Fintech brings together contemporary and emerging investments in one investment that exhibit different valuation profiles. Projected profitability is between 16,31% and 25,03% per year in 24 months
The Hurst Capital, largest alternative asset platform in Latin America, has just launched the newest investment operation in works of art. This time, the bet is on artists with different valuation patterns so that the capital is diversified in different strategies and markets.
For this, the Arts of Brazil, Group company responsible for managing works of art assets, acquired 8 works – 2 of established contemporary artists and 6 of artists (Re)emerging, to structure an investment operation that performs in different terms and economic scenarios.
“For this operation we brought together two consolidated contemporary artists: Vik Muniz and Ana Elisa Egreja. And two artists (Re)emerging, which has an extraordinary production in previous decades and is currently receiving attention from the art market: Niobe Xando and Miguel dos Santos. It is a portfolio made up of artists with different profiles, but which have the solidity of having their works appreciate more than 10% the year. In addition, The chosen names will be at fairs and exhibitions in the coming months”, explains Ana Maria Carvalho, director of works of art investments at Hurst Capital.
This is the second operation in this format bringing together very different artists. The first Fine Art I was an operation with 22 works, including the biggest Brazilian blue chip Alfredo Volpi, even Amílcar de Castro and young contemporary artists like Uyrá.
So, Ana Maria guarantees that the investor will receive a return regardless of any change in the economy or the art market. “A blue chip artist can deliver a lot of returns but it takes more time, while young artists can have a high return, or at worst deliver 15% a.a. in a shorter term, This gives a very good balance”.
The projected profitability for this new operation is between 16,31% (conservative) and 25,03% a.a. (optimistic) in 24 months. In the base scenario, the predicted percentage is 19,75% the year.
The minimum investment is R$ 10 thousand and , taking into account the base scenario, At the end of the operation, the expected redemption value is R$ 14.340,06.
“Investment in works of art presents constant appreciation with the potential for high returns. It is a recommended alternative asset as a way of diversifying investment portfolios, in addition to the cultural and aesthetic value. The contemporary art market in general is going through a revival and now is the ideal time for investors to take advantage and benefit from this boom”, highlights the CEO of Hurst Capital, Arthur Farache.
Hurst Capital's fine art investment operations target safe high yield, having as a factor of attention, the liquidity period, because the right time to sell work with high profitability, can vary a lot.
“Investment in artworks requires careful analysis and planning taking into account that the market presents different behaviors depending on the artist, time and region of commercialization”, remembers Farache.
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Hurst has already launched 17 operations in the segment and the high return. Among them stand out: Palatnik (27,5% a.a.); Judith Laand (20,39% a.a.) and two from Volpi (19,27% a.a. and 13% a.a.).
According to the 27th annual report of Artprice by Artmarket, French online art price database, published in October 2023, in 23 years the turnover of works by ultra contemporary artists – born after 1974 – jumped from US$ 14,9 million in the first half of 2000 for $ 127 million in the same period of 2023.
The two main valuation indices for Works of Art are ((i)) Mei and Moses, which presents the performance of works sold at Sotheby's since 1950, with an annualized average of 8,5% a.a. and (ii) Artprice100 index, whose annualized average is 9% a.a., based on the sales value of works in the main houses in the world.
Sobre a Hurst
Hurst is a fintech founded in 2017 by professionals who came from the financial market and who dedicated themselves to creating technology to originate, structure and distribute alternative assets, as court orders, receivables, real estate, music royalties, cinema and works of art.
Today Hurst Capital has become the largest alternative assets platform in Latin America.
