Hipgnosis Faces Investor Ire as Music Rights Fund Faces Uncertainty
Investors express dissatisfaction as Hipgnosis, the music rights acquisition company, is rejected a new five-year mandate and faces potential dissolution. A proposed sale of 29 music catalogs to Blackstone for $440 million was also voted down. Citrin Cooperman’s reduced expectations for future royalty payments and devaluation of Hipgnosis’s portfolio have impacted its market value. However, investors still see value in royalty-based assets, citing the recent success of Round Hill Music Royalty Fund.