Many investors have shelled out big in recent years to buy the music catalogs belonging to some of the biggest names in the music business. Think in terms of Bob Dylan, David Bowie, Stevie Nicks, the Red Hot Chili Peppers, Sting, Bruce Springsteen, Neil Young and many others who have sold their catalogs for huge paydays.

Bill Cisneros, president of Primary Wave IP Investment Management, is among the investment managers involved in the music investing space.

Why has music surged in recent years as an investment of choice, and what characteristics does music feature that make it attractive?

While Primary Wave has been investing in music intellectual property (IP) for 18 years, we have recently seen growing interest in the space, for both good and bad reasons.

On the positive front, we see growing investor needs for long-duration real assets that can deliver uncorrelated income, growth and total returns. Beyond those positive attributes, mus