HOW TO INVEST IN BROADWAY
How Can I Invest In A Broadway Show?
Broadway investing is not typically open to the public. Broadway is a very tight group of producers with their lists of investors and co-producers. Once in a while, a show will offer a small portion of their capital raise to the public, but most shows are funded privately through lead producers and co-producers.
I’ve been fortunate in my career to have met many producers and directors, as well as writers, composers and performers. Our network of wonderful industry people has allowed us to be part of helping create Broadway shows.
Broadway Investing Can Be Fun
Most investments are fairly cut and dry. Investing in a home, for example, is just a home. One of the reasons we invest in Broadway and the arts is to create something special, to be part of something special.
Early investors may be part of a show’s developmental process, watching a show come from a script to adding choreography, to adding orchestration and costumes, to staging. Some producers may have input into casting decisions.
There is a feeling we get when we are part of a show that is much more than just a simple investment. We’ve also made incredible friends over the years through our involvement in the Broadway community.
Be Part Of A New Business Venture
Most Broadway shows are set up as a separate company or partnership. Investors and producers are generally shareholders, so you really are in a sense a part of the show.
The business investors may get to celebrate together if and when the show opens on Broadway at the Opening Night show as well as the afterparty. They may even get Opening Night gifts to keep.
Most shows are run like a business, with administrative staff, budgets, projections, advertising and more. Actors and musicians are essentially employees of the company. The business has a goal - to be profitable. The more profit, the greater the chance it will run for a long time, and spin off into other investment opportunities.
Investing In Tours And Soundtracks And More
In many Broadway productions, the investors and producers may also have first right of refusal to invest in ancillary projects. These may include national tours, cast albums, sit downs around the US, and international productions. The main business will often license these rights to produce the ancillary productions, so the business can make extra money from licensing even if there is no additional investment beyond the original show.
Weigh Risks And Benefits
When investing in a show, like any business, there is a risk of losing all or some of your money. Don’t invest more than you can afford to lose. One benefit is that you generally cannot lose more than you invest, unlike some business partnerships.
Know who is behind the show. Research the cast if available. Hamilton, for example, would be a great investment. The team and cast had a tremendous successful history. While past results never guarantee future success, it is always good to make informed decisions.
Feel free to reach out for more information on what Broadway investing is all about!