$500,000 – $30,000,000
(Minimum Investment $25,000)
Invest in a diversified SPV of artworks by globally acclaimed contemporary artists. Artwork has historically outperformed many other asset classes and is expected to maintain strong sales performance throughout the duration of the SPV.
Benefits & Construction
Potential benefits of including art in your portfolio include:
- Art’s historically low correlation to the stock market makes it a viable opportunity for investors looking to diversify their portfolios.
- In addition to potentially double-digit returns, art may act as a hedge against inflation.
- The SPV invests in multiple pieces from various artists which could reduce concentration risk relative to investing in a single piece of art.
- The SPV democratizes the asset class by providing access and reducing the barriers to investing in art. With its lower minimums, the SPV allows retail investors to capitalize on the historical returns generated by the art market.
- By artists with significant secondary market traction
- With an estimated historical annualized appreciation rate of 10% or more
- An acquisition price of between $500,000 and $30,000,000
Deal Structure & Terms
- Contemporary and 20th century paintings with an extended secondary market track record
- Historical price appreciation of 10+% annualized
- Purchase price between $500,000 and $30,000,000
- Purchased via major auction houses or private sale
Minimum Investment – $25,000
- No annual management fee
- 20% performance fee from the profits of the investment
- $25,000 origination fee shared by all investors based on the percentage each investor represents of the total amount raised
- Partnership for US tax purposes
- K-1 for US taxpayers
The investment in the SPV is considered illiquid. As any of the SPV holdings are sold, the proceeds will be distributed to the investors. The estimated horizon to liquidate all holdings is between 3 to 10 years.