DAY STAR FINE ART
Art as and Asset Class
Our mission is to create more liquidity in the art market and help artists, collectors, art dealers, museums and other professionals to profitably leverage and monetize works of art allowing a wider range of investors to diversify in art investments while we build a valuable collection of contemporary art in the medium and long term.
WHY INVEST THROUGH A FUND?
Funds provide diversification and economies of scale by pooling assets to gain greater exposure across the art world. Diversification across geographies and mediums are essential to avoid concentration risks. Economies of scale allow for assembly of research and operational expertise, management skills, as well as buying and selling power.
Having a robust infrastructure is essential in order to support the acquisition of large scale works and a global lending program. In turn, museum exposure for artworks in the collection enhance the value of these works, creates visibility for the collection and eventually build, which in itself enhances the value of every work in the collection.
A virtuous circle.
Corporate governance and a regulated structure protect investors from potential conflicts of interest, as well as providing tax efficiency and regular accounting and reporting.
A clearly defined investment strategy, with proper risk management and exit strategy.
Independence and objectivity of the service providers of the fund, and related segregation of duties.
Combining social responsibility, intellectual rigor, education and lifestyle enhancement for interested investors
Eligible investors have the possibility to borrow or acquire works from the collection.
Day Star Collection Inc. cannot by statute be offered to the general public. Day Star Collection as a collective investment scheme exempt.
The Exempt Plan has received great interest from local and international investors. It is a flexible and cost-effective structure that is particularly beneficial for use by HNWI and family offices. There were more than 170 of these schemes in operation during 2013, with a total net asset value of around USD $ 5.5 billion.
An exempt scheme can also hold non-financial assets, examples of which might include yachts, aircraft, art and antiques and intellectual property. The scheme it can obtain investment advice from any source. It is also flexible in that additional sub-funds can be added to accommodate different investment objectives or strategies or to segregate particular assets.
Day Star Collection cannot by statute be offered to the general public. Therefore private investors can maintain the focus of the fund objectives and underlying assets. The fund can, however, be converted in to a Specialist Fund or a Qualifying Fund, if required. The investment fund is not commercially distributed, the scheme can not be accessed without particular invitation.
OUR FINE ART ACTIVITIES
CONTEMPORARY ART COLLECTION
Contemporary art is the fastest growing segment of the circa US$60 billion per annum global art market, but also the most volatile. It has the greatest potential for market outperformance, but professional guidance is the key to successful investment in this area. When the right selections are made price appreciation can be exceptional. Contrary to the myth that artists' works appreciate mostly after death, artists usually appreciate the most during their lifetime.
Particularly, we believe that works made during the last two decades in emerging markets, with the underpinnings of an era of significant social flux, are the most likely to appeal to the current generation of new wealth. Locally established artists in emerging economies, yet to gain international recognition, present the greatest opportunity.
STRUCTURING ART INVESTMENT FUNDS
In 2012, we launched our first investment fund, Day Star Fine Art Fund I dedicated to masterpieces of 20th century artists, active until the end of 2017; Today in 2019, after rethinking our activities and a deep restructuring of the company, the founding partners have resumed the activity with new challenges and focused on contemporary artists. Currently we advise several funds each investing in different areas of the art market. Our existing investors include family offices, high net worth individuals, promoters and private banks.
We have the best experts in different jurisdictions, we can also deal with blockchain securitization of the fund.
We have built up a team with a wide and deep understanding of the art market to seek investment opportunities on behalf of our clients, sourcing deals from both auctions and private sales. All of our investments are subject to the same exacting due diligence process that we apply to purchases made for our private clients.
We continue to explore new projects in the art market.
Our funds are managed outside the UK. We are not authorised or regulated by the Financial Conduct Authority and are not able to offer investment advice. Anyone considering an investment should consult their own professional investment adviser.
ART RENTING - ART LEASING
Day Star Collection provide liquidity to the Art renting program. Art renting is a convenient, flexible and economical way for clients to enjoy fine art in their hotels and offices. Renting is also available for special events and for home staging.
The fund is a new way to curate environments through art leasing. Working closely with real estate developers, corporations and hospitality groups, we provide innovative and cost-effective ways to showcase significant works of art within every scale of space or project, maintaining and elevating the backdrop and culture they have carefully curated.
Day Star Collection provide liquidity to the Art Lease-Back program. We’ve initiated the most innovative financing solution for art collections, the sale-leaseback. This entails a financial transaction in which clients owning fine art may sell portion or the totality of their collection to Day Star Collection. We then subsequently lease the pieces back to them at a yearly rate.
The lease agreement provides the client with the option to repurchase the collection at any time during the lease at a per annum premium modestly above the initial sale price.
FINE ART LENDING
In an effort to broaden our support of the art world, we offering art secured loans for those with shorter term credit needs. We specialize in asset-based financing using art, and art alone, as collateral.
We serve collectors, art dealers and galleries, wealth managers and other professionals:
Collectors by allowing them to unlock the value of their collection while maintaining possession of the artworks.
Art dealers and galleries by enabling them to secure liquidity to expand their operations and finance their inventories.
Wealth managers, estate planners, lawyers and other professionals by providing them with additional flexibility to manage and monetize their clients’ collections.