Amid the pandemic, demand for fractional ownership of art, luxury goods including collectible cars, and even racehorses is skyrocketing.
All companies that took part in the Bloomberg poll report significant growth in both the number of investors and the amount they are willing to invest in equity financial assets. For example, the site Masterworks, which sells stakes in the works of artists such as Banksy, George Kondo, and Zhao Wuji, registered about 10 thousand new users in the first month of quarantine.
Against this background, the company has acquired 15 works since March for a total of $ 31.8 million – compared with 5 works in the previous two years of existence.
For example, a $ 1.52 million work by popular graffiti artist KAWS sold out piece by piece in a matter of hours. After the purchase, the works will be allowed to rest for at least seven years, after which they will be resold. For those who are particularly impatient, Masterworks has the option to resell shares.
And Acquicent, a classic car shareholding company, reported an 80% increase in potential investors over the past 3 months. Anthony Citrano, founder, and CEO of Acquicent says this is an asset class typically out of reach for 99.9% of people. Now it is at its peak – amid growing interest in investment.
Since April, the number of investors has tripled for MyRacehorse, which has relied on thoroughbred horses. More than 12,000 equity owners zoomed in on the recent races at California’s Santa Anita Park racetrack.
In June, the company acquired a 12.5% stake in the Authentic stallion, trained by eminent buster Bob Buffett. The entire Authentic is valued at $ 15 million.
Equity investments have even penetrated the fields of collectible sneakers and comics. Otis offers stakes from $ 10. Their most valuable asset is Banksy’s $ 425,000 work.
The idea of fractional ownership of art or luxury goods has been around the world for quite some time. But against the background of the pandemic, interest in it only grew for quite understandable reasons: those who had to stay at home, but at the same time kept their jobs, free funds appeared.
At the same time, unlike playing on the stock exchange, participating in the purchase of a painting or a car is a new interesting experience and the pleasure of owning something unique