Masterworks is the first and only platform of scale to provide art-based securities to the investor community. Headquartered in New York City, a fully-integrated team of 150+ employees researches, sources, and manages a portfolio of blue-chip, contemporary artwork. It is one of the biggest buyers in the art market, with $430M+ worth of acquisitions since inception across 115+ artworks from over 35 artists. The unique structure of retail, wealth management, and institutional distribution channels allows Masterworks to capture self-directed, non-traditional art market participants while providing access to contemporary art as an asset class for investors. The platform aims to provide long-term, uncorrelated capital appreciation through both single-asset securities available to self-directed investors and a diversified portfolio available to wealth managers and institutional investors.
Art as an Asset Class
Masterworks is the leading investment institution that utilizes a quantitative and macroeconomic research team to analyze returns on art as an asset class. Masterworks has collected data from 340,000+ auction transactions and 4,800+ works in the private market. By analyzing price, artist momentum, and historical appreciation rates, the research team identifies target segments and artist markets for acquisition opportunities. Masterworks has also built innovative indices to analyze the various segments of the art market and how art compares to other asset classes historically. By securitizing artworks via Reg A and Reg D offerings, structures familiar to the financial advisor community, Masterworks brings the art market closer to advisors and client portfolios.
Ecosystem of Art-based Product Solutions
Masterworks is the only platform to provide investors exposure to the art market through the unique structure of retail, wealth management, and institutional distribution channels. As a technology-enabled platform, Masterworks operates many functions of a product ecosystem in-house. It issues art-based products through Reg A and Reg D offerings and operates a secondary market, allowing investors the ability to trade their shares. By establishing intermediary distribution channels, Masterworks not only services self-directed, non-traditional art market participants but also provides access to a new asset class for investors. It is on track to become the conduit for investors to access the art market, as it connects art world incumbents, such as auction houses, dealers, galleries, and artists, to end collections through self-directed services, advisors, and institutions.
Diversified Art Portfolio
In 2021, Masterworks launched Masterworks Collection 002, LLC, which provides diversified exposure to art by buying securities in single-asset issuers launched on its platform. The underlying single-asset issuers have previously been qualified with the SEC at the individual artwork level. The Collection will hold contemporary and post-war paintings with a historical price appreciation of 10%+ at purchase prices of $500K to $30M. This offering will be available only to accredited investors with no capital calls, in contrast to the traditional PE funds with extended multi-year capital calls.