Law firm Stephenson Harwood LLP has advised Hipgnosis Song Management (HSM) in relation to a new partnership with Blackstone, which will initially deliver US$1 billion to acquire music rights and manage catalogues.

HSM, which was founded by Merck Mercuriadis and formerly known as The Family (Music) Ltd, is an advisory firm focused on music assets; it advises Hipgnosis Songs Fund Ltd (SONG), the largest UK-listed investor in music catalogues and royalties with gross assets of $2.2 billion.

As part of the partnership, Blackstone has taken an ownership stake in HSM, and will support the expansion of its infrastructure and business functions, including the development of new song management expertise, data science capabilities and technology solutions. SONG will benefit from Blackstone’s investment in HSM’s management capabilities and have the right to co-invest in future catalogue acquisitions, alongside the new Blackstone–HSM partnership.

The Stephenson Harwood cross-practice team was led by corporate partner Alex Haynes, and comprised senior associate Nick Horton and associate Megan Ong. Further specialist advice was provided by intellectual property partner Alexandra Pygall and tax partner John Meehan.