https://www.telegraph.co.uk/business/2021/12/05/song-rights-pioneer-hipgnosis-faces-uphill-battle-keep-music/
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The press release from Blackstone is here, it includes most of the details: https://www.blackstone.com/press-releases/article/blackstone-and-hipgnosis-song-management-launch-1-billion-partnership-to-invest-in-songs-recorded-music-music-ip-and-royalties/
I’m not particularly worried, and it’s good that this is a big endorsement of the business model — it’s a huge amount of money, which is probably why it’s a separate investment managed by Mercuriadis’ group rather than just an investment in SONG, but SONG will have co-investment rights and will also get a Blackstone investment. That does create some conflict of interest in choosing which fund will get a particular songwriter’s portfolio in the future, though in practice I would bet that a lot of deals will be invested in by both, but it also funds a larger business operation in managing these songs effectively, which could be important as competitors scale up.
On balance, I think it’s mildly good news for SONG… but it’s not all sunshine and roses. This fund is very much tied up in Mercuriadis’ management and his ability to sell songwriters on the fact that Hipgnosis will be a good partner, and I don’t know how the Blackstone association could change that story.
Remember that SONG is really just a yield vehicle for getting a dividend on this alternative asset. If it grows meaningfully — and it probably can — it will likely be over an extended period of time. I have fairly low return assumptions with this one. I’m looking for stability, slow growth, and an asset value that’s not correlated with stocks to provide some diversification.