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Digital Music Rights Market Attracts Asset Managers’ Curiosity
Blackstone (BX) is aiming to capitalize on the expansion in music streaming, teaming up with the advisory arm of Hipgnosis Songs Fund (HPGSF) to put money into music rights and catalogs. The asset administration agency is investing $1 billion within the effort. Hipgnosis is a music funding firm which buys artists’ songs catalogs and makes cash when songs are streamed on-line or utilized in commercials, TV reveals, and flicks.
Below the deal, the Hipgnosis fund will have the ability to co-invest with Blackstone on any music catalog offers. Blackstone will take a majority stake in Hipgnosis Tune Administration and can put money into the agency to enhance the info and tech it makes use of to handle music rights.
Hipgnosis Bets on Streaming
Hipgnosis was based in 2018 by Merck Mercuriadis, a former supervisor for large names together with Elton John and Beyoncé, and by Nile Rodgers, the co-founder of Stylish. Hipgnosis buys songs by the Hipgnosis Songs Fund. The corporate has inked music offers with Rihanna, Shakira, and Neil Younger. Since going public in 2018, Hipgnosis owns the rights to over 64,000 songs, 14,000 of that are top-10 hits. The corporate has gross property of round $2.2 billion.
Asset managers together with Blackstone see acquiring music rights as an enormous progress play. In any case, outdated songs can generate some huge cash by way of streaming platforms and on social media.
Asset Managers Circle
Blackstone will not be the one massive asset administration agency to make massive investments within the music trade. Apollo International Administration (APO) is backing HarbourView Fairness Companions, a agency gearing as much as buy music rights by way of a $1 billion funding. In the meantime, KKR & Co. (KKR) bought a majority stake in producer Ryan Tedder’s pop music catalog. The PE agency additionally inked a cope with the document label BMG.
With social media and streaming platforms taking off, massive asset administration corporations see a possibility to generate income off of music. It is going to be fascinating to see what these traders do subsequent.
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