Investment Strategies

The different Investment Strategies & Club Deal

NexeArt Capital (a subsidiary of nexeone capital) has identified three investment strategies in addition to the “coup de coeur”, based on its experience and expertise in both art and private equity

 

Short-term investment strategy (one year holding) with a target IRR of 5 to 7%

Buyers aim to earn more than in other markets as they would in real estate or equities in a short period of time. our ability to source better than others and to certify your purchases is a guarantee of seriousness and the ability to earn more quickly than on traditional markets, by anticipating the resale of your works.

NexeArt Capital’s remuneration :

  • NexeArt Capital and its client/partner will draw up an engagement letter with the client/partner’s IRR and holding criteria and objectives
  • NexeArt Capital will charge a consulting and research fee based on the price of the work (max 15%) and its potential annual irr of between 5 and 7% of the purchase price, and more in certain cases*.

At the end of the year of ownership :

  • The client can resell his work to guarantee his return on investment, through nexeart and its network of national and international collectors, in which case NexeArt Capital will charge a commission of no more than 15% of the sale price, as opposed to 20 to 30% in auction houses.
  • Selling one’s work by itself without any guarantee of return on investment.

Creation of a short-term club deal :

For ambitious short-term investments (minimum €30,000), NexeArt Capital may create a club deal with a limited number of investors and will draw up a letter of engagement with each participant summarising the target holding and IRR objectives.

  • NexeArt Capital will be remunerated for the search for and purchase of the work and may take a % of the potential capital gain at the end of the investment period depending on the outcome of the sale. This remuneration will be specific to each case and will be the subject of an engagement letter between the parties.

Medium-term investment strategy (2 to 3 year holding period)

Buyers are looking to earn more than in other markets as they would in real estate or equities quickly. Our ability to source better than others and to certify your purchases is a guarantee of seriousness and the ability to earn more quickly than on the traditional markets, by already anticipating the resale of your works in the medium term

NexeArt Capital’s remuneration :

  • NexeArt Capital and its client or partner will draw up an engagement letter with the client/partner’s IRR and holding criteria and objectives.
  • NexeArt Capital will charge a consulting and research fee (maximum 15% of the purchase price depending on the price of the work and its potential annual irr, (between 8 and 10%) and more in certain cases depending on the purchase price and the appeal of the work to the artist.

At the end of the holding period

  • The client may resell the work to guarantee a return on investment, through us and our network of national and international collectors. In this case, NexeArt Capital will charge and take a commission of no more than 15% of the sale price, compared to 20 to 30% in auction houses.
  • Sell your work by yourself with no guarantee of return on your investment.

Creation of club deal in the medium term:

For ambitious medium-term investments (minimum €50,000), Nexeart Capital may create a club deal with a limited number of investors and will draw up a letter of engagement and mutual commitments with each participant, summarising the holding objectives and target IRR.

NexeArt Capital will be remunerated for the search for and purchase of the work (minimum 10% and more depending on the latent gains) and may take a % of the potential capital gain at the end of the investment period depending on the outcome of the sale.

 

Long-term investment strategy (holding > 5 years)

Buyers are looking to earn more than in other markets as they would in real estate or equities quickly. Our ability to source and buy better than others and to certify your purchases is a guarantee of seriousness and the ability to earn more quickly than in the traditional markets, by anticipating the resale of your works / acquisitions in the long term

NexeArt Capital remuneration:

NexeArt Capital and its client or partner will draw up an engagement letter with the client/partner’s irr and holding criteria and objectives.

NexeArt Capital will charge a consulting and research fee of up to 20% of the purchase price depending on the price of the work and its irr potential, between 15 and 20% and more in certain cases depending on the purchase price and the appeal of the work to the author*.

At the end of the holding period

  • The client may resell the work to guarantee a return on investment, through nexeart capital and its network of national and international collectors. in this case, nexeart capital will charge and take a commission of no more than 15% of the sale price, compared to 20 to 30% in auction houses;
  • Sell his work by himself with no guarantee of return on his investment.

Long term CLUB DEAL :

In the case of ambitious long-term investments (minimum €80,000), Nexeart Capital may create a club deal with a limited number of investors and will draw up a letter of mission and mutual commitments with each participant, summarising the holding objectives and target IRR.

NexeArt Capital will be remunerated for the search for and purchase of the work (12% minimum and more depending on the latent gains) and may take a % of the potential capital gain at the end of the investment period depending on the outcome of the sale. this remuneration will be specific to each case and will be set out in the mission letters.

*for information purposes, without any commitment on the part of nexeart, based on variations in the art market and the team’s track record – see the general conditions of the site – nexeart cannot be held responsible for a drop in the art market and the prices of works.