Filed Pursuant to Rule 253(g)(2)
File No. 024-12289
SUPPLEMENT NO. 5 DATED AUGUST 20, 2024
MASTERWORKS VAULT 3, LLC
This Supplement No. 5 dated August 20, 2024 (this “Supplement”), supplements, and should be read in conjunction with, the offering circulars of Masterworks Vault 3, LLC (as amended and supplemented, each, an “Offering Circular” and, together, the “Offering Circulars”), originally filed on June 27, 2023, as amended by Post-Qualification Amendment No. 1 filed on August 4, 2023, Post-Qualification Amendment No. 2 filed on September 13, 2023, Post-Qualification Amendment No. 3 filed on September 25, 2023, Post-Qualification Amendment No. 4 filed on October 23, 2023, Post-Qualification Amendment No. 5 filed on January 8, 2024, Post-Qualification Amendment No. 6 filed on January 23, 2024, Post-Qualification Amendment No. 7 filed on March 6, 2024, Post-Qualification Amendment No. 8 filed on March 19, 2024, Post-Qualification Amendment No. 9 filed on April 2, 2024, Post-Qualification Amendment No. 10 filed on April 22, 2024, Post-Qualification Amendment No. 11 filed on May 28, 2024 and Post-Qualification Amendment No. 12 filed on July 10, 2024. This Supplement should be read in conjunction with the Offering Circulars (including the disclosures incorporated by reference therein). Unless otherwise defined in this Supplement, capitalized terms used in this Supplement shall have the same meaning as set forth in the Offering Circulars. Except as set forth in this Supplement, the Offering Circulars remain unchanged.
The purpose of this Supplement is to disclose certain changes to the Offering Circulars relating to the Artwork and Artist Metrics. Particularly, the Masterworks public sale database has been updated as of June 30, 2024. Accordingly, the Sharpe Ratio, Record Price Appreciation, Median Repeat Sale Pair Appreciation and Artist Market Profile for each relevant artist listed in the “Description of Business - Artist Metrics” section of the Offering Circulars has been updated, as applicable, as shown below.
“Sharpe Ratio”
| Artist | Sharpe Ratio | |
| Hernan Bas | N/A | |
| Mark Bradford | N/A | |
| Cecily Brown | 1.26 | |
| George Condo | 0.70 | |
| Lynne Mapp Drexler | N/A | |
| Helen Frankenthaler | 1.61 | |
| Sam Gilliam | 0.99 | |
| Yayoi Kusama | 1.19 | |
| Gerhard Richter | 0.70 | |
| Bridget Riley | 0.95 | |
| Park Seo-Bo | N/A |
Record Price Appreciation
| Artist | Compound Annual Growth Rate (“CAGR”) | First Record Price | First Record Price Date | Last Record Price | Last Record Price Date | |||||||||||
| Hernan Bas | 20.3 | % | $ | 75,000 | May 11, 2006 | $ | 2,151,003 | June 30, 2024 | ||||||||
| Mark Bradford | 25.4 | % | $ | 270,000 | May 15, 2008 | $ | 10,410,000 | June 30, 2024 | ||||||||
| Cecily Brown | 20.2 | % | $ | 75,000 | November 13, 2000 | $ | 5,800,000 | June 30, 2024 | ||||||||
| George Condo | 22.5 | % | $ | 2,500 | May 6, 1986 | $ | 5,805,900 | June 30, 2024 | ||||||||
| Lynne Mapp Drexler | 57.5 | % | $ | 50 | April 19, 2002 | $ | 1,200,000 | June 30, 2024 | ||||||||
| Helen Frankenthaler | 12.5 | % | $ | 60,000 | May 9, 1984 | $ | 6,700,000 | June 30, 2024 | ||||||||
| Sam Gilliam | 26.3 | % | $ | 2,900 | December 14, 1996 | $ | 1,800,000 | June 30, 2024 | ||||||||
| Yayoi Kusama | 23.8 | % | $ | 10,000 | October 9, 1992 | $ | 8,800,000 | June 30, 2024 | ||||||||
| Gerhard Richter | 24.0 | % | $ | 7,386 | June 26, 1984 | $ | 41,142,600 | June 30, 2024 | ||||||||
| Bridget Riley | 21.6 | % | $ | 2,462 | June 25, 1985 | $ | 5,103,400 | June 30, 2024 | ||||||||
| Park Seo-Bo | 36.8 | % | $ | 7,000 | March 28, 2006 | $ | 2,141,091 | June 30, 2024 | ||||||||
Median Repeat Sale Pair Appreciation
| Artist | Median Repeat Sale Pair Appreciation Rate | Number of Repeat Sales | First Repeat Sale Pair Date | Last Repeat Sale Pair Date | ||||||||
| Hernan Bas | N/A | N/A | N/A | N/A | ||||||||
| Mark Bradford | N/A | N/A | N/A | N/A | ||||||||
| Cecily Brown | 17.9 | % | 33 | November 14, 2000 | May 17, 2024 | |||||||
| George Condo | 15.4 | % | 96 | May 8, 1996 | June 27, 2024 | |||||||
| Lynne Mapp Drexler | N/A | N/A | N/A | N/A | ||||||||
| Helen Frankenthaler | 15.0 | % | 27 | November 21, 1996 | May 17, 2024 | |||||||
| Sam Gilliam | 18.4 | % | 17 | September 21, 2003 | March 7, 2024 | |||||||
| Yayoi Kusama | 21.9 | % | 173 | March 11, 1998 | June 1, 2024 | |||||||
| Gerhard Richter | 11.3 | % | 143 | June 27, 1996 | June 27, 2024 | |||||||
| Bridget Riley | 15.0 | % | 24 | December 12, 1997 | May 28, 2024 | |||||||
| Park Seo-Bo | N/A | N/A | N/A | N/A | ||||||||
Artist Market Profiles
| Artist | Artist Market Profiles | |
| Hernan Bas | Emerging | |
| Mark Bradford | Established | |
| Cecily Brown | Established | |
| George Condo | Established | |
| Lynne Mapp Drexler | Emerging | |
| Helen Frankenthaler | Established | |
| Sam Gilliam | Emerging | |
| Yayoi Kusama | Mature | |
| Gerhard Richter | Mature | |
| Bridget Riley | Established | |
| Park Seo-Bo | Established |