In the case of live shows - An investor lends money. A producer assembles a team and produces a show. If it's a great show, in the right market, with the right promo, they sell out every night and nX the investor's ROI.
I used to direct circus, and my producer friend produces circus. If a live musician rehearses alone or in a band then they have very low overhead costs, and the agent/record company model seems to be working well for touring music. Circus/theatre/dance/comedy is more stuck.
Might be the rapid cycle time. Capital tends to like parking at lower return for more time over higher return for short time. Less tax, less management work to redeploy.
Hmm. I keep cycling back to - why has nobody created a managed arts investment fund where people can park their money and an arts fund manager cycles it out to production companies/producers?
It’s not a bad idea. Just that there have been better investment opportunities for a long time. Without looking at returns and spread numbers, I’d guess that they are net low (flops cost money too) and high management load. I’d guess broadway plays would be a good set to study.