Hipgnosis Song Management said on Tuesday Merck Mercuriadisfounder of the pioneering music rights company that owns his catalogs Shakira and red hot chili pepperswill step down from the role of chairman of the investment manager.
The star's ex-manager acts like Beyoncé, Guns N' Roses and Elton John, Mercouriadis created a Hipgnosis suite of companies–two catalog acquisition funds and an investment manager that worked to deliver a return on song rights held by both catalog funds. His departure will take effect on Monday (July 8) if shareholders in the publicly traded side of the catalog – Hipgnosis Songs Fund – vote to sell to the privately traded side of the catalog, which is owned by the private equity giant Black stone.
Under Mercouriadis, Hipgnosis was one of the biggest proponents of music rights as a stable, attractive asset class and a key player in the buying frenzy for those assets that followed. Mercuriadis' departure comes after a year in which the Hipgnosis Songs Fund has faced a shareholder revolt, an accounting scandal, a bidding war and a bitter infighting between the board of listed Hipgnosis and investment manager Mercuriadis. In a statement, the music executive said it was the “right time” and a “timely opportunity for me to undertake a strategic shift in focus.”
“With the Hipgnosis Songs Fund and Hipgnosis Songs Assets we have created an extraordinary rights catalog for an unrivaled collection of iconic and culturally significant songs from amazing songwriters who I knew would be proud to stand alongside each other,” Mercouriadis said in a statement. “HSM has been built on an ethos that has always put the songwriting community first, and I am steadfast in the commitment I have made to all of our songwriters. I've always envisioned bringing songwriters together and organized to ensure they have a voice at the table, representing the consensus views of their community, in discussions about their compensation.”
Added Ben Katowsky, CEO of Hipgnosis Song Management: “Merck's vision and passion for building Hipgnosis, assembling an extraordinary portfolio of iconic songs and campaigning for fair remuneration for songwriters has been instrumental in Hipgnosis' journey to date. I am grateful for his support and the trust placed in me and the HSM team to build on his passion. We remain committed to bringing the iconic songs in our care to new audiences and ensuring they enjoy the continued success and attention they so richly deserve.”
Mercouriadis had been president of Hipgnosis Songs Management since February, when he stepped down as CEO managing the investment manager's day-to-day operations.
