Yieldstreet hails benefits of P2P art investments
Yieldstreet has hailed the benefits of art investments as part of a peer-to-peer investment portfolio.
The US-based P2P lending platform said that fractional ownership can allow retail investors to build up a pool of artworks by blue chip, mid-career, and emerging artists.
According to the Artprice 100 index, art investments have outperformed the S&P 500 over the past 23 years, with returns of more than 360 per cent. However, Yieldstreet warned that choosing individual artists and artworks is extremely high risk.
“Fractional ownership can also take a lot of the guesswork out of investing in art,” said a Yieldstreet spokesperson.
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“The best funds employ third-party appraisals and expertise… While contemporary artworks can be prohibitively expensive for mainstream investors, the concept of fractional ownership, like P2P lending, can put more costly investments within easier reach.”
The lender’s comments come after it was revealed that US financial advisory firm Kubhera has joined the P2P lending platform as its first registered investment advisor (RIA) partner.
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This means that Kubhera’s more than 300 clients can now invest in alternative assets such as art, real estate and venture capital through Yieldstreet’s platform.
“Yieldstreet was the clear choice when we sought out a platform that could offer our clients the potential benefits of private market exposure,” said Kubhera’s principal Venkat Krishnaswamy.
“This partnership will help more people gain access to strategies that have historically been confined to the institutional investment class, such as art diversified debt portfolios that offer shorter terms while potentially generating strong yields.”
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