An alternative investment platform that provides a way for anyone to invest in multi-million dollar masterpieces from artists like Pablo Picasso, Claude Monet, Andy Warhol, and more.
Masterworks starts by buying a painting after a careful review of the historical appreciation rates for similar works. Once Masterworks has bought the painting, it will file the painting as a qualified security offering with the Securities and Exchange Commission. Next, it will make shares of the painting available for investors to buy. Masterworks plans to hold the paintings for a five to ten year period to allow the returns to grow, though offers to buy the painting may come at any time. When Masterworks receives an offer for the painting, the shareholders will be able to vote to sell or not. If the majority of shareholders agree to sell, then the sale will proceed. At that time, any net proceeds will be distributed to the shareholders. The process from investment to receiving your return could take several years with no quick way out. Due to this, any investment through Masterworks would be qualified as illiquid. Keep that in mind as you consider this investment strategy.