Hipgnosis Songs Fund Ltd (LON:SONG) has raised another £231mln, sending it straight to the top of London’s fundraising charts.

The music royalties specialist said on Thursday that a total of 231mln C Shares had been sold to investors at 100p per share.

The Hipgnosis fund buys the rights to hit songs and owns a current catalogue including Justin Timberlake, Madonna, Jay Z, Rihanna, and Drake.

It receives royalty payments each time one of its songs is played on the radio, streamed online, featured in media, or bought on CDs or vinyl – which founder Merck Mercuriadis says makes music more “predictable and reliable” than gold or oil.

The rapidly growing music streaming business has prompted a recovery in global music revenues since 2014, but the market continues to evolve with songwriters complaining of meagre revenues and motivating regulatory rulings in the US.

Mercuriadis, who formerly managed recording artists Beyonce, Elton John, and Iron Maiden, said he was “delighted by the strong response from our existing shareholders and new investors”.

“This is a demonstration of the financial community recognising the true value of music and proven songs,” he added.

The founder also noted that having raised over £625 million since its IPO in July 2018, Hipgnosis has been “one of the biggest fund launches on the London market in recent times”.

The song licensor expects shares to be admitted to trading on the London stock exchange’s main market on 22 October.