Masterworks vides an opportunity for investors to invest in blue-chip artworks by renowned artists, such as Basquiat, Warhol, and Koons, without having to buy the entire artwork themselves.
Instead, investors can purchase s in a specific artwork, allowing them to own a fractional interest in that piece.
By in art through Masterworks, individuals can access an asset class that has historically demonstrated strong long-term returns and low correlation to traditional financial .
This can help investors spread their risk and potentially achieve higher returns over time.
Moreover, Masterworks leverages its expertise in the art market to carefully select and acquire artworks that have the potential for significant value appreciation, offering investors the chance to fit from the art market without the hassle of managing an art collection.
In this article, we review Masterworks’ offerings, usability, customer support, returns, fees and educational support to help you decide whether you should use this art platform.
Reasons to UseA dedicated art membership rep who will help you invest and answer questionsClean, attractive, easy to use platform design for desktop and mobileTrack record: 9 - 39% net annualized returnsMasterworks manages the entire cess of sourcing, purchasing, and storing artworkPotential DrawbacksRequires a phone call before you can investHedge fund fees can be confusing for new investorsOfferings sell out quickly due to demandDetailsOpen to Non-Accredited?: Yes Minimum Investment: $15,000 Fees: 1.5% annual management fee Masterworks Review Ratings at a GlanceMasterworks Fees, Commissions and Account MinimumsMasterworks UsabilityMasterworks EducationMasterworks Customer SupportMasterworks Overall RatingTable of ContentsWhy Choose Masterworks?Masterworks Quick Summary Masterworks OfferingsSee All 11 ItemsWhy Choose Masterworks?Why invest with Masterworks?
Some of the best reasons to open a Masterwork account include:Easy data location: Masterworks’ platform is well-designed and SEC and bank documents are easily available.Unique method: Masterworks offers a unique platform and method.
It registers major works of art as entities with the SEC.Unique asset class: Masterworks offers one of the most affordable ways to invest in multimillion-dollar art.Masterworks Quick Summary Tradable assetss of famous works of artPlatformEasy to understand — with art re toolsInvestor requirementsNon-accredited investors allowedHistorical returns9-39%Mobile appAvailable for iOS, AndroidWe retain complete discretion to determine that rs are “qualified purchasers” (as defined in Regulation A under the Securities Act) in reliance on the information and representations vided to us regarding their financial situation." Masterworks OfferingsMasterworks offers investors the opportunity to invest in works of art by some of the world’s most well-known artists.
But how does Masterworks decide what’s worth in and what will increase in value in the fine art market?The Masterworks investment cess is as s:Masterworks identifies a work of art its team is interested in purchasing: Masterworks focuses on purchasing artwork from “blue chip” artists — artists whose artwork has a history of imving value and maintains relatively high auction prices.
Think Claude Monet, Andy Warhol and contemporary favorites Yayoi Kusama.
Masterworks then puts up its own capital to purchase the piece of artwork.Masterworks files the artwork with the SEC: After Masterworks takes control of the work of art, it registers the artwork with the SEC.
You can view the SEC filing and offering circular from the artwork’s file page on Masterworks.Masterworks offers s to its users: After registering with the SEC, Masterworks offers members on the platform the chance to invest in s of the artwork.Masterworks keeps your artwork safe and sound: Masterworks then holds the work of art in a temperature-controlled, museum-grade gallery.
Masterworks waits for the artwork to appreciate in value and actively es for an investor to sell the work of art at a fit.
In exchange, you pay 1.5% of your total balance in fees to cover storage and insurance.You receive a payout: After 3 to 7 years, Masterworks may sell the painting to an investor or at auction.
You’ll receive your portion of the fits, which is portional to the number of s you’ve invested in.Source: Masterworks websiteMasterworks also vides liquidity via a secondary market where you can potentially sell your s to other investors through the Masterworks bulletin board feature.
However, Masterworks cannot guarantee that there will always be a buyer for your s.Source: Masterworks websiteMasterworks ReturnsThere's no guarantee that an investment in artwork will duce a positive return on investment, however, since its inception in 2017, Masterworks has a track record of a 14.3% internal rate of return (IRR), net of fees, as of March 31, 2022.The platform has exited seven investments that have duced a net realized IRR of over 30%.Source: Masterworks websiteIt's important to keep in mind that each investor's returns also depend on whether they hold the investment until the painting is sold or they decide to liquidate some, or all, of their s early through the secondary market.Masterworks Fees, Commissions and Account MinimumsWhen you invest with Masterworks, you invest in s of a particular work of art.
The minimum amount that you’ll need to invest varies depending on the work of art you’re in and no individual investor may own more than 10% of any individual work of art.After Masterworks has purchased the painting, it holds it in a stored location for safety and insurance reasons, which keeps your investment tected.
From there, Masterworks actively attempts to sell the painting at a fit to art collectors and investors.
At no point is there a guarantee that you’ll receive a return on your investment, but Masterworks does actively vet investments and only offers works from established artists.
But so far, Masterworks has dered strong results to their investors. Seven of their eight exits have returned over 17.5% to investors.Before you invest, it’s important to understand Masterworks’ fees.
Currently, Masterworks charges two separate fees to investors:Annual management fee: You’ll pay a 1.5% annual management fee for each year you invest with Masterworks.
This fee goes toward expenses art insurance, storage and transportation.fit-taking: When Masterworks sells the work of art, the platform takes a flat 20% commission if the painting has increased in value.Different standards apply to institutional and investors.Masterworks UsabilityBefore you can invest in your desired artwork, you’ll need to complete a quick phone interview.
When we tried to , we were told that we were #310 on Masterworks’ waitlist.
Investors eager to get in on the art market fast may want to now to hold their place.Once you make your way into the platform, you’ll enjoy a simple and lined design.
Some of the things we love Masterworks include:Upfront metrics: If you’re only interested in browsing by works that will definitely be funded, you’ll love Masterworks’ direct and upfront funding calculator.Simple bank linking cess: After you create your Masterworks account, you’ll be directed to link your bank account directly from your Masterworks page.
Though you can’t link your account and begin purchasing until you complete your required interview, you won’t have any trouble finding necessary forms or access points when you’re ready to start .Easy-to-find SEC filings: The best place to learn more Masterworks and its offering requirements is by checking out each piece of art’s SEC filing.
You can view SEC filings for every piece of art currently available for directly on its page.Masterworks EducationMasterworks offers a few interesting ways to learn more in the art market and the pieces of artwork currently available on the platform.
Some of the educational features we love include:Brief biographies of each artist: Masterworks makes it easy to learn more the life and history of the artists whose paintings it offers.
Each piece even includes an additional “Further Reading” section with materials to help you learn a little more the context of the piece up for sale.Learn more both classic and contemporary artists with Masterpiece’s brief crash-course in each artist’s background.
Masterworks price database: You can take a look at all of the artists and their paintings in Masterworks’ unique price database and view the return of thousands of paintings and artworks.Masterworks Insights: You may assume that Masterworks’ “Insights” is a blog just created for engine optimization purposes rather than viding actual information, but this assumption is incorrect.
Masterworks Insights is a hub of gripping, well-reed and informative . The tone of Insights’ offerings is easy enough for total beginners to understand and each article brings a new perspective.
Some previous article topics include deeper dives into artists’ histories, the benefits of adding art to your portfolio, ideas for in art on a budget and much more.The Insights section also includes a third-party re section that aggregates outside news from a variety of well-known sources focused on art.
Here, you’ll find from Barclays, Morgan Stanley and Deloitte, to name a few.
Article offerings are d frequently, so don’t be afraid to check back every few days to see what’s new.Auction sales data and public re reports: Masterworks offers investors historical auction data for each of the artists it features.
It also offers reports on the current state of the global art market, published regularly by sources Citi GPS and Deloitte.
These reports are different than daily news offerings because they cover larger art trends in more depth as the market moves and changes.Masterworks Customer SupportMasterworks currently offers 2 ways to get in with its customer service team.By phone: You can get in with Masterworks by calling 203-518-5172.
Masterworks customer service team is available from 9 a.m. to 6 p.m.
EST.By : Get in with Masterworks by — send the team a message at support@masterworks.io.Another unique bonus: You’ll get your own dedicated representative who can answer your questions at any time.
Un most investment platforms, you get access to your own personal Masterworks membership representative whenever you want.Masterworks Overall RatingVery few Americans can afford to own a quintessential Jackson Pollock painting or one of Cecily Brown’s beautiful works of art.
Masterworks allows investors to get in on the art world at a fraction of the cost.
of purchasing one of these ground works of art at auction.You’ll also need to be ready to complete a quick phone interview to verify that you are who you say you are, which may be a bit of a hassle for investors who are used to 100% online cesses.Where it loses points in fees and account cesses, Masterworks makes up in concept and style.
Its platform is well-organized and easy to navigate, with important documents front and center.
Linking your bank account is a snap, and you can begin browsing available investments before you finish confirming your account.
Masterworks’ “Insights” page and price database are also surprisingly informative, with fun, easy-to-read on everything from the current state-of-the-art market to art history and theory.It’s important to remember that Masterworks isn’t a one-stop shop for retirement and long-term .
Even a Warhol or Van Gogh has the potential to lose value.
If you do decide to open an account with Masterworks, use it to supplement another standard brokerage account.Should You Invest in Art Through Masterworks?
in art through Masterworks can be a strategic way for investors to add diversity to their investment portfolio, potentially enhance their returns, and gain exposure to the art market without the need for a substantial initial capital outlay.
With a focus on transparency, liquidity, and expert curation, Masterworks offers a compelling opportunity for art enthusiasts and investors a to participate in the art market and potentially benefit from the appreciation of iconic artworks.Frequently Asked QuestionsQDoes Masterworks actually work?
A Yes, Masterworks offers a unique opportunity for investors to diversify their portfolios with an alternative asset class that has historically shown strong returns.
By in prestigious artworks by renowned artists Banksy, Basquiat, and Warhol, investors have the potential to benefit from the appreciation of the art market over time.
Masterworks carefully curates its selection of artworks, ensuring that investors have access to high-quality pieces with growth potential. QCan I sell my Masterworks s?
A Yes, Masterworks offers a secondary market where investors can list their s for sale to other users on the platform.
However, there are certain criteria and restrictions that govern the sale of Masterworks s. QWho owns Masterworks? AMasterworks is a private company founded by Scott Lynn in 2017.
Scott Lynn is a seasoned entrepreneur and art collector who saw an opportunity to democratize the art market by fractionalizing ownership of valuable artworks.