In thinking through fractional investing, I find it’s quite a bit different than an equity swap in DFS because the timing of the liquidity is event. In a DFS equity swap, you know there will be a decision for liquidity by x date (win or lose), whereas as a fractional owner of art, you can’t control the liquidity event, and could end up a fractional shareholder forever, or be pressured into being bought out for less than market value.
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In thinking through fractional investing, I find it’s quite a bit different than an equity swap in DFS because the timing of the liquidity is event. In a DFS equity swap, you know there will be a decision for liquidity by x date (win or lose), whereas as a fractional owner of art, you can’t control the liquidity event, and could end up a fractional shareholder forever, or be pressured into being bought out for less than market value.