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 an unique investment product in art.
The total cost of the investment for that specific collection (Equity Fund) will be distributed by the different co-investors in such a way that each of the participants becomes co-owner of the artistic asset according to their monetary contribution and percentage to that amount.
After the purchase of the arts, 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 of the investment with its respective capital gain value.
During the custody period, an additional profit could be obtained 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 in order 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 entity manager of the investors’ community and does not participate at any time as a co-investor of the Fund to avoid any discrimination of any investment operation.
WHO AND HOW TO INVEST
Who can invest?
Only the following types of residents in Spain are authorized to invest in ArtsGain Funds following Spanish regulator rules:
- Professional clients per se (article 205 TRLMV) that may sell the shares of the Funds. ARTSGAIN will check professional accrediation and will verify that the investor meets the requirements established in article 58 of RD 217/2008, which in the case of companies must meet at least two of the following three conditions: company assets value greater than €20M, annual turnover exceeding €40M or company resources exceeding € 2M; further understanding that it is not necessary for the client to have any connection with the art business.
- Retail clients who request their treatment as a qualified investor (article 206 TRLMV): it must be requested by the client himself and ARTSGAIN have to evaluate if the investor meets at least two of the three requirements established in article 59 of RD 217/2008 (significant volumes of investment, investment portfolio over € 500,000 or recognized position in the arts industry), related these 3 requirements to arts market.
If you meet any of these requirements and after verification of compliance with the requirements by ARTSGAIN’s legal department, you can invest in the available funds.
In the case of retail clients wish to invest in the available funds on their own initiative and without prior advertising intermediation of ARTSGAIN, they may subscribe to the funds with an investment commitment for at least €100,000 and declare in writing that they are aware of the risks that they taking, according to the provisions of articles 75.1, 75.2 and 75.3 of Spanish Law 22/2014.
What kind of artworks do I invest in?
The art equity fund is used to invest in artworks such as paintings and sculptures, and in antiques and collectibles.
What type of investments does ARTSGAIN offer me?
ARTSGAIN only offers 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 a 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 of location of the artworks included in the funds.
What happens when the investment target is reached?
At the time 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?
The entity that associates all co-investors who have invested in a certain fund will be legally incorporated as Equity Fund called “FICC” (Closed-End Collective Investment Fund) or “SICC” (Closed-End Collective Investment Company) following the terms established by Spanish Law 22/2014. Equity Funds are managed by ARTSGAIN as a management company approved an registered under SGEIC Registration number 171 by Spanish Securities Market Regulator (CNMV). ARTSGAIN is not acting as participant in the co-investment of the different funds to avoid any influence on investor’s decision.
Do I have to pay taxes associated with my investment?
Investors who form part of the Equity Fund (called FICC or SICC in Spain) will pay taxes at the time of the capital gain, that is when the arts are sold after five years (or another stipulated time) from the date of acquisition and only if there are capital gains.
In the case of an investor being a company or institution, the gains obtained will follow the rules of the Spanish Corporate Taxes that in summary provides an exemption of 95% of the gains for those investors which investment is greater or equal than 5% of the total investment fund.
In the case of an investor being an individual person established in Spain, the benefits generated from the sale will affect his/her Income Tax (IRPF) and will imply a taxation of between 19% and 23% of the referred capital gain according to current Spanish Law stretches: 19% up to a gain of €6,000, 21% for the following €44,000 and 23% for more than €50,000.
SHARES, PAYMENTS and costs
Is there a minimum amount to invest?
ARTSGAIN offers you participate in the co-investment based on the undivided unit of a share with an individual value (for instance, €10,000) what will be indicated in the related Propectus. In this way, each investor can buy as many shares as are available with a maximum of shares for each fund (4 shares valued at €40,000 for example).
How do I make the investment payment?
When you make an investment commitment 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 ARTSGAIN subscription fee and 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 commercialization 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 first year the subrogation of the shares is allowed prior to 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.
Are there any costs related to the investment?
The cost of the services and management fees of ARTSGAIN corresponds to 3% (or the % indicated in the prospectus of the fund) on the capital committed as expenses for the acquisition of product and its subscrition, plus an annual fee of 0.5% (or the % indicated in the rules of the fund) in 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 15% commission fee is linked to the value gain 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 of type of qualified investor. All documents will be verified by ARTSGAIN Legal Department before any investment may occur.
What can I do in the website?
When you are registered in 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 that 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, and it depends on the evolution of external factors to the investors and to 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 selection of artworks, verification of the artworks and other assets, its 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 of art pieces of international recognized artist, 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 a 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 arts market and you have an interest in artwork, antique or collectible 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 therefore establish a collaboration agreement in case of a positive interest from both sides.
If I am representing 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 therefore establish a collaboration agreement in case of a 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 will reply to you as soon as possible.