Zug-based Anthea Art Investments will launch the Anthea 1 Contemporary Art Investment Fund in May, the first closed-end art fund to be authorised by the Irish Financial Services Regulatory Authority. The fund will focus entirely on artworks from 1945 to the present day and is targeting at least E30-40 million at launch. Managing Partner Massimiliano Subba told AIN the fund will close to investment shortly after its debut and is likely to hold a second closing before year's end, with the aim of reaching E80 million.
The fund will invest around 70% of its portfolio in works by such established artists as Jeff Koons, Jean-Michel Basquiat and Frank Stella. Within this bucket, 20-25% of the overall portfolio will be used to acquire iconic pieces that have particular historical or cultural value, or are especially fine examples of an established artist's work. Around 10% of the portfolio will focus on successful artists from emerging economies, and roughly 2% will be invested in works by emerging artists, which Subba noted represent a riskier asset. The remaining 18% or so will be used to make price arbitrage investments by picking up artworks below market value via distressed situations and art auctions.
The fund will have an eight-year maturity, including a four-year investment period. It will charge 2/20 fees, though Anthea is also considering a second share class with 2/10 fees as an incentive for early-stage investors. The fund will have a E250,000 investment minimum. While the firm is talking to some pension funds, insurance companies and other institutions, Subba expects most investors to be private individuals and family offices. --R.M.
This article was originally published in Alternative Investment News.
