Hipgnosis Songs Fund hit a major milestone in its native UK last month with its market cap soaring above GBP £1 billion for the first time – just over two years after going public on the London Stock Exchange.
Today (September 24), the aggressively acquisitive company, founded by CEO Merck Mercuriadis (pictured), has hit another impressive financial landmark – raising more than £420m ($535m) in the past two months alone.
Following July’s news that Hipgnosis raised £236.4m ($299m) via the sale of a tranche of C class shares in the UK-based company, the firm revealed today that it has now added another £190m (approximately $242m) to its acquisition warchest.
The latest round of cash was raised this week via the placing of a tranche of new Ordinary Shares on the market on Monday (September 21) at a price of 116 pence ($2.94) per share.
In just 72 hours, the placing, which is now closed, resulted in gross proceeds of approximately £186.4m ($237m).
Further gross proceeds of £3.6m ($4.6m) were additionally raised via an offer made on the PrimaryBid platform of new Ordinary Shares at the issue price (to provide retail investors with an opportunity to participate in the equity fundraising alongside institutional investors).
Hipgnosis announced on Monday that it plans to use the new proceeds to buy approximately 50 catalogs for which its investment advisor The Family (Music) Limited has already “identified and secured exclusivity on”.
Included in those catalogs “are some of the most influential hit songs of each of the past six decades”.
“We have made a tremendous impact on the songwriting community through our acquisitions and by pushing the agenda to improve the songwriter’s position in the economic equation.”
Merck Mercuriadis, Hipgnosis
Merck Mercuriadis, Founder of Hipgnosis Songs Fund Limited and The Family (Music) Limited, said today: “To raise £190 million in 72 hours and £420 million in two months during a pandemic is the greatest endorsement from the investment community for Hipgnosis and proven songs as an asset class.
“The uncorrelated returns songs provide have been very important to our shareholders during these difficult times and have only reinforced the belief in our thesis which has now become reality.
Added Mercuriadis: “We have made a tremendous impact on the songwriting community through our acquisitions and by pushing the agenda to improve the songwriter’s position in the economic equation.
“This has helped make us the buyer and custodian of choice amongst songwriters who are constantly providing us with exciting opportunities for pipeline. We will carry on with the course we have set for the last two plus years that has made us a FTSE 250 company.
“We will deploy quickly in the finest songs, we will actively manage them better than before and provide our great investors with a strong return all the while pushing forward the agenda of the songwriter.”
UK-based Hipgnosis announced the double hire of respected music industry execs Ted Cockle and Amy Thomson, plus the acquisition of Los Angeles-based Big Deal Music Group.
There’s also been a run of acquisitions involving the catalogs of Blondie’s Debbie Harry and Chris Stein, Kanye West and Jay-Z producer No I.D., Wu Tang Clan’s Robert ‘RZA’ Diggs, Mötley Crüe’s Nikki Sixx, and Pretenders star Chrissie Hynde.Music Business Worldwide