Late last week we saw The Fine Art Fund’s Philip Hoffman appear in an article where he discussed having 18 billionaires among his clients. This week, we learn that it is 30 times bigger than it was three years ago:
As small groups of people get richer in various countries across the world, observers say, they’re putting money into art both to gain status and invest in something new. Many have never put their money into art before.
“What we’re seeing is that wealth is expanding in Latin America and the Middle East,” said Phillip Hoffman, head of the Fine Art Fund Group, which consults with wealthy clients who want to buy art. “The new rich like to enjoy art, show it off, have it as an alternative asset.”
Hoffman’s company is 30 times bigger than it was three years ago, he said, as more wealthy clients become interested in owning art. He has 120 clients — most from Asia, Europe and Latin America — who have never owned art before. In fact, one of them dropped $67 million on two paintings.
About 3% of the world’s wealthy now own art, but Hoffman estimates that figure will grow to 30% to 40% in the next decade.
New wealth taking art market to new heights (LA Times)
