Guernsey-based pop music investment proves to be a hit

Pedro Gonçalves
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Guernsey-based pop music investment proves to be a hit

Hipgnosis Songs Fund, a Guernsey-registered fund that invests in music back catalogues has proven to be a hit with investors.

Set up by Merck Mercuriadis, the former manager of Beyoncé, Elton John, Morrissey, Iron Maiden and Guns N' Roses, was admitted to the London Stock Exchange in July last year after raising £202.2m.

It announced in April a placing with a target of £100m for the acquisition of further significant music catalogues. Owing to increased institutional demand from existing investors, the placing was oversubscribed in record time and attracted approximately £141.5m.

As the first-ever LSE music royalty fund, Hipgnosis Songs was incredibly innovative, and it continues to break new ground with this stellar fundraise"

Estera, a global provider of funds, corporate and trust services, has supported investment adviser The Family (Music) Limited since inception and has administered Hipgnosis Songs since launch.

"As the first-ever LSE music royalty fund, Hipgnosis Songs was incredibly innovative, and it continues to break new ground with this stellar fundraise," said Mariana Enevoldsen, director, Estera International Fund Managers (Guernsey).

"We are thrilled to continue to support the investment adviser and the fund as they move forward, proving the power of music investment."

Merck Mercuriadis, founder of The Family (Music) Limited, added: "Less than a year ago, we set out to demonstrate to the financial community that proven hit songs were as predictable and reliable, and therefore as investable, as gold or oil."

The scale of investment since launch was "not only a vote of confidence in Hipgnosis, it's an acknowledgement of the power of hit songs all over the world".

Mercuriadis added: "Thanks to streaming, the music industry, once again, has its best days in front of it and our aim is to highlight the fact that great songs, and their creators, are its most valuable currency while delivering a great return for our investors."

 

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