American art collector Thomas Kaplan has announced plans to sell shares in his private collection of Dutch 17th-century masterpieces, promising to make works by artists like Rembrandt accessible to ordinary investors. The concept, known as "fractional ownership," allows multiple people to own portions of expensive artworks, similar to buying stocks in a company. Kaplan's collection is reportedly the world's largest private collection of Dutch Golden Age art.
The fractional ownership model has already been applied to luxury items like rare sneakers and vintage cars, and is now making its way into the art market. According to Dirk Boll, an art market expert from Christie's auction house in London, the concept involves dividing ownership of an object among many owners. "Anyone who has ever bought a stock knows this - it's a comparable process," Boll explained.
Kaplan markets his initiative as nothing less than the "democratization of the art market." He argues that people who don't have millions to invest in major names like Rembrandt, which are considered particularly safe investments, should have the opportunity to do so through fractional ownership. However, experts question whether this approach actually benefits art enthusiasts or serious investors.
Michael H. Grote from the Frankfurt School of Finance and Management doubts that shares in artworks are suitable as investments. The finance expert emphasizes that the fundamental problem with art as an investment is that the artwork itself doesn't generate money, unlike a company stock that can produce profits and pay dividends. "You can only make money with art if it's sold for more than the purchase price," Grote noted. He explained that art values depend heavily on trends and speculation, such as whether an artist will still be in demand in ten years. Such investments are "quite risky and unsuitable for investing larger sums," he concluded.
Boll agrees with this assessment, noting that there are generally easier ways to invest money because other markets are more transparent, such as the stock market. He also pointed out that art markets are not centrally regulated, making the market more opaque. "If you have a stock portfolio with your bank, it's something you can track much more easily, and it might also bring you lower costs during the holding period, because you don't have to insure stock ownership," Boll explained. Transaction costs are also lower for stocks compared to art.
Regarding the argument that fractional ownership makes the art market more transparent overall, Boll remains skeptical. According to the expert, only individual areas might benefit: "For example, if this purchase comes with the right to be informed about major changes in the ownership structure of this work, or questions like loans to museums."
Berlin's art scene actors remain largely skeptical of the concept. Art collector Christian Boros rules out selling shares in his artworks. David Bassenge from Berlin's Bassenge auction house also sees no major impact from fractional ownership on his work. While he finds the model interesting, he considers it a side aspect for now. "Actually, this doesn't play any role in our daily business and also misses the actual purpose of art acquisition for most people," Bassenge said. He believes that for the vast majority of people, art enjoyment or curatorial participation in art takes precedence over pure investment.
Bassenge also views the supposed democratization of the art market critically. "I would say that democratization of the art market is naturally a great buzzword," he noted. However, he emphasizes that the art market is already affordable for more people than it often appears in public perception. According to Bassenge, 90 percent of the art market already takes place well below 100,000 euros, with over 50 percent in the three or low four-digit range.
Alternative approaches to art democratization already exist in Berlin. At the art library (Artothek) of the New Berlin Art Association, any Berlin resident can borrow artworks for their home for just 6 euros for three months. Visitors can choose up to six paintings, photographs, or sculptures from more than 1,400 contemporary works. For Lidiya Anastasova from the Artothek, the focus is on the joy of art and sharing rather than ownership. "There's another level of generosity in culture, where people simply borrow certain artworks temporarily, return them, and then make them accessible to other people again," she explained. "It's about circulation and not this clinging to ownership."
The debate over fractional ownership reflects broader questions about accessibility and democratization in the art world. While proponents argue it opens investment opportunities to smaller investors, critics worry about the financial risks and question whether it truly serves art appreciation or merely creates new speculative markets. As the concept gains attention, the art world continues to grapple with balancing exclusivity with accessibility, and investment potential with cultural value.
