Saturday, December 3, 2016

" Private Art Funds " the solution to make money by buying top quality artworks

INVESTMENT IN ART FUNDS

VWART investment in private art funds

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INVEST IN ART FUNDS


 
PRIVATE ART FUNDS : what is it

    
Art funds are private investment funds to the generate returns through the acquisition of art.
Art funds utilize the “buy and hold” strategy. Buy and Hold investment strategy is a strategy in which the investors keeps the art for a +/- long period of time, regardless of the market orientations.
Art funds may differ in size, focus, duration, etc
Art investments are based on the art market values, legally the art funds are not submitted to any regulation which will be explained later.
Private art funds are made for people who want to own a part of an important painting, by example a 1 Million $ Picasso artwork. They don't have the 1 M $ but will own 10% up to even 100 % of the painting, depending on the invested amount  but without having the hassle for the storing of the painting, insuring the painting, etc All this being done by the private art funds manager. Shares start at a minimum of $ 200,000.00.

PRIVATE ART FUNDS : regulations

     Art funds are subject to law and regulation.
To avoid being labeled as an investment company, the art funds funds will have less than 100 investors in the fund of funds. The art funds fund will not have to follow the investment regulations ( SEC ) if this  is respected
Please visit http://artfundassociation.com/_what_are_art_funds/basic_af.html  to see all the rules and regulations.

PRIVATE ART FUNDS : how it works

      The funds are managed by a professional in the art business, with experience on buying and selling fine art at the highest level.
It is the role of this manager - advisor to submit to the investors, fine art that is subject to increase in value over the years ( usually the investments are made for 5 years ). The art work in this time frame of the 5 years may be sold or put up for a loan to  a museum, or a corporation  by example, may be exchanged with other art works etc, all this of course under the strict survey of the different share holders of the art work.
Usually art increases in value with a minimum of 10 % yearly, of course the advisor- manager has to be the right person to exercise the choice of art, experience is primordial in this domain. You will not be a manager of a private art funds after ending an art class or becoming an A.S.A. etc appraiser. It requires a lot of experience and a well filled address book of merchants, dealers, experts, curators, wealthy potential investors etc.
A manager needs to have a vision and knowledge of fine art to be able to predict what will be a good investment.
Art works are owned by one or multiple investors. So it is possible to own a 1/10 of a 5 Million $ painting.
 

PRIVATE ART FUNDS : what a good manager does for the investors

      He hunts for artworks online, auctions, galleries, private collectors. When he finds an interesting work of art, he
believes it could be a good investment for an investor, he has to verify:
1/ the value of the art work if it was sold in auction. Artprice etc are databases for the auction results. He will deduct 20 to 25 % of the mentioned value in the data, since the seller will have to pay this % to the auction house.
He needs to buy at least 25 % below the auction price
2/ the authenticity of the art, and has to request a C.O.A. from the sole recognized authenticator
A good manager will take advantage of all the possibilities to pay the lowest possible price, especially if he buys it from private source. In online auctions it's very rare to find an item at a very good price. Dealers and merchants look at the auctions every day, sometimes one can find a good opportunity in a small auction house with few or no visibility online.
Private sellers and collectors are definitely the best places to buy an item, of course Steve Wynn, and collectors of that caliber will be out of price. Galleries are taking a profit of minimum 50 % on the market value, which leaves no room before many years to make a substantial profit.
Merchants, galleries and professionals make their profit not at the sale, but at the purchase price: " Higher you buy, less profit you will make."
A good manager with a vision, knowledge and experience will make  a profit for his clients,  sometimes up to 50/60 %, in one year... but always minimum 10 % a year.

OUR SERVICES : for collectors and investors in art funds

      We offer 
      1- Advise on how to build a fine art collection, in partnership with other collectors investors
     2- How to maintain an art collection, at low cost, through a manager
     3- Close collaboration with the collector for investments in fine art, at every level of the market
     4- Assistance to buy fine art in auctions, from private owners, and dealers in the USA and worldwide

INVESTMENTS IN FINE ART: reviews

Art & Finance report 2014 Download the report (PDF - 4.5 MB)

Continue to read on website;  http://www2.deloitte.com/lu/en/pages/art-finance/articles/art-finance-report.html#.VCVAUhYZUsB

What is behind the art investment boom ?
Read website : https://news.artnet.com/market/what-is-behind-the-art-investment-boom-113619

Bloomberg-business article about Investing in fine art
Billionaires investing in Fine Art at Basel Art ...
http://www.bloomberg.com/news/articles/2014-06-20/billionaires-at-basel-bet-art-better-investment-than-cash



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DISCLAIMER:

This information page about art funds can be modified and expanded any time.
it is provided for informational purposes only.
This is not an offer to sell art funds.
 


 

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