Sophisticated investors look to alternative investments for higher return potential and to diversify their portfolios with assets that have little correlation with the stock market.
Contemporary art is a type of alternative investment that is attracting increased interest. This is not surprising given that this asset class is estimated at $ 1.7 trillion and with an annual return of 14% over the past 25 years, according to a study conducted by Masterpieces, and 23% annual returns during years of high inflation.
Investing in this type of artwork has historically been reserved for the ultra-rich since the most in-demand pieces sell for millions of dollars.
Masterworks has created a platform where accredited and non-accredited investors can purchase shares of carefully selected iconic works of art, providing retail investors with access to this exclusive asset class.
Most recent offer: The latest offering from Masterworks is for “Untitled (1984)” by Keith Haring. The 60-inch by 60-inch painting depicts a larger-than-life central orange head with multiple expressive faces on a blue background. It’s a brilliant and detailed example of Keith Haring’s signature style, and as of August 30, 2021, it had been on display at five institutions.
Highlights of the investment: Haring’s best works on canvas have sold for over $ 5 million at auction, including “Untitled (1986),” which measures the same size as the current offering and was recently sold for $ 5,779,200 in May 2021 at Sotheby’s in New York.
Offer size: $ 3,441,000
Price per share: $ 20
Annualized returns of similar works: 17.8%
2020 Artist Auctions: $ 28,793,658
How returns are made: Masterworks will hold onto the board until the company has identified the best time to sell, which is typically three to ten years. Investors also have the option of selling an unlimited number of their shares on the Masterworks secondary market after a minimum holding period of 12 months.
About the artist: Keith Haring (1958-1990) learned to draw from a young age from his father and attended the Ivy School of Professional Art and the School of Visual Arts after graduating from high school.
Haring first became known for the white chalk drawings he executed on black poster paper and pasted all over the New York subway. Michel Basquiat, Nan Goldin and Jenny Holzer.
The artist’s market has grown considerably over the past decade, but still lags behind close and contemporary friends Andy Warhol and Jean-Michel Basquiat, who have seen prices exceeding $ 100 million at auction.
How to invest: Investors can access this offer, as well as other current art offerings, by creating an account on the Masterworks platform.
See important disclosures. See the offer circular here.
We “test the waters” under Regulation A under the Securities Act of 1933. The information on the Masterworks.io website has been prepared by Masterworks without reference to investment requirements or the situation financial information of a particular user. Potential investors are encouraged to consult professional tax, legal and financial advisers before investing in any Masterworks offering. All investments involve risk, including the risk of losing all of your invested capital. Please carefully consider the investment objectives, risks, transaction costs and other expenses associated with an investment before deciding to invest. Diversification and asset allocation do not guarantee profit or guarantee against loss. Investment decisions should be based on an individual’s goals, time horizon and risk tolerance.
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