Masterworks

5.0

Collectibles

Invest in paintings by the best selling artists of all time. Masterworks is the first company to allow investors to buy shares in great masterpieces by artists like Banksy, Warhol, and more.

Investment risk

Medium

Min investment

$5,000

Target return

10% - 25%

Fees

1.5%

Overview

Founded in 2017 by Scott Lynn, Masterworks is the first company to allow investors to buy shares representing ownership of great masterpieces by artists like Warhol, Monet, and more. They’re making it possible for everyone to invest in blue-chip artwork. For too long, access to blue-chip art investments has been limited to the ultra rich who purchase masterpieces—often historical treasures—and remove them from public display when they enter their private collections. Masterworks is opening the doors to top-tier, blue-chip art investments to everyone. With Masterworks, you can invest in history.

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Why Invest

  • Fine art outperformed the S&P 500 by 180% from 2000 - 2018
  • Recent sale returned 32% to investors in under 12 months
  • Sell your shares at anytime on their Trading Desk

How you make money

You are able to gain a return through the appreciation of the asset. You can realize the return when the asset is sold or through the ability to sell your shares on the secondary market. Masterworks only targets artworks where the artist has achieved a 9% to 15% annual return historically. Each painting is displayed in a members-only art gallery in SoHo, New York for a minimum of three years, and then assessed for its sale potential. Proceeds are divided among investors when a private collector buys the artwork. If there’s no opportunity to sell or redeem your shares in a painting after seven years, Masterworks will attempt to sell the painting through avenues like auctions. Investors can also sell shares (or buy) in artworks using Masterworks’ Secondary Market trading platform.

How Masterworks makes money

Masterworks charges a 1.5% annual fee and 20% commission on the profit made from a sale. The annual fee includes the costs for SEC filing, storage, gallery space, transportation, insurance and audits. There may be additional expenses and fees for acquiring, sourcing, securitizing or selling the artwork. It is important to note that the 1.5% fee is taken as equity in the artwork, so your investment does get slightly diluted each year.

Is it Safe?

Masterworks was founded in 2017 by Scott Lynn - an active collector of contemporary art himself. They source works of art from collectors, advisors, galleries and dealers and buy them with their own capital. Artworks are chosen based on certain investment criteria, including the artist’s collector base, the average appreciation rate, and demand for the paintings. The artwork is registered with the SEC (Securities and Exchange Commission) and each painting is displayed in a members-only art gallery in SoHo, New York for a minimum of three years, and then assessed for its sale potential. Each piece is insured in case of damage, theft, or other potential events that could impact the assets. Artwork investing can be highly volatile and is never guaranteed, but the acquisition process, insurance, and SEC registration should allow you to invest confidently with Masterworks.

Things to know

  • You make money onValue
  • Fees1.5%
  • Payout frequencyAsset sold
  • Term of investment60+ months
  • LiquidityEasy
  • Open toAll Investors

Company

  • Country availabilityWorldwide
  • Assets under management$80M
  • Established2017
  • Mobile Application No

Investment Return Calculator

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Monthly

Amount invested

$11,000

Total fees

$819.58

Value after fees

$15,147.64

Any references to past performance, regarding financial markets or otherwise, do not indicate or guarantee future results.

Forward-looking statements, including without limitations investment outcomes and projections, are hypothetical and educational in nature. The results of any hypothetical projections can and may differ from actual investment results had the strategies been deployed in actual securities accounts.

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Investment risk

Medium

Min investment

$5,000

Target return

10% - 25%

Fees

1.5%