Yieldstreet will launch a fund that allows retail investors to purchase artworks from a portfolio. This is in an effort to capitalise on the rising prices and high demand for fine arts.

Fund is just one in a long line of businesses and start-ups that offer consumers the opportunity to purchase small ownership stakes, which allows them to make investments in art and collectibles. Although art funds have existed since the 1960s, this new breed of fund utilizes advanced technology, digital platforms, and artificial intelligence to buy and sell valuable works. Masterworks recently raised $1 billion for its funding round. Investors can buy $20 shares and securitize individual paintings.

Yieldstreet today announced The Art Equity Fund’s launch. This fund is a collection of portfolios of artworks by prominent post-war and contemporary artists. This first fund will be less than $10 million and will feature works from Keith Haring, Kenny Scharf, George Condo, and Kenny Scharf. According to the company, future funds will work with artists experts to cover a wide range of styles and periods.

Yieldstreet allows retail investors to make investments in many assets that are normally only available for the rich. Athena Art Finance makes loans, and Yieldstreet advises them on their Art Investment Funds. Yeildstreet indicated that they will draw on years of Athena research and proprietary data to determine the highest-valued works by top artists.

Rebecca Fine, the managing director of Yieldstreet Art Finance, said that funds aim to earn returns between 15%-17% (net of fees). Minimum investment for the fund is $10,000. It will hold for 5 years with 2 one-year extensions.

Fine stated, “We have so much confidence and conviction in our lending model that it is now the organic next stage in the segment.”

Art funds face the challenge of earning consistent profits in an opaque, cyclical market. Indicators that track art prices have performed better than the average index over the past 10 years. S&P 500. However, it is not clear how long this art boom will last.

Collectors would rather buy art that they can hang on their walls than just for the profits. Fine stated that although the specifics are still being worked out, Fine explained that the company plans events to allow investors to view artworks and hear from experts about the art of collecting.

Fine stated that the platform will have a strong experiential component. We hope to encourage them to buy art, and to build their own collections.