Luxembourg-based Art Fund Sets Its Sights on Abstract Expressionists

Wealthy investors and art connoisseurs may be lured into a new investment possibility.  A group called the Art Collection Fund is ambitiously inviting investors to join in a plan to buy approximately $80 million worth of art with what they say has a potential annual return of 12%.

According to the Art Collection Fund’s website, the fund offers, “…investors the opportunity to invest in works of art of exceptional quality. The fund’s objective is to deliver a return on capital invested through the acquisition of works of art with a view to disposing of the collection after six years.” 

The fund is said to be eyeballing the work of key Abstract Expressionist painters such as Arshile Gorky and Joan Mitchell for their initial acquisitions.

Based in Luxembourg, the Art Collection Fund is not the first investment vehicle of its kind. Almost 25 such companies emerged in 2011, mainly out of China. 

Anders Petterson, founder of ArtTactic, an art investment research group, has said, “The sense that art is an asset class is gaining momentum. The funds are now being tuned to be part of the ecosystem rather than a parasite. “ 

So far, the Art Collection Fund has 10 million euros in unconfirmed commitments coming from various investors in Western Europe.

About 65% of the collection is to be dedicated to modern and contemporary art, though Stanislas Gokelaere, founder and CEO, has said, “We won’t acquire cutting-edge pieces and we’ll be concentrating on slightly lesser-known names that appreciate in a slower, stronger way.”

Tribal art will comprise 35% of the investment.

(Report: Christine Bolli for ARTFIXdaily)