Get the latest gossip

Hipgnosis Songs Fund Overstated Revenue, Earnings & Its Stakes in Music Catalogs, Says New Report

Hipgnosis Songs Fund inflated earnings, song catalog stakes and more, says a report on the fund with stakes in catalogs by Justin Bieber and more.

Hipgnosis Songs Fund, the troubled publicly traded music royalty company that owns full or partial rights to song catalogs from the Red Hot Chili Peppers, Shakira, Justin Bieber and Neil Young, issued a damning report Thursday (March 28) compiled by a third party that details missteps the fund and its investment advisor made leading to a 26% portfolio downgrade earlier this month. The London-listed fund, which became the poster child for music as an investable asset class, cut the value of its portfolio earlier this month and told investors not to expect the resumption of dividends “for the foreseeable future” while the company focuses on paying down debts. However, Mercuriadis and Hipgnosis Songs Fund’s board frequently touted that their industry expertise would be a valuable tool to make these rights outperform passive catalogs.

Get the Android app