ARTEMUNDI 2015 - Artemundi Global Fund

Transcription

ARTEMUNDI 2015 - Artemundi Global Fund
Contact us:
+1.800.969.1623
ARTEMUNDI 2015
[email protected]
*Artemundi Group: The World’s Premier Investment and Finance Group
Management Company: “AML”-Artemundi Management Limited (Cayman)
artemundigroup.com
AML advises on the acquisition, management and sale of fine art objects. AML believes success in the fine art market depends on a well balanced investment art
portfolio, maintaining transactional cost at a minimum, keeping very low managements and administrative cost, qualitative criteria gained through experience, as
well as accurate quantitative data, combined with the ability to identify and act upon opportunities.
Experience
*Principals & associates are highly
visible art collectors
*+ 1/2 Billion US in art advisory
*Authorship in the field
Appreciation Strategies
*Generation of editorial content
*Exhibition loans
*Media exposure
*Geographical arbitrage
*Academic Expertise
*Profit from inefficiencies in the artmarket
Benefits to investors
*Portfolio diversification
*Access to top intl. market players
*Security and transparency
*Economies of scale
*Specialized Management
*Familiar Structure
*Superior Returs
Funds under management
*Currently AGF-1 (winding up May
2015)
*Soon: AGF-2, Auction Guarantee
and Art Loan Fund, LATAM Art Fund
Key-Man: Mr. Javier Lumbreras
Few people can be said to have successfully launched a new category of capital investment. Mr. Lumbreras is one of those few who can put forth such
a claim. His rich background in art and finance hails from a lineage of art collectors that started in Spain in 1881. He has served as consultant to selected
private collectors, guest lecturer at museums, universities, banks and at leading media groups, and as trustee to international art institutions. Additionally, he
is Chairman of the Board of Directors of The Art Fund Association, New York. With a reputation as a pioneer in the field, he is a reliable and respected speaker
in matters pertaining to art collecting at large, art as an asset class, and art securitization including portfolio management and estate planning. Among other
venues, Mr. Lumbreras has been a speaker at the Alternative Investment Association, the Sotheby’s Institute in London, the Heckerling Institute on Estate
Planning, the Art Investment Forum, and at Deloitte’s Art & Finance conferences. Mr. Lumbreras is the author of the book The Art of Collecting Art. He is also
a skilled and determined art collector in his own right. He founded The Adrastus Collection of contemporary art, a family trust initiative with institutional aims.
A XIOMS
• Profit in art transactions are made fundamentally at
purchase.
• Art Instincts trump financial instincts when purchasing Art.
• Control the exit strategy.
G OLDEN R ULES
1. Purchase art through private collections (as opposed to buying through galleries and auctions);
2. Keep administrative, operations and maintenance costs under control;
3. Minimize transactional costs (such as taxes and redundant commissions);
4. Select art which value can be added (through Artemundi’s appreciation strategies); and
5. Sell art through private collections.
*Artemundi Global Fund-1: Artemundi Group’s Flagship Product
artemundiglobalfund.com
AGF-1 is a private equity art fund that achieved attractive investment returns through a strategically diversified portfolio covering half a millennium of universally
recognized artists.
Investment Protocol
*Authenticity &
Provenance
*Marketability
*Specific Expertise
*Trends
Efficiency
*Expense ratio: 0.78%
*Avg. opex (2010-2014): $284k
*Avg. commission (2014): 1.4%
*No commission transactions: 62%
(arms length)
Structure: 5-8 year closed term; Cayman Limited
Partnership; co-investment available; potential cash
and/or art distributions before wind-up; 80/20 waterfall;
Management Fee: 2%; Subscription Amount: $150 Million;
Transaction profile: equity; Minimum Investment: $250k
(individuals), $1M (institutional)
Investment Thesis
*Modern, Post-war, Latam,
Impressionist, Old Masters
*Below FMV acquisition
*Positive tendency towards
exit
AGF-1 Performance 2014
* ROA: 24.7%; ROS: 19.5%
*Negative transactions less than
2%
*Accumulated Volume: US $131
Million
*Revenue: US $25.3 Million
*Artemundi: A One-stop Shop for Art-related Financial Services
Artemundi has developed, to the benefit of its clients, two new products: (i) auction guarantees that secure the sale of artworks at a minimum price avoiding the
catastrophic consequences of a “bought-in” scenario; and (ii) asset-based art loans that allow the asset to be used as a resource for liquidity.
Example:
Joseph Cornell
“Medici Slot Machine” 1943
Christie’s 2014
High Estimate:
Low Estimate:
Reserve:
Price Realized:
Hammer Price:
Buyer’s Premium:
Profit:
Guarantor’s 30%:
Guarantee Fee:
Carried Interest:
Investor’s 80%:
Investor’s Commitment:
ROI:
*Auction Guarantees:
$3.5M
$2,5M
$2
$7,781
$6,8M
$0.981M
$4,8M
$1,440M
$0,006M
$0,288M
$1,152M
$2M
58%
About 25 to 30 percent of the time, the highest bid in art auctions fails to meet the undisclosed reserve price.
The lot is “bought in” and is usually viewed as “burned” by the market. Consignors may have to wait between
2 to 6 years to place the artwork for auction again and still be subject to an average discount, on the second
appearance, ranging from 14 to 35%. After 6 years -approximately- the BI effect has diluted completely and
the artwork appreciates at a regular market rate. Auction price guarantees resolve this problem by issuing
a form of insurance that removes risk from the consignor despite what may happen in the sales room. If a
lot does not sell above reserve, the guarantor buys the artwork; if a lot sells below floor, the auction house
pays the difference; and if a lot sells above floor, the guarantor splits the overage (up to 50% of the same).
Guarantee fees range 3% - 5% of the guaranteed amount.
*Asset-backed art loans:
Collateral: Artworks; Per annum interest rates: 8%-16%;Term: 3-60 Months; Amounts: 2-20 Million; LTV
Ratios: 30%