Masterworks

Masterworks

5.0

(6 Reviews)

Art

Masterworks

Masterworks

5.0

Art

Invest in multimillion-dollar paintings by Banksy, Basquiat, Warhol and more from $10k. 

Highlights

-2.27%

Asset Class Return30d

#0 Rank

In Art30d

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Invest from

$10K

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Overview

Invest in multimillion-dollar paintings by Banksy, Basquiat, Warhol and more from $10k with Masterworks. Masterworks has achieved 29.03% Net Annualized Returns across 6 exits. Masterworks has 500k+ users and $500 million+ in artworks acquired since 2018. Buy and sell shares on Masterworks’ secondary market. Access Masterworks’ members-only art gallery in Soho.

Things to Know

  • You make money on

    Value

  • Fees

    1.5%

  • Min Investment

    $10,000

  • 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 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 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

    $500M

Reviews

4.7
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Reviews (3)
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5

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William Erlanger

Republic is awesome for all investors, but especially for non accredited investors looking to get exposure in startups. Using autopilot, you are able to diversify your startup portfolio with cheap minimums. Although you do not directly pick which startups you invest in with autopilot, you are able to cancel your investment if you do not like the startup that Republic chooses for you.

Republic allows companies like Uprightoats on their platform to take investments, keep them for 2 months and pick and choose investors dumping some by cancellation. Probably dumping investors who made minimum investments and keeping others who were more generous. Stay away from investing here unless your only goal is to getting a free package of product and/or t-shirt for your minimum investments