Hipgnosis Songs Fund joins the stock market as it buys up a back catalogue including Justin Bieber, Rihanna and Beyonce

Emily Nicolle
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Nile Rogers, music legend and Hipgnosis board member, rang the opening bell
Nile Rogers, music legend and Hipgnosis board member, rang the opening bell with a performance of his hit songs (Source: London Stock Exchange)

Hipgnosis Songs Fund launched on the London Stock Exchange earlier today raising an initial £200m, and announced the acquisition of its first catalogue that will include hits from the likes of Justin Bieber, Rihanna and Beyonce.

Led by the former manager of big names like Sir Elton John, Guns N' Roses, Iron Maiden and the Pet Shop Boys, founder and industry veteran Merck Mercuriadis said that the company's goal is for its shareholders to grow long-term income from investment in songs and associated music intellectual property rights.

It has spent $23.75m (£17.93m) to acquire a 75 per cent stake in the catalogue of Terius Youngdell Nash, better known by his stage name The Dream.

"It's critical for us to set the highest standards with our first acquisition," said Mercuriadis.

"The Dream is not only arguably the culturally most important songwriter of his generation, but he has written the marquee songs for the culturally most significant artists of our time, including Beyoncé, Rihanna, Justin Bieber, Jay Z and Kanye West."

Read more: Music investment fund Hipgnosis Song plots second attempt at IPO

The catalogue includes the rights to songs like Rihanna's 'Umbrella', Beyonce's 2010 Grammy award-winning 'Single Ladies', and Justin Bieber's acclaimed 'Baby'.

Eventually, Mercuriades intends to spend the remainder of the £200m raised on similar catalogues within nine months.

The company had first attempted to go public last year, after delaying the launch twice before.

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