The investment adviser of Hipgnosis Songs Fund failed to perform to music publishing industry standards in key areas, according to reports commissioned by the company.
The embattled London-listed music investment group, which is considering options for its future, yesterday disclosed the findings from due diligence and valuation reports by Shot Tower Capital.
The research found that Hipgnosis Song Management, its investment adviser, had fallen below standards on advising the fund and underwriting catalogue acquisitions, as well as on putting systems and people in place to manage the rights once they had been acquired.
The shortcomings also allegedly involved providing investors with accurate financial statements and public disclosures and managing conflicts with the fund. Shot Tower further claimed that although Hipgnosis’s catalogue was of “high quality”,
