Innovative Guernsey songs fund beats £100 million fundraising target

18 April 2019

The Hipgnosis Songs Fund, one of the highest-profile alternative investment funds domiciled in Guernsey, has beaten its second fundraising target.

Hipgnosis Songs Fund is a Guernsey-registered fund investing in songs and musical intellectual property rights trading on the Specialist Fund Segment of the London Stock Exchange (LSE). It was founded by Merck Mercuriadis, the former manager of Beyoncé, Elton John, Morrissey, Iron Maiden and Guns N’ Roses.

It raised more than £200 million with its initial fundraising in July 2018, and announced a second placing on 12 April, with a target of £100 million to acquire more music catalogues. The placing was oversubscribed in record time and attracted approximately £141.5 million.

Merck Mercuriadis, Founder of The Family (Music) Ltd, said: “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.

“Having raised over £140 million today and almost £350 million since the IPO, I am delighted that we have this tremendous early support from best-in-class investors as this is not only a vote of confidence in Hipgnosis, it’s an acknowledgement of the power of hit songs all over the world.

“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.”

"I am delighted that we have this tremendous early support from best-in-class investors as this is not only a vote of confidence in Hipgnosis, it’s an acknowledgement of the power of hit songs all over the world."
Merck Mercuriadis, Founder of The Family (Music) Ltd

Estera, a leading global provider of funds, corporate and trust services and one of the leading fund administrators in Guernsey, has supported the manager and fund since launch.

Mariana Enevoldsen, Director, Estera International Fund Managers (Guernsey), said:

“As the first-ever LSE music royalty fund, Hipgnosis Songs was incredibly innovative, and it continues to break new ground with this stellar fundraise. We are thrilled to continue to support the investment adviser and the fund as they move forward, proving the power of music investment.” 

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