Trio of leading Guernsey advisors support launch of industry-first music fund

11 July 2018

An industry-first Guernsey fund investing in songs and musical intellectual property rights has been admitted to the London Stock Exchange after raising £202.2 million.

The Hipgnosis Songs Fund Limited (Hipgnosis Songs) was set up by Merck Mercuriadis, the former manager of Beyonce, Elton John, Morrissey, Iron Maiden and Guns N’ Roses.

Three leading Guernsey advisors collaborated in the IPO of Hipgnosis Songs on the Specialist Fund Segment of the LSE. Fund administrator Estera International Fund Managers (Guernsey) Limited, law firm Ogier and PwC worked closely with investment adviser The Family (Music) Limited (TFM) on the launch of the first London-listed vehicle to offer an attractive and growing level of income and capital growth investing in music.

TFM, founded by Mr Mercuriadis, counts in its advisory board music industry veterans, and world-famous record producer, songwriter and musician Nile Rodgers.

"This is a new asset class for Guernsey and Hipgnosis Songs is a fantastic addition to the strong stable of LSE-listed closed-ended funds already domiciled in Guernsey. New promoters like TFM are exactly what Guernsey needs, and Hipgnosis Songs is a great reflection of how Guernsey can support fundraising internationally."
Ogier Partner and Head of Guernsey Investment Funds Craig Cordle

The Estera team was led by directors Mariana Enevoldsen and James Christie. Ogier acted as Guernsey legal counsel, led by Group Partner and Head of Guernsey Investment Funds Craig Cordle and Associate Charlotte Brown. The PwC team of reporting accountants included Stephanie Coxon and Jo Mauger.

Ms Enevoldsen said: “We have a long track-record in providing administrative services to innovative alternative investment funds. Supported by a highly-credible advisory team which is deeply embedded within the music industry, Hipgnosis Songs answers ongoing investor demand for increasing levels of income and capital growth from assets which are completely uncorrelated to other investments.”

Mr Cordle said: "Ogier is delighted to have worked together with TFM and local and international advisors to bring this innovative product to fruition. This is a new asset class for Guernsey and Hipgnosis Songs is a fantastic addition to the strong stable of LSE-listed closed-ended funds already domiciled in Guernsey. New promoters like TFM are exactly what Guernsey needs, and Hipgnosis Songs is a great reflection of how Guernsey can support fundraising internationally.”

PwC’s Ms Coxon added: “This is another great product for Guernsey. It demonstrates the jurisdiction continues to be popular and trusted by advisors and investors. It's also interesting to see promoters and advisors looking to create products that provide constant yields that are not necessarily correlated to other financial markets.”

N+1 Singer acted as financial adviser and bookrunner and Herbert Smith Freehills as UK legal advisors.

"This is another great product for Guernsey. It demonstrates the jurisdiction continues to be popular and trusted by advisors and investors."
PwC Director Stephanie Coxon