Blackstone’s Hipgnosis Acquisition Is Now Backing a $1.5B Securitization

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Blackstone's Hipgnosis music catalog acquisition is backing a $1.5B ABS, backed by songs by Neil Young, Shakira, The Chainsmokers and others.

Just three months after Blackstone acquired the music assets of Hipgnosis Songs Fund and folded them into Hipgnosis Songs Management , the hit-filled catalog featuring theLyra Music Assets is HSM’s second asset-backed securitization , which allows a company to raise capital and pay interest with the royalties generated by the catalog’s music publishing and recorded music rights. The assets in this catalog,from the publicly traded HSF in July for $1.

Lyra Music Assets is the latest in a string of music royalty-based securitizations that allow music companies to utilize their massive catalogs to raise additional capital.earlier this year, securitizations have increased in popularity as publicly traded royalty funds — HSF and Round Hill Music Royalty Fund — have fallen out of favor. HSM’s previous ASB,Record Labels

 

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