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Hipgnosis Rebrands to Recognition Music Group, Signaling New Direction in Music Rights Investment
The company known as Hipgnosis, which holds rights to a vast array of songs from iconic artists like the Red Hot Chili Peppers, has officially rebranded itself as Recognition Music Group, as announced on March 12.
This name change represents the consolidation of three previously separate entities: Hipgnosis Songs Fund, a publicly traded investment fund specializing in music royalties that was formerly listed on the London Stock Exchange; Hipgnosis Songs Assets, a private royalty fund backed by Blackstone; and Hipgnosis Song Management, which was led by founder Merck Mercuriadis and managed investment returns from the song rights portfolio.
In light of recent developments, including Blackstone’s acquisition of Hipgnosis’s public fund for $1.47 billion and Mercuriadis’s departure as chair, the decision to rebrand seemed timely, according to CEO Ben Katovsky in an interview with Billboard.
Recognition Music Group boasts an impressive library of publishing and master recording rights, encompassing approximately 45,000 songs, including chart-toppers like Shakira’s “Whenever, Wherever,” The B-52s’ “Love Shack,” Fleetwood Mac’s “Go Your Own Way,” and Diana Ross’ “I’m Coming Out.” To herald the new identity, the company produced a video that creatively merges lyrics from its catalog to convey a message of unity and collaboration among the former Hipgnosis entities.
Katovsky expressed the significance of the new name, highlighting its dual meaning related to the recognizability of the songs and acknowledging the talents of the artists and songwriters behind them. “It’s impossible not to have those songs resonate in your mind,” he remarked from the company’s London headquarters.
Speaking on behalf of Blackstone, Qasim Abbas, head of tactical opportunities international, emphasized that last year demonstrated “strong investor conviction in this asset class,” underscoring the positive reception towards music rights investments.
Abbas further stated that Recognition Music is poised to enhance its role as a leading independent investor in music rights, owning and managing an impressive array of songs and recordings.
Hipgnosis gained acclaim between 2018 and 2021 for acquiring numerous music catalogs, which helped elevate the market for music royalties. In contrast, Recognition is poised to take a more measured approach as a “selective buyer” of music rights, as articulated by Katovsky.
“Our ambition is to grow our portfolio further, and we have already established significant business scale,” Katovsky noted, emphasizing that the current scale provides the flexibility to invest without the pressure to rush capital deployment.
The company’s portfolio remains predominantly focused on publishing rights, which account for about 80% of its assets, with the remainder largely consisting of master recording rights. Additionally, Blackstone continues to oversee Hipgnosis Songs Group, including Big Deal Music’s administration operations, which are under strategic review. Recognition is now exploring partnerships with publishers and music companies to manage its assets effectively.
“We envision Recognition Music as a collaborative force in this industry, aiming to foster partnerships that were not previously prioritized,” Katovsky stated, outlining the company’s future direction.
Source
www.billboard.com