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Guernica V. Fund to Help Investors Navigate the Art Market Amid COVID-Related Financial Uncertainty

The fund will help qualified investors reap the benefits of art as an alternative asset, using a timely structure to protect and grow their wealth

Published on March 03, 2021

Artemundi, a leading art fund manager with its affiliates having previously managed over US$1 billion in works of fine art and a firm commitment to increasing transparency in the market, has announced the launch of the Guernica V. Fund. This fund has been specifically designed to protect and grow wealth during the current health and economic crisis. The fund will allocate investment capital initially targeted at US$200 million towards the acquisition of a diversified portfolio of secondary-market museum-quality artworks with attractive short-term risk-return profiles.

The fund will invest in highly desirable works from the late 19th Century Impressionism, Post-Impressionism, and Modernism periods, as well as the Post-War and early Contemporary movements.

“In uncertain times, high-end art is an attractive investment option for preserving and growing wealth,” said Javier Lumbreras, CEO of Artemundi. “Simultaneously, investing in art as an alternative is not something anybody can do; it demands connoisseurship, selectivity, and a thorough understanding of the art market to be able to garner strong returns. Our 32-year experience in art management will allow the Guernica V. Fund to capitalize on opportunities created by the market dislocations arising from the pandemic.”

The Guernica V. Fund will offer investors access to art investment opportunities without the difficulties and challenges of navigating the art market personally, and Artemundi has been working to increase the market’s accessibility for decades. “The plan is to not only be the market leader by doing things right, but to combat opaque industry conduct and drive the art market toward a level of transparency and regulation that welcomes newcomers and fosters healthy future growth,” added Lumbreras.

Lumbreras, an art collector and investor himself, will be leading the Guernica V. Fund’s investment management in consultation with a Management Advisory Council formed by a seasoned team of art market professionals. With over 32 years of experience managing art as an alternative asset, Lumbreras is a recognized authority on art investments, having previously launched Artemundi Global Fund during the 2008 financial recession. This fund successfully achieved a 17.41 proforma IRR net to investors, after all fees, expenses and deductions.

Since then, Artemundi has held numerous co-investments, joint ventures, and private accounts. The devastating economic conditions created by this global crisis then spurred the launch of a new short-term fund to better protect investors’ assets in an uncertain time.

Strict investment protocols, administrative procedures, and powerful partnerships place the Guernica V. Fund solidly above its competition.

The Guernica V Fund has selected Liberman Canna LLP in the USA and DLaw S.a.r.l. in Luxembourg to handle its legal affairs, and expects to benefit from the expertise of the Art Law + Art Funds practice of Liberman Canna that is headed by Enrique Liberman, the president of The Art Fund Association and a recognized authority on art fund formation and governance. The Guernica V. Fund will be audited by Deloitte and administered by Apex Funds. The investment manager’s experience in handling all issues associated with the underlying asset, as well as the intricacies of a largely unregulated art market, mitigates risks to the fund’s investment program.

The investment plan covers the United States and Europe, with a master fund in Luxembourg and a Delaware fund. The Delaware fund, Guernica V Fund (US), LLP, will accept capital from US “accredited investors” for investment into the Luxembourg master fund, Guernica V Fund, SLP.

Culture Editor