London Stock Exchange welcomes Hipgnosis songs fund limited to the Specialist Fund Segment

London Stock Exchange today welcomed Hipgnosis Songs Fund Limited to trading on the Specialist Fund Segment of the Main Market.

Founded by Merck Mercuriadis, Hipgnosis Songs Fund is the only fund listed on the London Stock Exchange that offers investors pure-play exposure to Songs and associated music IP rights and has raised over £200m in an oversubscribed fundraising. 

Hipgnosis Songs Fund will take advantage of a unique market opportunity as technology disruption is changing the way music is consumed. The pace at which revenues from music streaming replace and increase those earned from physical and permanent download sales is forecast to grow significantly. This is driven in large measures by music consumers switching from illegal downloading to convenient and legal streaming, which is resulting in improved monetisation of music.

Hipgnosis Songs Fund is advised by The Family (Music) Limited which was founded by Merck Mercuriadis, former manager of globally successful recording artists, such as Elton John, Guns N’ Roses, Morrissey and Iron Maiden, and hit songwriters such as Diane Warren, Justin Tranter and The-Dream, and former CEO of The Sanctuary Group plc. Merck is supported by an Advisory Board of highly successful music industry experts which include award winning members of the artist, songwriter, publishing, legal, financial, recorded music and music management communities, all with in-depth knowledge of music publishing including Nile Rodgers, Terius “The Dream” Nash, Bill Leibowitz, Ian Montone, and Jason Flom.

Merck Mercuriadis, Founder and CEO of The Family (Music) Limited, said:

“I believe the song, even more so than the artist, is the most important component in a hit recording. The music industry has been built on the predictable, reliable and enduring income they provide and now thanks to the systemic change in the way music is consumed via streaming the pie is growing rapidly. I’m delighted that the financial community is supporting our thesis that the proven hit songs we are targeting for acquisition are very investable assets and I look forward to updating the market on the progress of acquisitions soon. 
I’ve spent the better part of the last 35 years advocating for great artists, songwriters and producers and my ambition is to grow our fund not only to provide great returns for our investors but equally well in due course to create the leverage that only critical mass can provide to change the songwriters position in the economic model.”

Andrew Sutch, Chairman of Hipgnosis Songs Fund Limited, said:

“I'm delighted that the Hipgnosis Songs Fund launch has been so well-supported by investors, Hipgnosis will now be the first fund listed on the London Stock Exchange that offers investors pure-play exposure to Songs and associated music IP rights. 
On behalf of the Board, we are excited to work with Merck and the rest of The Family (Music) Limited as they look to utilise their extensive industry experience and relationships to identify, acquire and manage Songs.”
N+1 Singer acted as financial adviser and bookrunner and Herbert Smith Freehills as legal counsel.

Quick facts

Track
Market: Main Market
Instrument market cap (£m)
1,313.89
Listing/Admission to trading
11 Jul 2018
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