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June 20, 2002 at 08:00 PM
After nearly five years of negotiations, launching the asset-backed security “Bowie bonds,” and securing their place in Motown, Pullman Bonds are gold despite a less-than-gilded economy.
David Pullman, founder and CEO of the New York-based Pullman Group LLC (www.pullmanbonds.com), says the conservative, yet “sexy,” investment outlet is perfect for those “who get it,” especially when other investment options are not as attractive in today’s market.
In 1998, Pullman sealed a $55 million first-of-its-kind bond deal with David Bowie–birthing Bowie bonds. Under the concept, bonds are sold to investors who then collect royalties as their interest payments. Bowie got his future royalties money up front for a catalog of more than 300 songs, and investors got a 10-to 20-year guaranteed-payout investment.
“I got into this because intellectual property is the biggest in the world,” Pullman says. “We looked at what the historical cash flow was and realized its potential.” With this form of intellectual property, the artists get their assets directly while retaining ownership. Investors receive payouts fairly often, regardless of overall economic performance, thus making it ideal for large institutional investors.
