Private equity money looking like VC money, in art businesses
Posted by: in Raising MoneyFiled under: Management, Raising money, Venture capital industry, Private equity industry, Investments
IndexAtlas has announced the launch of the $50 million Art Industry Fund, an substitute private equity fund targeting only businesses that serve the art industry.
This will include such operations as auction houses, advisory services, financial and security firms, software and media companies. Each investment is intended to last four years and will range from $3 to $8 million. The fund is expected to shut by December 31, 2009.
CEO and founder of IndexAtlas, Sergey Skaterschikov, believes the fund will generate an IRR of 35% and bases his investing strategy on his book, “Skate’s Art Investment Handbook.” Skaterschikov established IndexAtlas in 2001 and manages $400 million in fully invested funds and has advised on $2.4 billion in transactions.
There have been many such reports in here showing how there has been a convergence of private equity and venture capital. If this isn’t a prime example of that, then nothing else is.
If I didn’t know better, it nearly sounds a lot like a Sotheby’s (NYSE: BID) incubator fund, although it’s not.
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