• Media type: Report; E-Book
  • Title: Art collectors as venture capitalists
  • Contributor: Whitaker, Amy [Author]; Kräussl, Roman [Author]
  • Published: Frankfurt a. M.: Goethe University Frankfurt, Center for Financial Studies (CFS), 2023
  • Language: English
  • DOI: https://doi.org/10.2139/ssrn.4316020
  • Keywords: Z11 ; venture capital ; G11 ; L31 ; social impact ; D31 ; portfolio management ; tax arbitrage ; Art investment
  • Origination:
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  • Description: Employing the art-collection records of Burton and Emily Hall Tremaine, we consider whether early-stage art investors can be understood as venture capitalists. Because the Tremaines bought artists' work very close to an artwork's creation, with 69% of works in our study purchased within one year of the year when they were made, their collecting practice can best be framed as venture-capital investment in art. The Tremaines also illustrate art collecting as social-impact investment, owing to their combined strategy of art sales and museum donations for which the collectors received a tax credit under US rules. Because the Tremaines' museum donations took place at a time that U.S. marginal tax rates from 70% to 91%, the near "donation parity" with markets, creating a parallel to ESG investment in the management of multiple forms of value.
  • Access State: Open Access