Investec downgrades Hipgnosis Songs to 'Hold' after catalogue sale to Blackstone-backed fund

‘The board has fallen short here’

Valeria Martinez
clock • 2 min read

Investec has downgraded Hipgnosis Songs from ‘Buy’ to ‘Hold’ after the trust announced it would be selling a fifth of its music catalogues for $465m, in a bid to re-rate its share price.

Yesterday (14 September), the trust said it had agreed to sell the music catalogues to Hipgnosis Songs Capital, the Blackstone-backed private fund managed by SONG's investment adviser, Hipgnosis Song Management. Using the proceeds from the catalogue sales, the board also outlined a share buyback programme of up to $180m and the repayment of $250m drawn under the trust's revolving credit facility, as well the introduction of additional, lower investment advisory fee tiers. Hipgnosis Songs music catalogue sale comes under scrutiny as continuation vote looms The move has been placed u...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Investment Trusts