MXG GROUP · MONACO · MMXXVI
1297
ART FUND
A single collection of important art, in residence across the 1297 hotels, clubs and galleries — Monaco, Paris, London.
01THE PROPOSITION
ART THAT LIVES WHERE IT IS SEEN.
The 1297 Art Fund acquires and curates a museum-grade collection of modern and contemporary art. It is presented — permanently — across the 1297 portfolio: hotels, private members' clubs and dedicated galleries.
Conventional art funds store their collections in bonded warehouses. They pay to hold, pay to insure, pay to move, and give up half the upside to sell. The 1297 structure inverts each of these costs. The gallery is a design requirement of every property. Display, security and daily care are embedded in buildings that want the art present.
Works are held for appreciation and sold when the moment is right — often to the guest or member standing in front of them. No dealer margin. No auction fee.
ONE FUND. ONE COLLECTION.
Every acquisition works from the day it is bought: exhibited, documented, insured, and in front of a qualified audience — daily.
- One of the largest acquisition pipelines in fine art — an extensive network of estates, foundations, private collections, dealers and artists' studios, giving first access before works reach the open market.
- A rotating collection across the full 1297 network — each work builds a documented exhibition history.
- Dual return engine: long-term appreciation plus direct sales at full retail value.
- Costs partially absorbed by the operating properties the art elevates.
- Institutional standards of provenance, conservation and custody.
GRIMALDI GARDENS — MONACOTHE FIRST 1297 PROPERTY · EVERY PROPERTY CARRIES A GALLERY
02THE MARKET
THE NUMBERS BEHIND THE WALLS.
$59.6BN
GLOBAL ART SALES 2025 — FIRST GROWTH SINCE 2022 (+4%)
+40%
SALES OF WORKS ABOVE $10M, YEAR ON YEAR
$992BN
ART & COLLECTIBLES CHANGING HANDS OVER THE NEXT DECADE
51%
OF WEALTH MANAGERS NOW OFFER ART SERVICES — UP FROM 25% IN 2011
46%
OF NEW CHRISTIE'S BUYERS ARE MILLENNIAL OR GEN-Z
41.5M
TRANSACTIONS IN 2025 — ACTIVITY UP ACROSS EVERY TIER
The high end led the recovery. Wealth is converging on art as an asset of record, and the buyer base is renewing itself a generation at a time. The new collector discovers art in lifestyle settings — not in the auction room.
That is where 1297 operates. Most hospitality art programmes are decorative and leased. A fund that places genuinely important works into these environments, with institutional rigour, occupies ground with little competition.
Sources: Art Basel & UBS Global Art Market Report 2026; Deloitte & ArtTactic Art & Finance Report 2025.
03THE PLATFORM
A GALLERY IN EVERY PROPERTY.
GRIMALDI GARDENS
MONACO — HOTEL & BEACH CLUB
The first 1297 property. A dedicated gallery at its heart, with curated placements through every public room and suite.
AURELIA
MONTE-CARLO — HOTEL & RESIDENCES
Twin towers over the Larvotto. Sky restaurant, private apartments, hotel floors — and exhibition space woven through the podium.
LA TRÉMOILLE
PARIS — HOTEL
A Haussmann address in the golden triangle. The Paris room of the collection — steps from Avenue Montaigne.
THE GALLERIES
MONACO · PARIS · LONDON
Standalone commercial galleries: exhibition programmes, private views, commissions — and the network's selling arm.
The collection rotates through this network on a curated calendar. Each property stays fresh. Each work accumulates provenance, publication and public display — the record that supports value on exit.
WALLS THAT DESERVE THE WORKGRIMALDI GARDENS — GALLERY HALL · SUITES · THE ATRIUM
LA TRÉMOILLE — PARISTHE COLLECTION'S PARIS ADDRESS
AURELIA — MONTE-CARLOTWIN TOWERS OVER THE LARVOTTO · THE AURELIA ROOMS
04THE COLLECTION
BOUGHT WITH DISCIPLINE.
| TIER | MANDATE |
|---|---|
| CORE — 50% | Blue-chip modern and contemporary works by established, auction-validated artists. Deep secondary markets. The store of value. |
| GROWTH — 35% | Mid-career artists with institutional momentum — museum acquisitions, biennale presence, first-rank representation — bought before full price maturity. |
| EMERGING — 15% | Early positions sourced through the 1297 gallery programme, residencies and commissions. Higher risk, asymmetric upside, exclusive content for the network. |
BUYING RULES
- Approximately 150–300 works over the investment period. Quality over volume.
- Provenance, condition and authenticity verified independently before every purchase. No work without clear title.
- Pricing anchored to comparable auction records and independent valuation.
- No single work above 10% of the portfolio at cost.
SOURCING & REALISATION
Acquisitions flow from one of the deepest pipelines in fine art — estates, foundations, private collections and studios — much of it never reaching the open market. On exit: direct sales to guests and members, private treaty through the 1297 galleries, selective consignment to the major houses when a market peaks.
Every acquisition must pass one test: a museum would envy it, and the market will want it.
05SOURCES OF RETURN
FOUR WAYS THE ART PAYS.
| ENGINE | MECHANISM |
|---|---|
| APPRECIATION | The principal driver. Works acquired well, exhibited continuously and documented publicly command premiums on resale. |
| DIRECT SALES | Sales to guests and members at full retail value — the dealer and auction margin conventional funds surrender, retained. |
| EXHIBITION INCOME | Display fees from 1297 properties, loans to institutions, and gallery events — offsetting the collection's operating cost. |
| COMMISSIONS & EDITIONS | Commissioned works, limited editions and artist collaborations developed through the gallery programme. |
06INDICATIVE TERMS
THE STRUCTURE, IN BRIEF.
| FUND | 1297 Art Fund — Luxembourg SCSp SICAV-RAIF, consistent with the existing 1297 fund platform |
| TAX | No Luxembourg income or wealth tax at fund level — 0.01% annual subscription tax only; fiscally transparent; no Luxembourg withholding on distributions to non-residents. Independent advice required |
| TARGET SIZE | €50–100 million in aggregate commitments |
| MINIMUM | €500,000 — professional and qualified investors only |
| TERM | 8 years from final closing; two one-year extensions |
| INVESTMENT PERIOD | Years 1–4 — acquisition and placement across the network |
| SPONSOR | 1297 invests alongside investors on identical terms |
| MANAGEMENT FEE | 1.5–2.0% p.a. on commitments; on NAV thereafter |
| PERFORMANCE FEE | 20% above a 6–8% preferred return, full catch-up — to be finalised |
| VALUATION | Independent annual valuation; quarterly NAV reporting |
| DISTRIBUTIONS | Net proceeds distributed or selectively recycled during the investment period |
| REPORTING | Quarterly reports; audited accounts; full catalogue access |
| GOVERNANCE | Independent Art Committee; arm's-length agreements with 1297 properties |
Indicative, for discussion only. Superseded in all respects by definitive documentation. Not an offer of securities.
07CUSTODY & RISK
KEPT PROPERLY. STATED PLAINLY.
THE STANDARD OF CARE
- Nail-to-nail fine-art insurance at full replacement value — display, storage and transit.
- Museum-grade climate, lighting and handling in every 1297 gallery; condition reports around every movement.
- A central registrar holding the full record of every work: provenance, condition, exhibition history, valuation, location.
- An Art Committee combining 1297's curatorial leadership with independent members — a senior curator, a market economist, a conservation specialist.
THE RISKS, WITHOUT VARNISH
- Art prices are cyclical and sentiment-driven. They fall as well as rise.
- Art is illiquid. Sales can take months or years; the term may extend to avoid selling into weakness.
- Valuations are estimates. Realised prices may differ materially.
- Authenticity, title, physical damage, currency and tax risks are mitigated — never eliminated.
- The strategy is linked to the development of the 1297 property network.
08THE DOCUMENTS
THE DATA ROOM, AS IT BUILDS.
| DOCUMENT | |
|---|---|
| 1297 Art Fund — Investment Proposal The full 16-page proposal: proposition, market, platform, collection strategy, terms, custody and risk. |
OPEN PDF |
Further documents are added as the data room builds. Access is recorded.
NEXT
THE FIRST HANGING.
Q3 2026 — investor discussions; structure and terms finalised with counsel.
Q4 2026 — definitive documentation; first closing; Art Committee constituted.
2027 — first acquisitions; inaugural exhibitions at Grimaldi Gardens and the first gallery.