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Hipgnosis Songs Fund is suing Barry Manilow over bonus funds tied to its buy of the American singer’s again catalogue.
A lawsuit filed on the Excessive Court docket in London on Monday described the case as a breach of contract, with out offering additional particulars.
Based by entrepreneur Merck Mercuriadis, Hipgnosis was a driving power behind the emergence of music rights as an asset class, utilizing the royalties from steaming, radio play and performances to supply earnings for traders looking for returns within the period of record-low rates of interest.
Hipgnosis, whose portfolio contains music by the Pink Scorching Chili Peppers and Shakira, acquired the rights to 917 songs by Manilow in 2020. The 81-year-old’s hits embody Copacabana (On the Copa) and Mandy.
In an announcement to the Monetary Occasions, Hipgnosis mentioned: “That in dialogue with Mr Manilow’s representatives it turned clear that there was a distinction in understanding of sure clauses within the sale settlement relating to bonus funds.”
The dispute is over a sum within the low single-digit hundreds of thousands, mentioned an individual acquainted with the matter.
Representatives for Manilow didn’t reply to requests for remark.
On the time of the sale, Manilow hailed Mercuriadis for making a “new kind of music firm”. Mercuriadis described Manilow as an “worldwide treasure”.
Final 12 months Billboard reported Rod Stewart had backed out of a possible catalogue sale to the corporate after two years of negotiations.
The lawsuit follows a calamitous interval for Hipgnosis after rising rates of interest undercut its enterprise mannequin, sending its share value beneath the valuation that the group placed on its music portfolio.
Earlier this 12 months, Hipgnosis agreed to a $1.6bn takeover by non-public fairness group Blackstone. Mercuriadis final month mentioned he would step down following the completion of the sale.
