LONDON (CelebrityAccess) – Blackstone, one of the world’s largest private equity management firms, has confirmed it plans to invest $1bn USD to acquire music rights through a partnership with Hipgnosis founder Merck Mercuriadis.
The investment, first reported by Music Business Worldwide, will be made into Hipgnosis Songs Capital, a new entity separate from Mercuriadis’ existing Hipgnosis Songs Fund.
As well, Blackstone will invest an undisclosed amount into Hipgnosis Songs Fund, assisting the music IP investment vehicle in acquiring new catalog, MBW reported.
“At this point in time what we’re looking to do – as a starting point, really – is acquire about a billion dollars of catalogs. I would emphasize that’s just the start. Our ambition is much more substantial than that,” Qasim Abbas, Senior Managing Director, Blackstone Tactical Opportunities said in an interview with MBW.
Along with the investment in IP acquisition, Blackstone also indicated that it plans to help underwrite an expansion of technological capabilities at Hipgnosis, including song management and analytics, MBW said.
“This partnership underscores the long term, sustainable value we see in creative content across the wider entertainment industry, building on Merck’s vision and dynamism. The music industry has been at the forefront of the fast-growing streaming economy and is unlocking new ways of consuming content,” Abbas added. “We look forward to working with Merck and his team to continue their exciting journey and safeguard the legacy of the songwriters that entrust us with their content.”