Masterworks

Masterworks

5.0

(6 Reviews)

Art

Masterworks

Masterworks

5.0

Art

Art investment platform with $60M+ in net proceeds distributed back to investors.

Highlights

-20.99%

Asset Class Return30d

#0 Rank

In Art30d

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Overview

Invest in multi-million dollar artworks from renowned artists like Banksy, Basquiat, and Warhol with Masterworks. Art investing for all. Masterworks is the first platform for buying and selling shares representing an investment in iconic artworks.

Masterworks has 500K+ users, $750M+ in artworks acquired since 2018, and 29.03% Net Annualized Returns across 6 exits. Every one of their 13 exits has been profitable so far, with recent exits delivering +10.4%, +13.9%, and +35.0% net annualized returns. 

Masterworks team of experts, led by a Harvard data scientist, has created a proprietary database designed to help find excess “alpha” in the art market. 

Things to Know

  • You make money on

    Value

  • Fees

    1.5%

  • Min Investment

    $0

  • Payout frequency

    Asset sold

  • Term of investment

    60+ months

  • Target Return

    10% - 25%

  • Liquidity

    Easy

  • Open to

    All Investors

  • Mobile Application

    No

Top Perks

  • Fine art beat the S&P 500 by 180% from 2000 - 2018

  • Recent sale returned 32% in under 12 months

  • Sell your shares at anytime on their Trading Desk

How you make money

You own shares of artwork, and when that artwork appreciates in value, you gain a return. Masterworks' team of experts targets artists whose work has historically achieved a 9% to 15% annual return. There are two ways you can cash out: when the artwork is sold by Masterworks, or by selling your shares on their secondary market (think the stock market for art). Masterworks aims to hold paintings for three to seven years while they increase in value. Meanwhile, each painting is displayed in a members-only art gallery in SoHo, New York. When the time is right, paintings are sold to private collectors or at auction. The proceeds are then divvied up across shareholders. If you don't want to wait that long, Masterworks’ Secondary Market trading platform lets you sell (or buy) your shares at any time. 

How Masterworks makes money

Masterworks charges an initial 10% premium, 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?

Artwork investing can be highly volatile and is never guaranteed, but the acquisition process, insurance, and SEC registration Masterworks undergoes should allow you to invest confidently. Their research team identifies artist markets that are gaining momentum and yielding the best risk-adjusted returns. The team sources these artworks from collectors, advisors, galleries and dealers and buys them at the best price possible. 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. After that, it's assessed for sale potential. Each piece is insured in case of damage, theft, or other potential events that could impact the assets.

  • Established

    2017

  • Country Available

    Worldwide

  • Assets Managed

    $800M

Reviews

4.7
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Reviews (6)
V

V L

5

R

RK

Love it!

Solid investing platform