Blackstone Officially Announces $1B Investment in Music Assets With Hipgnosis
Mercuriadis said the partnership “will deliver financial strength to invest in proven songs as well as grow our song management team and bring additional sophistication to HSM, enabling us to create greater value to our stakeholders including our songwriters and shareholders” in Hipgnosis Songs Fund. He added that he views Blackstone’s initial $1 billion commitment as “just the start” of a long-term partnership.
In his own statement, Qasim Abbas, senior managing director at Blackstone Tactical Opportunities, emphasized private equity’s increasing attraction to music assets, stating that the new partnership “underscores the long term, sustainable value we see in creative content across the wider entertainment industry.”
Sources previously told Billboard that Mercuriadis has been considering turning to private equity funding for months, as his fundraising from the stock market has fallen short of goals.
Blackstone was advised on the transaction by Goldman Sachs, FTI, Kirkland & Ellis and Deloitte. Hipgnosis Song Management was advised by RBC, Capstan Capital Partners and Stephenson Harwood.
Tuesday’s deal adds to Blackstone’s growing portfolio of music assets. In addition to MNRK Music Group (formerly eOne Music), which it acquired in April, it also owns the SESAC family of companies, including the Harry Fox Agency and Audiam.
With gross assets of $2.2 billion, Hipgnosis Songs Fund’s lucrative portfolio includes works by Neil Young, Al Jackson Jr., The B-52’s, Blondie, Journey, Lindsey Buckingham, Steve Winwood and Tricky Stewart, among many others.