The adArtem Art Fund Project (AAAFP)
The adArtem project aims at constituting an Art Investment Fund. It will be dedicated to the upper-market Blue-chip
artworks by Impressionists, Post-impressionists, and 20th century’s most famous artists. The Fund will purchase works from private owners
through private transactions only. The adArtem project collection will thrive and gain value by getting public notoriety through
exhibitions and/or loans to the top-10 museums in the world.
The market of the most valuable artworks made by the most famous artists has followed a steady growth trend for the last 30 years
despite global market turbulences. The Fund’s value will therefore follow this positive trend. To protect eventual discrepancies in
the trend, a mutualization of the risk by putting together a prominent collection of first-class masterpieces is a valuable solution
provided there are no weaknesses in the choice of the artworks. The “collection effect” provides an automatic premium to the works
taken individually. An active promotion policy through exhibitions, editing, publications, and loans to museums will add value to
both the collection and its works.
- The Fund will be 100% cash, “debt-free & no leverage financed”.
- The Fund will be closed for 5 years. However, the shareholders will be entitled to mortgage their stocks and/or use them as collateral for bank loans.
- The Fund has a patrimonial goal. It has no speculative purposes and it doesn’t intend to buy and sell paintings unless it abides by the fund’s acquisition policy and the interest of its shareholders (for instance bartering artwork with collectors who eventually don’t want a dry sell).
- The Fund does not intend to generate yearly revenues for its shareholders. Profits will be made at the term of the Fund.
- The Fund designs the financial architecture to secure investors and all parties involved in the management.
- The Fund as well as already defined an exit strategy: sale of the collection to a new-born and wealthy museum (Qatar, UAE, Saudi Arabia, etc.), public auction sale of the works at a special Sotheby’s or Christie’s sale, securitization of the collection, continuation for an extra 5-year term.
- The right and sensible sourcing of museum-worthy artworks is the most challenging part of the AAAFP and its main condition of
success. Identifying them and getting direct access to the owners is therefore a key issue and the first role of the Management Fund.
AAAFP: - it identifies through its experienced network the ‘sleeping beauties’ corresponding to the AAAFP’s target;
- private transactions only;
- artists with high historical acknowledgment;
- upper-market artworks (evaluation from 10 Mio to +100 Mio Usd/Euros);
- artists with an active market: priority to Picasso, Monet, Renoir, Van Gogh, etc.;
- negotiates the terms and conditions of the acquisitions on behalf of the Investors with Full Power of Attorney and manages the collection: independent.