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Hipgnosis Song Portfolio of Song Catalogs Valued at $2.7 Billion

Hipgnosis Song Portfolio of Song Catalogs Valued at $2.7 Billion

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LONDON (CelebrityAccess) – Hipgnosis’ big spending on song catalogs has been valued at approximately $2.7 billion. In the latest set of annual results for Hipgnosis Songs Fund up to March 31, 2022, the portfolio increased to $2.69 billion with a 9.5% like-for-like uplift in value.

Hipgnosis now has 146 catalogs comprising 65,413 songs. The investment firm acquired eight catalogs during the trading period, including Red Hot Chili Peppers, Christine McVie of Fleetwood Mac, Ann Wilson of Heart, Rhett Akins, and Stefan and Jordan Johnson.

Gross revenue increased by 24.7% to $200.4 million, partly due to the catalog acquisitions during the period. Hipgnosis is forecasting an increase in expected revenues due from emerging technology platforms as revenues start to be paid to publishers and record companies.

There was a 20% increase in sync licenses approved in the six months to 31 March 2022 compared to the first half of the financial year.

Merck Mercuriadis, CEO and founder of Hipgnosis Song Management and founder of Hipgnosis Songs Fund, said: “Over the last four years, we have acquired an incomparable portfolio of some of the most successful and culturally important songs of all time, now valued at $2.7 billion. The unique strength of our catalog is demonstrated by the 9.9% increase in the operative NAV to $1.8491 per share, as reported by our independent portfolio valuer, and a total NAV return of 14.2%. This is largely driven by our iconic songs outstripping the general market growth in streaming, particularly in the second half of 2021, providing validation for our investment strategy.”

Hipgnosis has also signed a direct administration agreement with SACEM, which will reduce third-party administration and collection fees, and the length of time it takes to collect digital revenues.

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