Merck Mercuriadis is to step down as chair of Blackstone-owned Hipgnosis Song Management (HSM) as the private equity giant vies to acquire FTSE 250 music rights company Hipgnosis Songs Fund (HSF).
HSM announced on Tuesday that Mercuriadis’ departure would be effective upon closing of the proposed acquisition by Blackstone.
Mercuriadis founded HSF in 2018 and created HSM to act as the company’s manager and investment adviser.
“As Hipgnosis Songs Fund enters the next phase of its development, now is the right time to
hand the reins to a trusted and highly capable team,” Mercuriadis commented. “I am excited about the company’s future and its ongoing success with the support of Blackstone.”
In June, Blackstone upped its offer for HSF by $0.01 to sweeten the deal for shareholders. Blackstone will need 75 per cent of voting shares to approve its deal at a meeting next Monday.
Mercuriadis previously stepped down as chief executive of HSM in February following tension between the company and HSF’s newly-appointed board.
In March, an independent valuer found that the trust’s adviser had inflated growth figures and overstated the value of its portfolio, leading to strong disagreements between the two parties over whether to accept the report.
Mercuriadis said on Tuesday that it was “a timely opportunity for me to undertake a strategic shift of focus, and to spend more time advocating on behalf of songwriters to ensure that they are properly compensated for their work”.
Late last year, a leadership reshuffle took place at HSF after investors voted against the board to oust previous chair Andrew Sutch and two directors.
Ben Katovsky, chief executive of HSM, said on Tuesday: “Merck’s vision and passion in creating Hipgnosis, assembling an extraordinary portfolio of iconic songs and campaigning for songwriters to be fairly paid has been instrumental in Hipgnosis’ journey to date.”
Qasim Abbas, senior managing director at Blackstone Tactical Opportunities, added: “Merck’s dedication to songwriters and his advocacy on their behalf is second to none and we respect and will seek to build on the platform he founded.”