Music Catalog Fund Hipgnosis Sells to Blackstone for $1.6B USD
The fund owns catalogs from Justin Bieber, Shakira, Leonard Cohen and more.
Private equity firm Blackstone has bought Hipgnosis for $1.6 billion USD. The firm now owns the entirety of the publicly traded music catalog fund, also known as Hipgnosis Songs Fund (HSF).
HSF is the owner of music catalogs and intellectual property rights from Justin Bieber, Shakira, Blondie, Neil Young, Justin Timberlake, The Red Hot Chili Peppers and Leonard Cohen.
Hipgnosis was founded in 2018 by musician and producer Nile Rodgers and Merck Mercuriadis, who previously managed Beyoncé and Elton John. In 2021, Blackstone invested $1 billion USD into Hipgnosis Song Management, an arm of the company that advises the investments made by HSF.
As part of the deal, Mercuriadis will step down as CEO of Hipgnosis after six years in the role upon the acquisition’s closing. Earlier this year, a third-party review of Hipgnosis’ finances accused Mercuriadis of overstating the fund’s revenue, though the company disputed aspects of the report.
“This is a timely opportunity for me to undertake a strategic shift of focus, and to spend more time advocating on behalf of songwriters to ensure that they are properly compensated for their work,” Mercuriadis said in a statement.
The Hipgnosis-Blackstone deal highlights the growing market for music rights, as an increasing pool of major artists sell off their catalogs.
