The sale includes a portfolio of 29 music catalogues and a portfolio of non-core songs, the London-listed fund said on Thursday.

Founder Merck Mercuriadis is the CEO and founder of the investment adviser, Hipgnosis Song Management, and holds a minority interest in the buyer, Hipgnosis Songs Capital.

The sale of the first portfolio, worth $440 million, has a "go-shop" provision, meaning the board is entitled to solicit alternative offers for a period of 40 days from its announcement.

The first portfolio accounted for 19% of the company's portfolio by value as of March 31, and includes music from pop star Shakira and rapper Nelly.

Hipgnosis Songs Fund, which also owns rights to songs by musicians such as Red Hot Chilli Peppers, Neil Young, and Blondie, will retain ownership of seven of its ten largest catalogues, it added.

Shares were up 5% in morning trade.

(Reporting by Aby Jose Koilparambil and Yadarisa Shabong in Bengaluru; Editing by Janane Venkatraman)