Berenberg Art unit partners with London Fine Art Fund Group
Berenberg Art Advice GmbH is partnering with London-based Fine Art Fund Group Ltd to offers high net worth investors access to art as a distinct and uncorrelated asset class.
Berenberg Art Advice GmbH will act as adviser to the Berenberg Art Capital Fund Ltd, which is investing some €50m in selected “blue chip” works of recognised artists.
Dusseldorf-based Berenberg Private Bank, is one of Germany’s oldest owner-managed and independent banks, says art has become a new and important asset class.
“Due to the capital market’s insecurities and the recommended diversification of assets, material assets stay in the investor’s focus. Since its value develops independently from classical assets such as stocks, bonds or real estate, art is a suitable supplement to any well-structured portfolio,” says Raymund Scheffler, Berenberg Art Advice managing partner and head of the bank’s Düsseldorf branch.
The fund’s goal is to build a portfolio that holds extraordinary artworks of several genres and of young international artists.
Private placement with a minimum amount of €100,000 is offered to selected individuals only. The fund will run for seven years with a triple extension option, at the management’s discretion, over one year each.
“In the context of investment it is essential to build a portfolio of selected artworks that are continuously demanded across the international markets,” said Dr Stefan Horsthemke, managing partner of Berenberg Art Advice.
Collaborating with leading museums, galleries and collections will form an important aspect of the project. The general investment policy is to invest on a long-term basis.
The know-how of Berenberg Art Advice is complemented through a joint venture agreement with the Fine Art Fund Group Ltd, which will contribute to the due diligence process.
The Group will function in the investment committee, co-advising the executive board as well as coordinating administrative services like insurance, transportation, storage or restoration.
The investment committee consists of the three Berenberg Art Advice GmbH partners, Helge Achenbach, Dr Stefan Horsthemke and Raymund Scheffler, the director of Berenberg Private Capital GmbH, Jürgen Raeke and The Fine Art Fund Group’s CEO, Philip Hoffman and Director of Art Investment Morgan Long.
Both the concept and structure of the Berenberg Art Capital Fund has been developed by Berenberg Private Capital GmbH, a Berenberg Bank subsidiary that has been identifying and presenting opportunities in the private equity sector since 1991.
The investment focus is on buying and selling blue-chip works and on developing a diversified portfolio. “In so doing, the fund links the collector’s passion and proven experience in the art market to a professional investment structure,” Helge Achenbach, Berenberg Art Advice partner, says.
The Fine Art Fund Group, established by Philip Hoffman in 2001 is a leading international art investment house with offices in London, Geneva, Lugano, Dubai and Beijing, and an international team of 40 managers and art consultants.