(Alliance News) - Merck Mercuriadis is stepping down as chief executive of music royalties fund manager Hipgnosis Songs Management.
It comes amid an increasingly intense relationship between HSM and the board of FTSE 250-listed Hipgnosis Songs Fund Ltd, the music royalty fund whose assets HSM manages.
The fund, which owns back catalogues for artists including Justin Bieber and Shakira, is currently undergoing a strategic review process which could see its assets sold, or be wound up completely.
However, bosses at the fund have warned that a call option held by HSM, which allows it to buy HSF's assets, is damaging the value of the portfolio and therefore impacting upon demand from possible suitors.
Last month, HSF said it was willing to offer up to GBP20 million to anyone who wishes to make a bid for its music catalogue in a move to entice suitors.
On Friday, HSM announced it will now shake up its leadership team, with founder Mercuriadis stepping down as chief executive, to become the fund manager's chair.
He will be replaced in the top role by Ben Katovsky, currently chief operating officer of HSM.
The firm added that Mercuriadis will lead its engagement with songwriters and artists, while Katovsky will assume responsibility for managing the business and implementing HSM's growth strategy.
Mercuriadis said: "One of our most important goals has been to bring an institutional rigour to Hipgnosis Song Management.
"Over the last 16 months, Ben (Katovsky) has done an amazing job building the team and HSM's capabilities to deliver the best possible service to our clients, and I'm certain this appointment makes us stronger."
Katovsky said: "I look forward to continuing to work closely with Merck, our senior leadership team, my colleagues, our songwriters, our clients and shareholders.
"I particularly hope we will be able to work constructively with the board of Hipgnosis Songs Fund Ltd, as I believe that HSM is best able to deliver value for their shareholders whether they decide the company has a future as a long-term operation or wish to pursue the sale of assets following their strategic review."
Shares in HSF were flat at 67.00 pence each in London during morning trading on Friday.
By Henry Saker-Clark, PA Deputy Business Editor
source: PA
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Hipgnosis Song. (SONG)
