They told us late last week that big news was coming along – soon private equity will own all the music as well…it’s just the start
MBW report
No doubt about it – this is blockbuster news.
Blackstone, one of the world’s most powerful financial players, has confirmed that it is investing around $1 billion to acquire music rights via a partnership with Merck Mercuriadis.
MBW has confirmed that this money will be poured into a new private fund, Hipgnosis Songs Capital.
Hipgnosis Songs Capital is a separate entity to the Mercuriadis-led Hipgnosis Songs Fund (SONG), which trades on the London Stock Exchange and has invested around $2 billion in music rights to date.
Hipgnosis Song Management will therefore become the exclusive investment management partner for both Hipgnosis Songs Fund and the Blackstone-backed Hipgnosis Songs Capital.
Blackstone’s billion dollar-investment is a game-changer for the music industry… but don’t expect its bankrolling to stop there. The company is ready to invest more vast sums in music rights – perhaps multiple billons more – via Hipgnosis Songs Capital in the years ahead.
Qasim Abbas, Senior Managing Director, Blackstone Tactical Opportunities, has led the new partnership deal with Mercuriadis.
Speaking to MBW in an exclusive interview, Abbas told us: “At this point in time what we’re looking to do – as a starting point, really – is acquire about a billion dollars’ [worth] of catalogs. I would emphasize that’s just the start. Our ambition is much more substantial than that.”
