Fund has raised nearly US$800 million to fund acquisitions since it was established in 2018.[4] In June 2019, at the close of its first full year as a publicly-traded company, its catalog totaled more than 5,000 songs; of those 5000, approximately 2000 were #1 hits, and 2,000 had hit the Top 10.[5] Five songs co-owned by Hipgnosis Songs Fund appeared in the Top 10 on Billboard's Hot 100 of the decade chart.[6]

History[edit]

Hipgnosis Songs Fund was founded by Merck Mercuriadis, who has managed artists including Elton John, Iron Maiden, Morrissey, Beyoncé, and Nile Rodgers.

Mercuriadis said in a February 2019 interview: "Nile (Rodgers) and I, one day, just started riffing off of these ideas of how do we change this system, how do change what’s going on today where the songwriter – who provides the most important component in an artist having success –  is the lowest person on the totem pole?" [7] Mercuriadis believed that a rights and song management company with substantial assets would have the leverage to change the existing economics of publishing for songwriters, and in 2018, with a strategy to build capital by offering investors pure-play exposure to songs and associated musical intellectual property rights in place, Hipgnosis Songs Fund was formally founded.[8] The company was named after Hipgnosis, the art and design group founded by Storm Thorgerson and Aubrey Powell.[9]

Hipgnosis Songs Fund went public in July, 2018; an earlier plan to float the company in the UK had been postponed to conduct further due diligence.[10] Its prospectus noted a "unique market opportunity as technology disruption is changing the way music is consumed." [11] At its July 10, 2018 launch on the British Stock Exchange, Hipgnosis Songs Fund raised $262 million, well over its goal.

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Trading as SONG, it was one of two investment trust IPOs that were oversubscribed that year.[12] Following the listing, the company reported that it had acquired a 75 percent interest in its first music rights catalog from musician The-Dream for $23.75 million. Among other hits, the 302-song collection included Justin Bieber's "Baby", Rihanna's "Umbrella" and Beyonce's "Single Ladies (Put a Ring on It)”.[13]

By the end of 2018—advised by The Family (Music) Limited, an advisory board that includes Mercuriadis, Rodgers, Starrah, The-Dream, David A.

Stewart, Nick Jarjour, Bill Leibowitz, Ian Montone, and Jason Flom—Hipgnosis had acquired the Poo Bear catalogue of 214 songs, including Justin Bieber's "What Do You Mean?" and the English language version of "Despacito"; a 37.5% stake in Chic co-founder Bernard Edwards' catalogue, which comprised 290 songs including "Everybody Dance", "Le Freak," "I Want Your Love" and "Good Times"; the 121-song catalogue of TMS, including "Don't Be So Hard On Yourself" for Jess Glynne, and "Wings" and "DNA" for Little Mix; and the 121-song catalogue of Tricky Stewart, who co-wrote many of The-Dream's hit songs, including "Me Against The Music" (by Britney Spears and Madonna), and Mariah Carey's "Touch My Body."[14] Prior to a second raise of $185 million in April 2019, Hipgnosis acquired the 182-song catalogue of Giorgio Tuinfort, including more than 15 UK Top 10 singles with David Guetta; Itaal Shur (209 songs, including "Smooth"), the 249-song catalogue of Johnta Austin, ("We Belong Together" by Mariah Carey, "Be Without You" by Mary J Blige); 588 songs by Sean Garrett, including "Yeah", Ciara's "Goodies, and "Check on It by Beyoncé; and the 245 song catalogue of Rico Love, including ""Without You" by David Guetta.[14][15] In October 2016, the company acquired Timbaland's catalogue, which included all six albums by Missy Elliot, and the five Justin Timberlake albums that Timbaland produced.[16] The catalog comprises 108 albums and songs with collective sales in excess of 32 million.[17] Five songs co-owned by Hipgnosis appeared in the Top 10 on Billboard's Hot 100 of the decade chart.

(The Chainsmokers ft. Halsey, "Closer", "Uptown Funk" by Mark Ronson, "Shape of You" by Ed Sheeran, Maroon 5 ft. Cardi B, "Girls Like You", and "Despacito" by Luis Fonsi & Daddy Yankee ft. Justin Beiber.)[18] In December 2019, Hipgnosis added the first four studio albums by Kaiser Chiefs,[19] and the songwriting catalogue of Jack Antonoff[20] to its repertoire.

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Hipgnosis raised $63 million in August 2019, and an additional $295 million in October,[21] bringing its "acquisition warchest" to nearly $800 million US.

As of October 2019, Hipgnosis Songs Fund holdings included more than 6000 songs, with hits from every decade since the 1950s, valued at $1.3 billion.[4] In November 2019 the company was admitted to the London Stock Exchange Premium Segment of the Official List on the completion of four equity fundraises since its' launch in June 2018.[22]

In January 2020, former blink-182 guitarist Tom DeLonge sold his publishing rights to Hipgnosis.[23]

Portfolio[edit]

[16][24]

References[edit]

External links[edit]

  1. ^"Hipgnosis: Sweet dreams are made of song royalties".

    Wealth Manager. Retrieved 2019-10-04.

  2. ^Harley-McKeown, Mischa Frankl-Duval and Lucy. "Investors in Search of Yield Turn to Music-Royalty Funds". WSJ. Retrieved 2019-10-01.
  3. ^"Business interview: Music man turning up the volume on the hit parade".

    Seykota on the forex

    Evening Standard. 2018-10-26. Retrieved 2019-10-01.

  4. ^ abAswad, Jem; Aswad, Jem (2019-10-17). "Hipgnosis Songs Raises Another $295 Million".

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    Variety. Retrieved 2019-10-18.

  5. ^Johnston, Chris (2019-06-17). "Going for a song: The £350m fund making money from pop hits".

    The Telegraph. ISSN 0307-1235. Retrieved 2019-10-03.

  6. ^https://www.musicbusinessworldwide.com/hipgnosis-buys-slices-of-shape-of-you-and-uptown-funk-as-it-generates
  7. ^"A Conversation with Nile Rodgers and Merck Mercuriadis".

    Thought Economics. 2019-02-27. Retrieved 2019-10-01.

  8. ^"Industry Bomb Thrower Merck Mercuriadis On Disrupting The Music Business [INTERVIEW]". hypebot. Retrieved 2019-10-04.
  9. ^Evans, Peter (2019-03-17). "Interview: Merck Mercuriadis, the man mining gold from old hits".

    Hipgnosis Songs Fund

    The Sunday Times. ISSN 0956-1382. Retrieved 2019-10-03.

  10. ^"Music veteran's Hipgnosis trust returns for second attempt at IPO".

    Hipgnosis songs fund limited ipo

    www.investmentweek.co.uk. 2018-06-27. Retrieved 2019-10-04.

  11. ^"Intention to Float - RNS - London Stock Exchange".

    www.londonstockexchange.com. Retrieved 2019-10-04.

  12. ^"Going for a song − the Hipgnosis Songs Fund". Master Investor. 2019-04-24. Retrieved 2019-10-04.
  13. ^Reid, David (2018-07-11).

    "Investment fund backed by song royalties signs up hits from major stars". CNBC.

    About Hipgnosis Songs // The Family Music

    Retrieved 2019-10-04.

  14. ^ ab"The facts and figures on the Hipgnosis publishing revolution". www.musicweek.com. Retrieved 2019-10-04.
  15. ^"Hipgnosis Songs Raises $185 Million to Acquire More Hits". Billboard.

    Hipgnosis songs fund limited ipo

    Retrieved 2019-10-04.

  16. ^ ab"Hipgnosis Acquires Timbaland Catalog". Billboard. Retrieved 2019-10-16.
  17. ^Aswad, Jem; Aswad, Jem (2019-10-16).

    Hipgnosis songs fund limited ipo

    "Hipgnosis Songs Acquires Timbaland Catalog". Variety. Retrieved 2019-10-16.

  18. ^"Hot 100 Songs : Page 1".

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    Billboard. Retrieved 2019-11-18.

  19. ^https://completemusicupdate.com/article/hipgnosis-acquires-kaiser-chiefs-master-rights
  20. ^https://www.billboard.com/articles/business/8546077/hipgnosis-jack-antonoff-catalog-publishing-writer-share-performance
  21. ^"Merck Mercuriadis' Hipgnosis raises another $295m".

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    Music Business Worldwide. 2019-10-17. Retrieved 2019-10-18.

  22. ^"London Stock Exchange admits Hipgnosis Songs Fund to Premium Segment of Official List".

    Music Business Worldwide.

    Placing of £141.5 million for Hipgnosis Songs Fund Ltd.

    2019-11-18. Retrieved 2019-11-18.

  23. ^https://www.billboard.com/articles/business/8547455/hipgnosis-tom-delonge-acquisition-blink-182-angels-airwaves
  24. ^"CATALOGUES".

    Hipgnosis Songs Fund Limited. Retrieved 2019-10-18.