Frequently Asked Questions
Can I make money investing in Broadway or should I think of it more like a donation?
Investing in Broadway is high risk. In fact, there is a statistic that only one in five Broadway productions turns a profit. However, we believe that there are ways to increase the odds that you are identifying the one in five. And even more easily, how to identify the shows that will not.
There is a saying that "you can't make a living on Broadway, but you can make a killing!" There are few investments out there that have the potential to return 10 or 20 times the investment. Take for example the investors in the Fantasticks who have earned a 24,000 percent return on their investment. Finding a winner like Hamilton, Wicked, Jersey Boys or Book of Mormon could not only mean a return of multiple times the investment as the show continues to play on Broadway, but also subsidiary rights, licensing, and rights to invest in the national tours and international productions, which can provide additional income for years and years after opening night. Finding a smash hit could make up for a handful of misses along the way.
It's important to note that for most people, investing in Broadway is not primarily to make money. There are safer vehicles for generating predictable returns over time. Many people simply enjoy the opportunity to support great art and if it also makes a lot of money, it's not only a bonus but gives the ability to invest in more great art. We have had shows where we lost our entire investment and yet we walked away very proud to be a part of bringing the production to the world. There may also be shows that are commercially successful but have less artistic merit. Our general club philosophy is to invest in great art that we also believe has high commercial appeal.