Madhouse turned out to be another alter-ego/psuedonym for Prince. Just like he wanted to express his funk-roots using the moniker The Time, he wanted to express his jazz-roots with Madhouse. And, as was the case with the Time, everything was created solely by Prince. The difference being that Eric Leeds contributed saxophone and flute. It would turn out to be the last project that Prince really made an effort to hide his role in a project, for which he had composed, arranged, produced and performed everything.

The second Madhouse album, 16, containing the songs 9, 10, 11, 12, 13, 14, 15 and 16, was released on November 18th, 1987. The musicians on that record were Prince and Eric Leeds, on 4 songs assisted by Levi Seacer Jr (bass), Matt Fink (keyboards) and Sheila E. Once again recorded very fast, from July 30th until August 2nd 1987, at the recently opened Paisley Park Studios. A number of Frank Zappa/Mothers Of Invention samples were utilized.