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The Artworks Exit

Eleonora Mantovani - 8th January 2020 - 0 comments

Each good thing must come to an end, the same goes with the artworks’ journey on the Feral Horses platform. After a minimum of 2 years, depending on each specific case, an artwork enters the “exit stage”. What that means is that the piece is ready to be sold to a single buyer and leave the platform. That’s actually good news! 

How does the exit stage work?

When an artwork gets sold to its co-owners on our platform, either the seller or Feral Horses manage the asset and exhibit it where the public can see it over a period of time. This has the purpose of both having the public enjoy the artwork as well as supporting the chances of the artwork gaining in value over time.

Once the management period is over – and we’ve all collected many beautiful memories with the artwork 😄 -, Feral Horses starts to accept offers to buy 100% of the artwork from the co-owners.

Feral Horses has the purpose of doing right by both the co-owners, as well as the artist, we’ll therefore carefully assess offers and accept the most satisfactory one. Once the new buyer is identified, the sale is validated and the ownership is transferred from the co-owners to the new buyer. All co-owners of the artwork will be notified once Feral Horses decides to accept a buy offer.

The proceeds from the sale are then proportionally distributed to all the co-owners of the artwork, depending on the number of shares in their possession. Feral Horses will work towards the goal of increasing the artwork value and sell it at a profit for its co-owners 🥳, but as for any investment activity, there is also the chance of not realizing any gains or potentially netting a loss.

In the case of a successful exit where a profit is realized, the allocated proceeds will be sent to each co-owner. This is currently done directly on the bank accounts. For this reason, it is important that every user updates its bank account information in their Profile Section.

What’s in it for Feral Horses?

Feral Horses takes a 10% commission on the profit generated. 

The profit is intended as the difference between the exit sale price minus the price of the artwork when it was first sold on the platform. In case of no gains or losses, Feral Horses will not receive any commission, we’re all in this together.

Let’s make a simple example:

Artwork “Blue” gets sold on the Feral Horses platform for £100,000 divided into 10,000 shares, at the initial fixed price of £10 each.

After 4 years, Feral Horses receives an offer to buy 100% of the artwork for £180,000. Feral Horses accepts the offer and sells the artwork.

The profit generated is £180,000-£100,000 = £80,000.

Feral Horses takes a 10% commission on the profit which in this case equals to £8,000.

The amount distributed to the co-owners is £180.000 – £8,000= £172,000 or £17.2 per share. Amounting for a net gain of £7.2 per share.
But first things first, to get to an exit one needs to become a co-owner first.

Join us and check out the active campaigns on Feral Horses to start building your portfolio now.

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