’No small affair’ - Bowie Bonds and the birth of music royalty assets
In 1997, 30 years after emerging as an artist, David Bowie had released 25 albums and changed music forever. Looking to secure funds to buy back his extensive catalogue owned by his ex-manager Tony DeFries, Bowie and his financial advisor David Pullman came up with the idea of ’Bowie Bonds’ or 'Pullman Bonds' as they are also called.
What are Bowie Bonds then?
Bowie and his team made an assessment of the royalties his back catalogue would generate in the future and then sold them as collected assets which would yield the investors an annual return of 7.9 % during a ten year period.
Investors now had the chance to own a part of the rock star’s legacy, as well as having the opportunity to make a profit from the steady stream of income the catalogue would generate.
A whole new market was born
In the end, Bowie got a $55m investment - which was in part used to buy back shares from his old manager. Not only did it help Bowie take control over his music and finances, but it also opened the door to a whole new market. And though the bonds lost value during the set period, they recouped back to their original status - making them a profitable investment in the end.
As an innovator in both music and within the financial sector, David Bowie continues to inspire us here at Tangy Market. Thanks to the digitalization, we are able to give music owners the opportunity to raise funds and keep their rights, while letting you invest in songs you believe in.