Under the deal, Blackstone will take an ownership stake in Hipgnosis Song Management and support its expansion.
Following reports last week that investment firm Blackstone was entering a new $1 billion partnership with Merck Mercuriadis, the companies made an official announcement on Tuesday (Oct. 12) announcing the deal.
Through the new partnership, funds managed by Blackstone will contribute $1 billion to acquire music rights and manage catalogs in tandem with Hipgnosis Song Management (HSM), formerly known as The Family (Music) -- the investment advisor to the publicly-traded Hipgnosis Songs Fund, which Mercuriadis founded and for which he also offers up music assets for the fund to buy. Under the deal, Blackstone will take an ownership stake in HSM and support the expansion of the company’s infrastructure and business functions, “including the development of new song management expertise, data science capabilities and technology solutions,” according to a press release. In addition, Hipgnosis Songs Fund will have the right to co-invest in future catalog acquisitions alongside Blackstone and HSM.