© Reuters. FILE PHOTO: Merck Mercuriadis attends the Songwriters Hall of Fame 51st Annual Induction and Awards Gala in New York New York, U.S., June 16, 2022. REUTERS/Caitlin Ochs/File Photo
(Reuters) – Music business veteran Merck Mercuriadis has stepped down as the CEO of Hipgnosis Songs Management (HSM), the artist administration agency he based, in a transfer that would assist enhance relations with the corporate’s music royalties fund.
Mercuriadis, who has managed bands together with Guns N’ Roses and artists such as Elton John and Beyonce, will to tackle the newly created position of chairman and hand over the CEO place to Chief Operating Officer Ben Katovsky, HSM mentioned on Friday.
HSM manages over 150 tune catalogues and is the funding adviser to Hipgnosis Songs Fund (HSF), a belief, which holds the rights to the work of artists starting from Shakira to Neil Young.
Mercuriadis, 60, based each the companies, attracting buyers with a gentle supply of revenue on royalties from streaming and performances, however faltering valuations amid excessive rates of interest has angered some.
Relations between HSM, which is backed by personal fairness agency Blackstone (NYSE:), and HSF have additionally become strained in current months after HSF shareholders revolted towards a $440 million catalogue sale deal, which compelled a revamp of the fund’s board and a strategic assessment.
A key level of competition has been HSM refusing to drop a name choice from its advisory settlement that enables it to bid for HSF’s portfolio.
On Wednesday, HSF shareholders will vote on a proposal to enshrine the fee of a price of up to 20 million kilos as “cost protection” to potential bidders who could also be deterred by the decision choice.
HSM mentioned it had sought approval from the fund for the administration transition.
“HSF is our biggest client so out of respect we wanted them to confirm they have no issue with Merck’s new role, and we do not believe there would be any justification for them not to agree,” a spokesperson for HSM mentioned in an emailed assertion.
Katovsky, 42, and in addition a longtime music business government, has been with HSM since 2022.
“I particularly hope we will be able to work constructively with the Board of Hipgnosis Songs Fund Ltd,” he mentioned in an announcement.
HSF didn’t instantly reply to a request for remark.