$500,000 – $30,000,000
(Minimum Investment $25,000)
Overview
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
benefits
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.
Portfolio Construction
The portfolio will primarily consist of equity investments in entities that have each securitized a single work of art. Artwork investments may include objects in the Contemporary, Post-War, Modern, and Impressionist categories:
- 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
The investment will be structured as a Special Purpose Vehicle (SPV) that invests in other SPV offerings available to an exclusive group of institutional investors. The SPV may invest in SPVs that offer single pieces of artwork or in a Regulation D offering that owns a diversified portfolio of pieces.
Investment Criteria
- 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
Fees
- 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
Taxes
- Partnership for US tax purposes
- K-1 for US taxpayers
Liquidity
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.
Take the next step
For more information about WealthPRIME and WealthPRIME Carbon & Conservation Investors 1, LLC, please call 855-774-6340
