Musgrove visited England in 1879, a time when Gilbert and Sullivan had commenced their operas. At the end of 1880, Musgrove produced "La fille du tambour-major" at the opera house, Melbourne, which had a record run of 101 nights. This success led the young producer to join a partnership with J. C. Williamson and Arthur Garner. They formed the Willamson, Garner and Musgrove Company in July 1882 when they became joint lessees of the Theatre Royals in Melbourne and Sydney. The partnership split in March 1890 with Williamson and Garner continuing to run the Theatre Royal in Melbourne along with the Princess Theatre and Musgrove taking control of the Theatre Royal, Sydney. Musgrove managed a successful season of "Paul Jones" with Marion Burton and Nellie Stewart in the leading parts. At the end of 1892, Williamson and Musgrove went into partnership again for about seven years, Musgrove living much of the time in London. In 1898 he brought a complete American company to the Shaftesbury Theatre, London, to play "The Belle of New York", which had an enormous success.