Through a company structure, individuals are able to buy shares in iconic artworks that might otherwise be out of reach.
Read on to discover how fractional ownership works, the benefits of fractional art investing, and how it is changing the way people invest in high-value assets.
Fractionalisation refers to the division of a large asset into smaller portions, allowing investors to own a fraction of the asset instead of the entire item. This concept is especially relevant in alternative investments, such as investing in artworks, where the cost of a single piece can be prohibitively high for individual investors.
While the cost of a multi-million-pound artwork may seem out of reach for many individual investors, fractional ownership provides a more attainable option for those interested in investing in high-value assets. By allowing investors to own just a portion of the artwork, fractional investing makes it possible for a wider range of individuals to invest in iconic masterpieces and benefit from their appreciation over time.
Mintus sets up each artwork as a company structure. When an investor buys shares in a painting they are buying part of a company, just like traditional equities. The difference is this company’s value is determined by one asset- an artwork.
By using a company structure, investors have access to multi-million pound artworks for a fraction of the cost. This structure also means investors assets are ring-fenced from Mintus and in the worst case scenario of Mintus’ insolvency, each company has a Board of Directors that will see the out the lifetime of the investment.
Fractional ownership offers several benefits for investors:
Fractionalisation and tokenisation are two distinct concepts in the world of alternative investments. The key difference between fractionalisation and tokenisation is the method of investment: fractional ownership uses traditional financial instruments such as physical currency, shares and contracts, while tokenisation involves the creation of digital tokens that takes place on a blockchain platform.
While both fractionalisation and tokenisation serve to increase accessibility and liquidity in alternative investments, fractionalisation offers a number of unique benefits, such as providing investors with a more established and tangible connection to the underlying asset and a sense of stability and reliability.
Ultimately, however, the choice between the two concepts will depend on individual investor preferences and priorities.
There are many alternative assets available for fractional investment that offer unique opportunities to invest in passion projects and different markets.
One such alternative asset is sports memorabilia, including jerseys, mitts, trading cards, and ticket stubs. However, the market for sports memorabilia has been hit hard in 2022, with many assets trading at less than half of their initial public offering (IPO) value. This lack of a proven track record and potential for negative returns has raised concerns about the health of the sports memorabilia market.
Another alternative asset that has become more accessible through fractional investing is real estate. While the average person may find it difficult to invest in physical property, fractional investment platforms like Here and Futurent offer investors the opportunity to invest in vacation homes, farmland, and even digital property, such as land in virtual worlds like Decentraland.
Luxury goods, such as Hermès bags and jewelry, are another asset class available for fractional investment. The market for second-hand sneakers, particularly those worn by celebrities, has exploded in recent years, with some pairs selling for millions of dollars. While this promises high returns, the lack of infrastructure to verify product authenticity and a relatively short track record for the market have raised concerns about potential fraud and eroded confidence in the market.
The art market on the other hand, had a great 2022, with a record $7.5 billion worth of total auction sales of Old Masters, Impressionist, Modern, Post-War, and Contemporary Art at Sotheby’s, Christie’s, and Phillips. That props up the truism that art is a safe haven in times of economic uncertainty, and suggests that high-quality artworks are still a good long-term investment.
We welcome any owner who wants to unlock liquidity from their collections to contact our Fine Art Team. This includes individual investors, galleries, institutions, and artists. Please reach out if you're interested in listing your artwork on the Mintus platform.
All artwork offered by Mintus is stored in climate-controlled, specialist art storage facilities, under a Mintus account. Current paintings are held in a facility in Delaware.
Artwork is acquired through our unique relationships with the world’s most renowned collectors and galleries. Our Fine Art Team marries their own expertise with insights from fellow industry experts to identify one-of-a-kind investment opportunities from established artists with high-growth potential. Our team examines metrics such as the artist’s market track record, recent price velocity and momentum, and the size of their international collector base when making investment decisions.
If you need support you can send an email to email@example.com or schedule a call using the links on each page of our website. If you need to make a complaint you can write to firstname.lastname@example.org. A description of our complaints policy is set out in the Investment Terms & Conditions for each investment.
Mintus Trading Limited is authorised and regulated by the Financial Conduct Authority in the United Kingdom under firm reference number 942522. For more details on our regulatory permissions please see the Financial Services Register.
For more information on risks, see the Memorandum for the relevant artwork and the important disclosures.
Mintus does not sell NFTs. NFTs are digital assets. Mintus enables qualifying investors to participate in the art market by purchasing interests in high value, physical artworks. Mintus’ platform facilitates investment in real, iconic artworks created by established artists.
Mintus will introduce a Secondary Market for investors in permitted locations, which will facilitate selling of shares to buyers, dependant on demand.
According to the regulations, certain investments can only be made available to investors who fall within these categories and Mintus must also follow appropriateness requirements when registering investors.
Fees are dependent on the specific artwork and the specific structure of the investment opportunity. Fees are clearly shown in advance for each artwork / investment opportunity, as displayed in the Memorandum that relates to the artwork / investment opportunity; this document is available to download from the profile of each artwork under the Opportunities section.
Both individual investors and institutions can invest in artworks. Individual investors will need to declare themselves to be ‘high net worth individuals’, ‘sophisticated investors’ or 'accredited investors' during the account creation process. Individual investors will also need to pass an appropriateness assessment. Professional investors including wealth managers, private banks and family offices should contact our team for more information on investing as an entity or managing multiple client accounts on the platform.
For the opportunities listed, a minimum investment of $3,000 is required however investments can be for any amount above this and generally range from $15,000 to $100,000. International payments are accepted.
Funds can be sent from any denomination into our USD bank account. We will show you the estimated cost in your chosen currency during the investment process, however this may change at the point of transfer, and does not account for fees charged by your bank. When transferring, your bank may show an estimated conversion; alternatively the funds can be sent in your local currency and converted at the point of receipt. Other transfer services such as Wise display exact fee and currency conversion rates to ensure you're sending the subscribed amount.
Mintus does not provide tax advice. We recommend that investors obtain their own tax advice as every person has specific tax circumstances. Generally, income and profits generated from your investment can be subject to either income tax or capital gains tax (depending on the individual investor and the specific structure of the investment). Artworks are not income-generating during the period they’re held. If you are unsure about your tax or other legal requirements, please speak to a professional advisor.
Not directly. In order to take an investment from one artwork to another, shares would need to be sold to a willing buyer on the future Mintus Secondary Market and then proceeds reinvested on the platform. The Secondary Market will only be available in permitted locations.
Typically, valuations occur at the end of June and December, with reports distributed to investors as soon as possible thereafter.
All actions in relation to the asset are at the discretion of Mintus. Mintus will communicate with investors on a six-monthly basis with an update on the net asset value, and any further news will be communicated on an ad-hoc basis.
Distributable profits will be made available to investors as soon as possible, once all sale-related administration is complete.
Profits will be received into your Mintus wallet, with the option to withdraw the profits into a bank account or reinvest on the Mintus platform.