Art Investment Funds

Melanie Gerlis of the ArtNewspaper has a good article about art investment funds. Several major art investment funds, according to Gerlis have failed to raise the necessary capital to invest in art and provide a fair return. Gelis notes three recently announced funds have not been able to raise capital, some had pledges of funds which never materialized. Given the current economic conditions of the world economy in general, and the art market in particular, the news is really not that surprising.

Gerlis reports The London-based Art Trading Fund, which launched its second fund in May 2008, has had to “delay” its plans as it was “unable to raise the necessary amounts”, co-founder Chris Carlson said. The fund aimed to raise $50m to invest in contemporary art and boasted Mr Saatchi as one of its consultants. While potential invest­ors had verbally committed around $35m to the fund, only $15m came in, according to Mr Carlson. The company’s first fund, which raised $10m in 2007, was likely also to “take a hit” he said, but added that this would be “nothing catastrophic”.

To read the full ArtNewspaper article, click HERE.