Could it be magic? Barry Manilow song rights sold to Hipgnosis

A London-listed firm that offers investors the chance to cash in on the royalties from songs by famous artists has struck a deal to buy the music catalogue of Barry Manilow, whose five-decade career includes global hits such as Mandy and Copacabana (At the Copa).

Manilow, who released his self-titled debut album in 1973 and first reached the top of the US chart two years later with Mandy, has sold more than 85m albums worldwide.

Hipgnosis, founded by Merck Mercuriadis, the former manager of acts including Elton John, Guns N’ Roses, Iron Maiden and Beyoncé, has acquired 100% of Manilow’s worldwide recording royalties covering more than 900 songs including hits such as I Write the Songs and Could It Be Magic?

Related: Barry Manilow – all his greatest songs ranked!

The company aims to build a valuable portfolio of rights to songs that will generate good long-term returns for investors.

“Merck has created a new type of music company and I’m looking forward to being part of the family,” said Manilow.

The 77-year-old has released 40 albums and produced albums for other artists including Bette Midler, Dionne Warwick and Sarah Vaughan.

“Barry Manilow is an international treasure,” said Mercuriadis. “In the 1970s and 80s he redefined mainstream entertainment and drove it to new heights of success with truly classic songs.”

Hipgnosis has snapped up the catalogues of high-profile artists including the Lady Gaga collaborator RedOne, whose credits include Poker Face and Bad Romance, Eurythmics co-founder Dave Stewart, the Justin Bieber remix of global hit Despacito and the writers of hits including Rihanna’s Umbrella and Beyoncé’s Single Ladies.

Last month, the investment firm raised £236m, its biggest equity raising to date, exceeding the £200m it had targeted.

The company has spent £679m buying more than 50 catalogues and more than 13,000 songs, while making £64m in revenue in the year to the end of March according to its most recent annual report.