The art market, valued at $57.5 billion, has a complex relationship with investment funds. After a boom in the early 2000s and a bust post-2008, current market conditions are seen as favorable for establishing new art funds. Philip Hoffman, CEO of the Fine Art Group, aims to launch a new fund, leveraging his experience in achieving a 15% annual return on previous investments. He stresses the need for substantial capital and professional management to navigate costs and regulations, while also noting that tough market conditions ease access to primary market artworks.
"I proved the point that art could be a good investment—we made money on 84% of the art we bought, we lost it on 16%," Hoffman tells The Art Newspaper.
"Now is a brilliant time to start a fund, but it's got to be big enough, have low enough charges, and be run by a professional fund manager, not just art experts," Hoffman says.
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