Blackstone has rebranded its $3bn (£2.32bn) music investment business to ‘Recognition’, letting go of its former name ‘Hipgnosis’, as it prepares for new acquisitions and consolidates its assets.
This decision follows the company’s takeover of the Hipgnosis Songs Fund in 2023, which held the rights to songs by the likes of Shakira, Fleetwood Mac, and Justin Bieber.
This restructuring will bring together 45,000 songs from over 140 catalogues, merging Hipgnosis songs assets, the previously listed Hipgnosis Songs fund, and Hipgnosis Song Management, which formerly acted as an investment adviser.
Ben Katovsky, chief executive of Recognition, revealed that the business would now operate in a “fundamentally different way”, reported the Financial Times.
The business will now leverage technology to maximise the value of its assets through film, TV placements, and global royalty collection.
Blackstone’s overhaul follows a high-profile bidding war against Apollo-backed Concord for Hipgnosis’s Songs Fund. Blackstone ultimately secured the deal for $1.6bn (£1.24bn).
The company is doubling down on music as an asset class.
Qasim Abbas, a senior managing director at Blackstone, said the firm was “committed to asset class and market”.
He also added that Recognition was set to become a “leading independent investor in music rights.”
In November 2023, Blackstone completed a $1.5bn securitisation of its music holdings, one of the largest debt financings for music rights to date.
At the same time, the firm announced the sale of 20,000 “non-core” songs for £18.4m, which it said would be used to repay revolving credit facility drawings.
Recognition, now one of the largest independent music rights owners, plans to expand selectively.
“We have a strong ambition to grow”, said Katovsky, before adding that Recognition will remain “sensible” about pricing and quality in any future acquisitions.