Hundreds of Lipa students gathered with their families and friends to get their degree certificate and the famous Lipa badge.
Mark Featherstone-Witty, chief executive of the institute, said: "It is wonderful to see so many graduates here today with their families and friends."
Hayley Doyle, aged 22, from Litherland, graduating with an acting degree said: "I'm really proud to be graduating from Lipa - and getting a degree handed to me by Paul McCartney."
Music graduate Ranjit Burman, 34, from Bootle, said Lipa was great for the city.
He added: "Paul McCartney is the reason why I went into music. Lipa is setting a precedent, putting out real quality talent into the world".
Sir Paul added: "From those early days, when I was about 11 and this whole speech day process, I can't believe what's happened to me in my life.
"I feel like I was originally just trying to get out of doing a job, but it turns into something else, something you love, a passion or phenomenon when you meet mates like I met in the Beatles.
