If you don't own your masters, your masters own you.
How David Bowie raised $55 million and bought back his masters.
Back in 1996, Prince shared some wisdom in Rolling Stone…
“If you don’t own your masters, your masters own you.”
David Bowie must have read the interview, because a year later he launched a ballsy coup to buy back his masters from his old business manager.
Starman lands on Wall Street
Bowie partnered with an investment banker named David Pullman to issue what would become known as the “Bowie Bond”.
It was an asset-backed security that offered fans a unique investment opportunity. For just $1,000, they could enjoy an interest rate of 7.9% over the course of a decade.
The collateral for the bonds was David Bowie’s royalty streams for his past and future album sales, as well as his live performances.
Pullman legitimized Bowie Bonds by getting them rated by three different credit agencies: Moody’s, Standard & Poor’s and Fitch.
He then laughed his way to the bank
Through Bowie Bonds, Bowie raised $55 million; a good chunk of which he used to buy back his masters from his old business manager.
When most people think of David Bowie, they think of a once-in-a-generation talent that pushed the boundaries of art and music.
However, Bowie’s creativity transcended art. To this day, Bowie Bonds are one of the most creative financial maneuvers Wall Street has ever seen.
By Cole Schafer