MacDonald briefly attended King's College, Cambridge, at first to study English, then archaeology and anthropology. He dropped out after a year. While at Cambridge, he was distantly acquainted with the singer/songwriter Nick Drake. From 1972 to 1975 he served as assistant editor at the "NME". MacDonald began a songwriting collaboration as lyricist with Quiet Sun, which included his brother Bill MacCormick and future Roxy Music guitarist Phil Manzanera. The collaboration resumed in the late 1970s, with MacDonald providing lyrics for the album "Listen Now". Later, Brian Eno assisted MacDonald in producing "Sub Rosa", an album of his songs released on Manzanera's label.