What is ARTSGAIN?
ARTSGAIN is an equity fund management company open to qualified investors to jointly invest in art, including artworks, antiques, and collectibles.
How does it work?
A fund is composed of several artworks by several artists that determine a unique investment product in art.
The different co-investors will distribute the total cost of the investment for that specific collection (Equity Fund) so that each of the participants becomes a co-owner of the art asset according to their monetary contribution and percentage to that amount.
After the purchase of the art, all objects are kept in safe custody for five years or a specified certain time, at the end of which it will be sold to obtain the return on the investment with its respective capital gain value.
An additional profit could be obtained during the custody period if any museum or cultural institution would be interested in its rental.
What advantages does ARTSGAIN provide me?
ARTSGAIN manages Closed-End Equity Funds for Qualified Investors to make capital investments to obtain similar profitability and similar investment opportunities with similar investment vehicles that any big investors would in a fully transparent and legal way according to investors’ economic capacities.
What is the role of ARTSGAIN?
ARTSGAIN acts exclusively as the legal and registered asset manager of the fund and does not participate at any time as a co-investor of the Fund to avoid any discrimination in any investment operation.
WHO AND HOW TO INVEST
Who can invest?
Only accredited investors are authorized to invest in the ArtsGain-managed funds with a minimum of €125,000 or $150,000.
After verification of KYC and AML compliance along with your accreditation, you can invest in the available funds.
What kind of artwork do I invest in?
The art equity fund is used to invest in artworks such as paintings and sculptures and antiques and collectibles.
What type of investments does ARTSGAIN offer me?
ARTSGAIN-managed funds only offer artworks, antiques, and collectibles that have a realistic opportunity of profitability in the mid-term. Projections are based on well-defined factors of its acquisition price, the relevance of its artist, the value of the market situation, the timing when the artwork was created, or estimating when a sale is to be made. All artworks have passed legal validation and reliable certification of the authorship to minimize risk. To this end, ARTSGAIN uses art market database technology and price prediction algorithms at the same time checking with estimates provided by well-known companies and experts in the art market.
ABOUT THE INVESTMENT
Where can I invest?
Qualified investors can invest in any active fund regardless of the country’s location of the artworks included in the funds.
What happens when the investment target is reached?
When the fund reaches the target capital, the fund that brings together all qualified investors closes and does not support future extensions. A legal copy of the documentation that certifies investors as a participant in the fund of the acquired artworks is sent to each investor.
As the fund obtains the sufficient amount to acquire verified and certified artworks that make up the fund, they will be acquired up to the maximum investment objective value. The term of this acquisition process may vary depending on the type of fund depending on the number of works of art and their location.
Subsequently, we proceed to report periodically on the evolution of the main investment metrics of the acquired artworks to show their progress and thus be able to evaluate the return on their investment on an ongoing basis.
What is the legal form of the investment company?
SHARES, PAYMENTS, and COSTS
Is there a minimum amount to invest?
ARTSGAIN offers you to participate in the co-investment based on the undivided unit of a share with an individual value that will be indicated in the related Prospectus. In this way, each investor can buy as many shares as are available.
How do I make the investment payment?
When you make an investment committee that will correspond to a certain number of shares of the chosen fund, you must make an initial payment of a minimum of 10% of your commitment plus the first-year management fee. This amount will be made by wire transfer to the bank account of the fund itself provided by ARTSGAIN.
The investor can process the payment of the rest of 90% in one or more payments to the bank account of the chosen fund that ARTSGAIN provided up to 30 days after the commitment date, and in case there were less than 30 days between mentioned date and the end date of the Capital Call period, in the remaining period.
Can I sell my shares?
It is an illiquid investment since it is a closed fund. There is no right of individual reimbursement, but after the first year, the subrogation of the shares is allowed before the exercise of the pre-emptive subscription rights of the rest of the investors. This process is under the supervision of ARTSGAIN. The subrogation conditions are set in the policy of the fund.
The cost of the services and management fees of ARTSGAIN corresponds to 2% (or the % indicated in the prospectus of the fund) on the capital committed as an annual fee paid quarterly (0.5% per quarter) in the concept of fund management services and their legal and administrative representation.
At the time of the sale of the works of art of the Fund, a 20% commission fee is linked to the value gain over the hurdle rate, or the % stipulated clearly and transparently in the prospectus of the fund will be applied additionally.
SIGN UP AND USER INFORMATION
What information is required to sign up?
The user needs to provide his/her personal identification information, economic activity, and other legal documentation depending on the type of qualified investor. ARTSGAIN Legal Department will verify all documents before any investment may occur.
What can I do on the website?
When you are registered on the website, you will have access to the funds to invest in, have access to restricted information if you are properly accredited, see the shares with the legal certification as a co-owner of the acquired artworks, see the investment prospectus, and policy, and the evolution of your gains of each of your shares, and in your control panel, you update your bank account information in which you are going to receive the benefits of your investment. No operations performed by any other investor on the web will be visible.
Is it risky to invest?
It is necessary to consider investing in the art market offers certain security in the investment as it is considered a safe value. Each artwork or artistic good will always have a value that can rise or fall depending on market forces, but it has an implicit risk in the investment business itself. It depends on the evolution of external factors to the investors and ARTSGAIN, such as the competitive value of the artist, the evolution of the local and global economy, anomalous situations such as earthquakes or wars, among many others. Therefore, experts in art investment recommend diversifying your investment as much as possible to invest in different funds to distribute the risk of your investments and maximize the chances of success of such investments.
How does ARTSGAIN verify fraud?
ARTSGAIN has established a rigorous process of selecting artworks, verifying the artworks and other assets, their authorship, and information of the paintings or artistic quality that complies with all the legal regulations necessary to minimize fraud in the acquired artworks.
Likewise, ARTSGAIN is obliged to communicate any indication or suspicion of operations related to money laundering and terrorist financing that it might know in the exercise of its management activities through verification protocols established by the Commission for the Prevention of Money Laundering and Monetary Offenses (SEPBLAC) of the National Bank of Spain.
If I am a Private Owner of Artwork/s, how can I participate?
ARTSGAIN is interested in offering the best funds to our investors. Therefore, if you are a private owner of high-quality art pieces of internationally recognized artists, please contact us through art @ artsgain dot com. One of our professionals will contact you as soon as possible to validate your artwork information and related certification of authenticity, and therefore establish a collaboration agreement in case of positive interest from both sides.
If I am an Artist, a Broker, a Gallery owner, or an Auctioneer, how can I collaborate?
ARTSGAIN is interested in offering the best funds to our investors. Therefore, if you are an artist or a certified professional of the art market and you have an interest in artwork, antiques, or collectibles to offer us, please contact us through art @ artsgain dot com. One of our professionals will contact you as soon as possible to validate your information and establish a collaboration agreement in case of positive interest from both sides.
If I represent a Family Office, Investment Funds, or Financial Institution, how can I collaborate?
ARTSGAIN is interested in offering the best funds to our investors. Therefore, if you need any specific support to your funding needs, please contact us through invest @ artsgain dot com. One of our professionals will contact you as soon as possible to understand your needs and establish a collaboration agreement in case of positive interest from both sides.
ANY MORE QUESTIONS?
Do you have any additional questions?
Please send us an email to hola @ artsgain dot com, and we will reply to you as soon as possible.