Hipgnosis Songs Fund, a specialist investment company investing in songs and musical intellectual property rights, is seeking to raise £200m via a public offering.
Hipgnosis Songs Fund invests in songs and musical intellectual property rights which involves acquiring songs, enabling investors to benefit from the royalties and related income.
The vehicle aims to provide investors with an attractive and growing level of income and capital growth.
The company was set up by Merck Mercuriadis, who formerly managed artists such as Beyonce, Sir Elton John and Guns N' Roses.
The fund is now looking to raise £200m by floating on the London Stock Exchange and will target a 6.5% annual dividend yield once fully investing, with the first dividend due to be paid in November 2017.
It hopes to list on the stockmarket within the next two weeks.
Hipgnosis has set up an advisory board featuring musicians and songwriters, including Chic guitarist Nile Rodgers, who played Glastonbury last weekend, and rapper The-Dream.
The firm said: "There is currently a unique market opportunity as technology disruption is changing the way music is consumed.
"In 2017, revenues from streaming services are forecast to surpass CD/vinyl sales for the first time as music consumers switch from illegal downloading to convenient and legal streaming, which is resulting in improved monetisation of music.
"Global music revenues are also predicted to increase due to penetration of smartphones and a reduction in piracy rates in emerging markets, global synchronisation income being more trackable, and integration of music technology in other products."
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