Merck Mercuriadis, founder of the influential catalog investment group Hipgnosis, is preparing to launch a re-vamped version of that company, this time with the aim of co-investing with artists and their managers, according to an article in the Financial Times.
The former manager of star acts like Beyoncé, Guns N’ Roses and Elton John, Mercuriadis built a suite of Hipgnosis companies–two catalog acquisition funds, and an investment manager that worked to generate a return on publishing and other rights it owned to songs by the likes of Shakira, Red Hot Chili Peppers, Fleetwood Mac and Diana Ross. Amid tumult at the branch of Hipgnosis that was publicly listed on the London Stock Exchange, private equity giant and Hipgnosis-backer Blackstone bought and consolidated those companies, renaming them Recognition Music, with Mercuriadis ultimately leaving the group in 2024.
During Hipgnosis’ heyday, Mercuriadis made bold pledges to be artists’ and songwriters’ advocate making them “the most money possible while compromising the least.” The new Hipgnosis that he plans to launch will continue that mission by creating a platform providing services to superstar artists who are their own brands and buying some catalogs, too, the music industry veteran told the FT in an article published July 6.
Investors have committed hundreds of millions of dollars of backing for Mercuriadis’ new venture, and the group is in talks for its first two acquisitions, the FT reports.
In the wide-ranging interview, Mercuriadis rejected the assertion that Hipgnosis fueled a run-up in the price of catalogs by overpaying, he blamed “activist investors for the sudden end of his former company,” and he said he hopes one day to buy back the rights he accumulated under the Hipgnosis name.
“One of my goals is to buy the catalogue back,” Mercuriadis said in the report. “Blackstone are … getting a great return on the catalogue that I put together. So I’m going to have to pay properly for it.”
Recognition Music did not immediately respond to a request for comment.
