Simmons & Simmons lawyer puts faith in contemporary art
Stuart Evans, a corporate lawyer at Simmons & Simmons, has launched a contemporary art fund which aims to raise £5m (€6.4m).
The fund, Lodeveans Contemporary, has so far raised £1m from the Evans family and a small number of its partners. Subscriptions are set at a minimum of £50,000. Initial purchases, up to last September, have registered a total gain of 30%, according to a valuation by auction house Sotheby's.
Evans said: "We are confident we can generate gains of 15% a year over time. It is probably fair to say that this is a better time to buy than to sell. I know several private equity people who have told their wives to close their handbags."
Evans has built a collection of contemporary art for Simmons & Simmons, where he advised Spanish telecoms company Telefónica on its purchase of the UK's O2 mobile phone operation.
He was an enthusiast for the works of Damien Hirst before the artist struck fame with his display of dead sheep in formaldehyde tanks.
Judging which contemporary artists will fare the best is difficult. Evans said: "I spend a great deal of time talking to dealers and other professionals in the field. Thomas Dane, one of Britain's top dealers, helped to convince me that Hirst had a future."
Evans' strategy involves putting works of art on display at exhibitions: "That appeals to artists, who like the idea of getting their efforts appreciated. As a result we get the chance to buy some of their best work."
Investors in the Lodeveans fund that are registered with the Financial Services Authority are charged 2% of assets under management, plus 20% of net gains. They are given the chance to borrow works of art to display in their homes and offices.
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