Paris' renowned museum, the Louvre, is launching a U.S.-style endowment in February with €175 million received to set up an Abu Dhabi offshoot, Bloomberg reports. It will receive an additional €250 million from the Gulf emirate between now and 2027.
One of the 18 banks, including UBS and JPMorgan Chase, competing for money-management business from the Louvre, will manage the fund. The museum will use the money to improve access, build a storage and conservation center, renovate its Greek and Roman art wing and open new sections.
Based on an average annual return of 5.5 percent, which the Louvre is aiming for, the endowment today would yield some 10 million euros a year.
Each year the Louvre raises as much as it gets from the state, or approximately 122 million euros. The government pays for running costs: salaries, safety and maintenance. The rest -- new wings, refurbishments, acquisitions -- is for the museum to fund.
Source: Bloomberg
