Merck Mercuriadis to step down as chair of Hipgnosis Song Management
Merck Mercuriadis is to step down as chair of Blackstone-owned Hipgnosis Song Management (HSM) as the private equity giant vies to acquire the music catalogue it manages.
HSM announced on Tuesday that Mercuriadis’ departure would be effective upon closing of the proposed acquisition of FTSE 250-listed Hipgnosis Songs Fund (HSF) by Blackstone.
Mercuriadis founded HSF in 2018 and created HSM to act as the company’s investment adviser. It claims to manage thousands of songs worth a total of roughly $3bn (£2.4bn) from artists including Shakira, Justin Timberlake, Neil Young and 50 Cent.
“As Hipgnosis Songs Fund enters the next phase of its development, now is the right time to
hand the reins to a trusted and highly capable team,” Mercuriadis commented. “I am excited about the company’s future and its ongoing success with the support of Blackstone.”
The former Beyonce and Elton John manager added that he wanted to spend more time backing songwriters over fair pay.
He said the “time to act is now” amid new laws being discussed around the world and before the next royalties rates are set in the US.
In June, Blackstone upped its offer for HSF by $0.01 to sweeten the deal for shareholders, having already received the backing of the firm’s board. Blackstone will need 75 per cent of voting shares to approve its deal at a meeting next Monday.
Mercuriadis previously stepped down as chief executive of HSM in February following tension between the company and HSF’s newly-appointed board.
In March, an independent valuer found that the trust’s adviser had inflated growth figures and overstated the value of its portfolio, leading to strong disagreements between the two parties over whether to accept the report.