2020 has been a transformative year for the global art market. The COVID-19 pandemic in the first quarter of 2020 hit the art market hard with art fair cancellations, gallery closures, and public auction delays. Through Q2, however, the major auction houses, namely Christie’s, Sotheby’s and Phillips, quickly pivoted and shifted their traditional public, in-person spring sales events to online formats. This transformation was highly successful, with all three auction houses posting strong results. The private segment also saw robust sales throughout the spring and summer.
Much of the demand through Q3 stemmed from serious art collectors’ migration from cities to large suburban and rural homes that were then furnished amid state mandated stay-at-home orders. As such, art valuations in the blue-chip part of the market, where Athena Art Finance focuses, held up well. This is supported by recent third-party annual reappraisals coming in generally at or slightly above last year’s valuations.
Below are updates to currently active Yieldstreet Art offerings. Sign up below so you don’t miss out on upcoming art offerings.
Since its inception, the Post-War and Contemporary Art Portfolio II has performed as expected, even in light of a slight COVID-19 related modification in April, and has matured on 10/1/20. Pending normal processing time of a few weeks after the stated maturity date, we expect this investment to fully repay principal and interest to its target yield of 10.25% at maturity.
The Post-War and Pop Art Portfolio has performed as expected since its launch, however, the maturity date of the loan is being extended one month from 9/30/20 to 10/30/20. Monthly interest was paid on 10/1/20 and this loan is still expected to achieve its targeted yield of 10% to investors.
The Impressionist and Modern Art Portfolio is performing as expected. We expect this investment to continue to make monthly interest payments to investors at the stated target yield, 10.25%, until the target maturity of 2/1/21.
Since its inception, the Diversified Art Portfolio I has performed as expected. This portfolio’s composition is expected to change over time with paydowns of current loans and the possible addition of new loans. Loans D, H and K have paid back in full. The current outstanding loans and balances can be found below:
We expect this investment to continue to make monthly interest payments at the stated target yield of 9% in addition to event-based principal payments.
While the future is difficult to predict in these unprecedented times, it appears that rare and coveted blue-chip artworks fared relatively well through the current COVID-19 period. We now await the fall’s public auction and private sales season to see if this market trend will continue through year-end.
You can expect to see upcoming Art investment offerings should you be interested in reinvesting your capital by putting it back to work in Art.
1 Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in significant losses.
2 Represents a net estimated, unrealized annualized internal rate of return (IRR) of your portfolio and is based by reference to the effective distribution dates and amounts to and from the investments, as well as any outstanding principal and accrued and unpaid interest as of the current date, after deduction of management fees and all other expenses charged to the investments.[read more]
3 "Annual interest" represents an annual target rate of interest and "term" represents the estimated term of the investment. Such target returns and estimated term are projections of the returns or term and may ultimately not be achieved. Actual returns and term may be materially different from such projections. These targeted returns and estimated term are based on the underlying agreement between the SPV and borrower or originator, as applicable.
4 Reflects the initial quarterly distribution declared by the board of directors on February 6, 2020, which will be payable to stockholders of record as of June 10, 2020, and the initial offering price of $10 per share.
5 The Fund will cease investing and seek to liquidate the Fund's remaining portfolio no later than 48 months after the Fund's initial closing. It may take up to twelve months thereafter to fully monetize any remaining illiquid investments in the Fund's portfolio.
6 Represents the sum of the interest accrued in the statement period plus the interest paid in the statement period.
7 The internal rate of return ("IRR") represents an average net realized IRR with respect to all matured investments weighted by the investment size of each individual investment, made by private investment vehicles managed by YieldStreet Management, LLC from July 1, 2015 through and including September 10th, 2020, after deduction of management fees and all other expenses charged to investments.
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