Hipgnosis Songs Fund wants to buy more songs for its fund, but to do that it’s going to have to raise more money. And so it is: the publicly listed company is going to be selling £150m (around $211m) worth of shares to fuel its next round of catalogue acquisitions.
Hipgnosis said it plans to use the funds “to acquire a substantial pipeline of songs”, with founder Merck Mercuriadis pitching the sale as giving “our public markets investors, historic and new, the only chance for the next 12 months to get access to Hipgnosis’ existing portfolio as well as a pipeline comprising some of the most important and successful songs of all time, at valuations that are highly attractive considering the continued explosive growth of streaming that will magnify future revenues considerably”.
The news follows the announcement earlier this week that Vania Schlogel has joined the Hipgnosis board as a non-executive director. She is the former chief investment officer at Roc Nation, and current chairwoman of Epidemic Sound.