As the uncertain future of Hipgnosis Songs Fund (HSF) looms, Sylvia Coleman, a longstanding director, has formally resigned from the board. The departure of Coleman, who joined the board in November 2019 and played a crucial role in recent months, was announced by Hipgnosis in a brief statement. Chair Robert Naylor expressed gratitude for Coleman’s support during the company’s transitional period and wished her success in the future.
The resignation comes amidst a series of changes at HSF, marked by controversy and opposition from the majority of investors regarding the company’s continuation. Following an October vote, the board has until late April this year to present a plan for the company’s future, potentially involving the liquidation of its assets. However, complications arise from contentious clauses in HSF’s agreement with its investment adviser, Hipgnosis Song Management (HSM), powered by Blackstone.
The turmoil extends to failed votes against the retention of Andrew Sutch as chair, resulting in his departure, along with resignations from board members Andrew Wilkinson and Paul Burger. Robert Naylor, now the chair, joined HSF in November, while Francis Keeling, another Round Hill veteran, became a director on the board. Activist investor Christopher Mills joined recently.
Recent events, including delays in financial disclosures and public statements from Naylor and HSM, hint at a broader dispute that is expected to unfold in the coming months. The controversy has raised concerns among investors and points to potential challenges for HSF’s restructuring and the sale of intellectual properties.
