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Masterworks

4.7

(6 Reviews)

Art

Invest in multimillion dollar paintings from $10k.
Join 500K investors

Snapshot

Open to All Investors

Fine Art Performance

+33.40%

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180+ Employees

The team brings together experience across art, finance, and technology.

10%-25%

Target Return

Contemporary art has beat the S&P over the past 25 years

Moderate

Liquidity

Buy and sell shares on the secondary market.

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180+ Employees

The team brings together experience across art, finance, and technology.

How You Earn

Growth

Invest From

$10K

Invest in

Fine Art

img-0img-1img-2

180+ Employees

The team brings together experience across art, finance, and technology.

Open to All Investors

Top Perks

Contemporary Art has returned 43% over the past 5 years.

Art has outpaced the S&P 500 by 250% since January 1, 2000.

Buy and sell shares on Masterworks’ secondary market.

Access Masterworks’ members-only art gallery in Soho.

Can I trust Masterworks?

Masterworks is backed by notable firms like Tru Arrow Partners, Galaxy Interactive and Left Lane Capital.

100+

Offerings

$110M

Amount Raised

500k

# of Investors

Offerings

100+

Amount Raised

$110M

# of Investors

500k

100+

Offerings

$110M

Amount Raised

500k

# of Investors

Overview

The total value of privately held art is estimated to be $1.7 trillion. According to the Masterworks all art index, contemporary art has outpaced the S&P 500 by 131% from 1995-2021. 

 

Masterworks is the largest platform for buying and selling shares in masterpieces by Banksy, Basquiat, Warhol, Picasso, KAWS, and more. By investing in fine art, you can build a diversified portfolio that has been shown to appreciate during high inflation periods.

 

Masterworks was founded in 2017 by internet entrepreneur and art collector Scott Lynn with the mission to “make art investable”. As of 2022, Masterworks is valued at over $1 billion and is one the largest art buyers in the world with over $500M of artwork acquired.

High Growth

43% appreciation over the past 5 years

Low Correlation

0.12 correlation to the S&P 500

Equity

Shares in securitized artworks

Pros & Cons

The Good
  • Low minimum investment for fine art

  • Iconic artworks are pre-vetted by Masterworks’ expert team

  • Professional storage, insurance, appraisals (and other costs) covered by Masterworks

  • Easily trade shares on the secondary market with no transaction fees

The Not-So-Good
  • 1.5% annual management fee and 20% commission on future profits

  • You must conduct a phone interview to finalize your account

  • There may be a waitlist to join

Masterworks Track Record

130+

Artworks Acquired

From Banksy to Picasso

29.03%

Net Annualized Returns

Across 6+ exits

$500M

AUM

Built up over 5 years

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Returns Calculator

Calculate how much you can earn by investing in Fine Art. Results vary based on the investment amount, term, and other conditions.

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%
years
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Frequency
Monthly

Invested

$16,000

Projected Fees

$1,306.97

Projected return

$6,614.09

Value after fees

$22,614.09

How it Works

Here’s how Masterworks lets you buy shares in modern masterpieces.

Here’s how Masterworks lets you buy shares in modern masterpieces.

1

Masterworks chooses the artists

Their research team uses proprietary data to find artist markets with the most momentum.

2

Masterworks buys the art

Their acquisitions team buys the artist’s best available work at an attractive price.

3

Masterworks securitizes the artwork

Masterworks turns the artwork into an SEC-qualified offering that you can buy fractional shares in.

4

You hold long-term or trade your shares

You can wait 3-10 years until Masterworks sells the painting, or sell your shares on the secondary market.

See inside MoneyMade’s 6-figure multi-asset portfolio

6-Figures

12+ Assets

50+ Platforms

4yr+ Returns

How You
Make Money

Masterworks holds artworks for 3-10 years to maximize returns and then sells them to auction houses, private collectors and galleries.

Once Masterworks sells a painting, you receive your share of the proceeds (minus selling expenses). If you’d like to exit your investment sooner, you can sell your shares on the secondary market with $0 in transaction fees. 

However, there’s no guarantee that the secondary market will have enough liquidity.

Primary Sale

Masterworks sells the painting

Secondary sale

You sell shares on the secondary market

How Masterworks
Makes Money

Masterworks charges a 1.5% management fee per year, taken as equity in the artwork and not cash from investors.

Management fee covers the cost of:

  • Professional storage
  • Insurance
  • Administration
  • Regulatory filings
  • Annual appraisals

 

Finally, Masterworks charges 20% commission on future profits generated by art sales.

1.5%

Fee Per Year

This covers storage, insurance and other costs.

20%

Future Profits

Masterworks is aligned with investor interests to maximize returns.

How You’re Taxed

Masterworks’ securitized artworks are structured as limited liability companies registered in the Cayman Islands. 

Investors that hold shares in these companies are sent a Form K-1 following the end of each tax year. However, investors are not expected to generate taxable income until one of their artworks is sold at a profit. 

But each investor’s tax obligations will vary based on unique circumstances like their tax bracket. For more clarity, consult with an advisor before making an investment.

0-31.8%

Capital Gains

You can lower your tax rate by holding the artwork for at least one year

Meet the Team

Masterworks has 100+ employees with experience across art, finance, and technology. Masterworks founder, Scott Lynn, is an early Internet entrepreneur who made his name in the online advertising space. Over the years, Scott became an internationally-recognized collector of contemporary art by Mark Rothko, Willem de Kooning and more—founding Masterworks in 2017 to democratize access to art investing.

Masterworks

4.7

(6 Reviews)

Art

Here's what you'll need to invest in Masterworks.

US and non-US residents
Non-accredited and accredited investors
Over 18+ years of age
US and non-US residents
Non-accredited and accredited investors
Over 18+ years of age

Reviews

4.7
  • 5

    5

  • 4

    3

  • 3

    1

  • 2

    0

  • 1

    0

L

Lon

Works great so far, but I've really only transferred some money into our savings account at this point. Hopefully the rest of the app is just as well designed and as easy to use...

B

Bloodlord

👍

J

James

Way more asset classes than their competitors and a clean and professional experience throughout.

FAQs