IEPlus: Germany’s Berenberg taps art investing with new private equity fund

Germany’s Berenberg has set up a private equity fund investing in art, which was made available to international investors on November 6.

The fund, Berenberg Art Capital Fund, intends to invests an estimated €50m in selected works of recognised artists.

The manager says art has become the “new” and important asset class in the last decades.

Raymund Scheffler, managing partner of Berenberg Art Advice and head of Berenberg Bank’s Düsseldorf branch, says: “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.”

The new fund will invest in extraordinary artworks of different genres, as well as in works produced by young international artists. The idea is to buy the best quality works at the fairest market price.

The team will focus on putting together a diversified portfolio of assets. Helge Achenbach, Berenberg Art Advice partner, says: “In doing so, the fund links the collector’s passion and proven experience in the art market to a professional investment structure.”

Berenberg offers a private placement with a minimum amount of €100,000 to select individuals. The fund will run for seven years with a triple extension option of one year each, at the manager’s discretion.

The investment committee consists of the three Berenberg Art Advice partners (Helge Achenbach, Dr Stefan Horsthemke and Raymund Scheffler), the director of Berenberg Private Capital, Jürgen Raeke, the CEO of The Fine Art Fund Group’s, Philip Hoffman and its director of art investment, Morgan Long.

Berenberg Art Advice has a joint venture agreement with the London-based Fine Art Fund Group, which contributes to the due diligence process when acquiring artworks.

The Fine Art Fund Group was established by Philip Hoffman in 2001 and is today the leading international art investment house, with assets under management in excess of $150m.

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