Hipgnosis Songs Fund Capital Markets Day 2020
In case you missed it last week (11/09/2020), The Board of Hipgnosis Songs Fund Limited (SONG), the first and only UK listed investment company offering investors a pure-play exposure to songs and associated intellectual property rights, and its Investment Adviser, The Family (Music) Limited, hosted a virtual Capital Markets Day for analysts and investors.
Key highlights from the Capital Markets Day included:
- Updates from the Investment Adviser and introduction to the recent catalogue acquisitions, including commentary from several high profile songwriters and artists. Recent hires Ted Cockle and Amy Thomson presented on bringing their skillset and experience to actively managing the Hipgnosis portfolio, with a focus on the many opportunities available to increase song engagement and revenues.
- Senior Big Deal Music Group executives, including Co-Founder and CEO Kenny MacPherson, also presented on integrating their substantial song management, administration, and creation expertise and resource into Hipgnosis Songs Group. It is estimated that US based revenues will increase by 1% to 1.5% from the administration efficiencies being created by the acquisition of Big Deal Music Group – which will lead to higher revenues for the Company and in turn positively impact NAV.
- The independent valuation agent, Massarsky Consulting, provided commentary around the potential for lowering the Company’s discount rate, given the trend for declining discount rates observed in the market and the lower level of benchmark market interest rates.
- Bill Leibowitz presented on the evolving music industry landscape, notably the potential for liberation of negotiations between publishers and song users, and for publisher and songwriter revenues in the US to rise substantially as royalty rates for the 2023-2027 period will be reviewed in 2021, building upon the 44% increase already agreed in 2018 that is currently being phased in until 2022.
- Finally, a very recent data point from the US recorded music body RIAA was highlighted, which indicated that despite year-to-date events, music streaming revenues in the US are on course to grow by over $1bn during 2020 after a 12% increase in the first half of this year. (source: musicbusinessworldwide.com).
To watch the full Capital Markets Day, please follow the link below which will take you to the Hipgnosis Songs Fund website, where the film can be viewed.
Our work with Hipgnosis Songs Fund Limited
Singer Capital Markets have supported Hipgnosis Songs Fund from their IPO in July 2018, which raised over £200 million on admission to the London Stock Exchanges’ Specialist Fund Segment, and further follow-on equity raises including £141.5 million raised in April 2019, £51.1 million raised in August 2019, £231 million raised in October 2019 and £236.4 million raised in July 2020.
About Hipgnosis Songs Fund Limited
Hipgnosis, which was founded by Merck Mercuriadis, is a Guernsey registered investment company established to offer investors a pure-play exposure to songs and associated musical intellectual property rights. The Company has raised a total of over £860 million (gross equity capital) through its Initial Public Offering on 11 July 2018, and subsequent issues in April 2019, August 2019, October 2019 and July 2020. In September 2019, Hipgnosis transferred its entire issued share capital to the Premium listing segment of the Official List of the FCA and to the London Stock Exchange’s Premium segment of the Main Market.
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