Bloomberg’s Scott Reyburn profiles a new art fund launching in Luxembourg to feed the now nearly $1bn art fund business. This new $80m fund is called The Art Collection Fund:

“The fund is aimed at people who want to invest in art and who haven’t time to be collectors,” the fund’s founder and chief executive, Stanislas Gokelaere, 43, said in an interview. “We want to educate them and bring them close to this world.” […]

Gokelaere, a former head of mergers and acquisitions at the brewer InBev, is an established French collector of tribal art, as well as of modern and contemporary works. Bernard Steyaert and Florence de Botton, former European-based executives at Christie’s International, are the other members of the team.

“We’ll be buying blue-chip works priced between 100,000 euros ($130,400) and 3.5 million euros,” Gokelaere said. “We won’t acquire cutting-edge pieces and we’ll be concentrating on slightly lesser-known names that appreciate in a slower, stronger way. We want to avoid bubbles.”

Works by second-tier abstract expressionists Joan Mitchell and Arshile Gorky were suggested as possible investments.

About 65 percent of the collection will be devoted to modern and contemporary art, Gokelaere said. Participants will be able to borrow and live with works equivalent to the value of their commitments.

Art Investors lured by 12 percent return promise from $80 million fund (Bloomberg)