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Hipgnosis raises a further £231 million

By | Published on Thursday 17 October 2019

Hipgnosis Songs Fund

Following the news yesterday that it has acquired the publishing catalogue of Timbaland, acquisitive music-centric investment outfit Hipgnosis Songs Fund has announced new financing of £231 million. This follows £51.1 million in August, meaning the music rights venture has raised over £625 million since its IPO last year.

The new funds have been raised by offering 231,000,000 shares to new and existing investors at £1 each. With applications made for all of them, they are expected to be added to the London Stock Exchange on 22 Oct.

“I am delighted by the strong response to this issue both from our existing shareholders and new investors”, says Hipgnosis founder Merck Mercuriadis. “Having raised £231 million today and over £625 million since our IPO a little over a year ago, Hipgnosis has been one of the biggest fund launches on the London market in recent times, with more capital raised over the last six months than any other London listed fund”.

He goes on: “This is a demonstration of the financial community recognising the true value of music and proven songs. They are the currency that makes the world go round. They are predictable and reliable and they are better than gold or oil. We have lined up the finest available song catalogues and will be deploying immediately”.

Hipgnosis aims to persuade investors to put their money into song rights, rather than more traditional investment portfolios. The company reckons that it can provide reliable and significant returns, while bringing in a new source of revenue to the music industry. Catalogues it currently owns include those of The-Dream, Benny Blanco, The Chainsmokers, Dave Stewart and Bernard Edwards.