Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/268898 
Year of Publication: 
2023
Series/Report no.: 
CFS Working Paper Series No. 696
Publisher: 
Goethe University Frankfurt, Center for Financial Studies (CFS), Frankfurt a. M.
Abstract: 
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.
Subjects: 
Art investment
venture capital
social impact
portfolio management
tax arbitrage
JEL: 
G11
L31
D31
Z11
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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