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Hipgnosis raises another $100 million
By Andy Malt | Published on Monday 8 February 2021
The Hipgnosis Songs Fund has secured yet more funding, with over $100 million more cash to spend on acquiring yet more lovely music catalogues.
And before you say, ‘that bubble’s going to burst’, company founder Merck Mercuriadis says that it’s all going very well thank you very much, so shut the fuck up you doom-sayers. Well he did put it exactly like that.
“2020 was a transformational year for Hipgnosis”, says Mercuriadis in a statement. “Against one of the most challenging economic backdrops of our lives, we raised more capital than any other listed investment fund, outperformed the FTSE 250 index by 21.5%, and paid a fully covered dividend of over five pence per share, which places us as the 35th highest dividend-yielding company on the FTSE 250”.
“Whilst we would not have wished for a pandemic to prove our thesis that music is a highly investable asset class generating uncorrelated returns, it has done exactly that. In just over two years from IPO to our latest results announcement as at 30 September 2020, we have generated a total NAV return of 37.9% for our shareholders, a 40.4% outperformance of the FTSE 250 over the same period”.
So, yeah, eat up those stats, people. And if you don’t know what the hell he’s talking about, well, you probably don’t need to. Saying that the company has begun 2021 with its “strongest start ever”, thanks to some big catalogue acquisitions, Mercuriadis adds that marketing and further fundraising will now be the key focusses for the rest of the year.
“We look forward to investing further into our pipeline of proven and culturally important songs and actively managing these incredible songs to enhance their legacy and maximise income as we seek to provide exceptional risk adjusted returns for shareholders”, he concludes.
