The partnership will see Blackstone take an ownership stake in Hipgnosis, as well as supporting the company’s expansion of both infrastructure and business functions.
This will include the “the development of new song management expertise, data science capabilities and technology solutions”.
Blackstone was advised on the transaction by Goldman Sachs, FTI, Kirkland & Ellis and Deloitte. Hipgnosis was advised by RBC, Capstan Capital Partners and Stephenson Harwood.
Merck Mercuriadis, CEO of Hipgnosis, said: “Hipgnosis Song Management has firmly established songs as an asset class.
“Given the strength of our pipeline, we see the initial commitment as just the start of a long-term partnership between Blackstone and Hipgnosis that will also include co-investment with SONG.”
Qasim Abbas, senior managing director at Blackstone Tactical Opportunities, said: “This partnership underscores the long term, sustainable value we see in creative content across the wider entertainment industry, building on Merck’s vision and dynamism.
“The music industry has been at the forefront of the fast-growing streaming economy and is unlocking new ways of consuming content. We look forward to working with Merck and his team to continue their exciting journey and safeguard the legacy of the songwriters that entrust us with their content.”
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