Anita Heriot, President of the Americas for The Fine Art Group, was interviewed by journalist Katya Kazakina for Artnet News’ latest article, “Why the Biggest Blue-Chip Art Collectors in the World Are Suddenly Pumping Hundreds of Millions of Dollars Into Baseball Cards.”
Read More on Artnet.com
Read the Full Artnet Article
Art can be the glue that binds a family and can create a lasting financial legacy. Anita Heriot, President of the America’s, shares her art collection journey with one Tiger21 family.
At the most recent installment of summer sales, traditionally held in London in June, Phillips instead started the cycle in New York, as part of the now common shifting of auction locations and dates.
Held at their newly opened headquarters, the Phillips sale generated an above estimate $98 million hammer, more than double their 2020 total and up nearly 20% from its May 2019 sale. That being said, it’s important to note Phillips opted not to hold a London sale, pushing their ‘May sale’ to June which no doubt assisted volume. Strong evidence of this was the unusual inclusion of a Winston Churchill painting, which surely was destined for a London summer sale but was moved into their hybrid New York lot list, likely impacting the result, selling on just one bid.
The following week Sotheby’s and Christie’s presented their multitude of cross category evening sales, although in fact held in the afternoon so as to allow for global bids from New York and Hong Kong. Sotheby’s staged a British Art Evening sale, then followed by a Modern & Contemporary Art Evening sale which traversed art history with works by Degas and Monet to Mark Bradford and Julie Curtiss. The top lot of the evening being the 1937 Kandinsky estimated at £18 – 25 million, it sold for £18.3 million hammer (£21.2 million premium). Their eighty-three lot sale totalled a hammer of £130.3 million against a presale estimate of £119.7 – 170.3 million. Twelves lots, however, were withdrawn, some well before the sale and whose presence is now unknown to all but Sotheby’s as the auction house rapidly removed them from their online catalogue where possible. These works totaled well over £10 million in low estimates, which technically results in a below target sale total.
There was strength in the early part of both Sothebys’ evening sales, with deserving lots including Hockney’s Gladioli painting and Freud’s Portrait of David Hockney performing well. The latter for a hammer price of £12.8 million (£14.9 million premium) selling to James Sevier’s client after being chased by more than six bidders through to the top end of the bidding. Towards the second half of both sales, however, bidding began to feel thin with many lots selling on a single bid around or often below the low estimate. Over half of their sale was guaranteed and the lack of deep bidding proved this was required to help ensure their 93% sell through rate.
Christie’s opted to combine the 20th and 21st centuries into one sale with the collection of Francis Gross and a Paris evening sale following on, in the now normal relay fashion. With a total of ninety-four lots across the three sales, and a presale estimate around £114 – 167 million, (not including the four lots that were withdrawn, comprising just over £5 million in low estimate) the sales brought in a total of £119 million hammer. Considering the withdrawn lots, the three sales achieved within the low end of their presale expectations and similarly to Sotheby’s, apart from some key works by Picasso, James Ensor and Bridget Riley, several works sold on just one or two bids. Interestingly none of the Paris lots were guaranteed, compared to over half of the London auction, which resulted in an 87% sell through rate across all three sales. Top lots by value included Picasso’s L’Étreinte (1969) selling for £14.7 million (premium) and a René Magritte, La Vengeance (1936) which sold well above its €6 – 10 million estimate for €14.6 million (premium).
The strength of the Asian market continued to help propel these auctions. Phillips saw strong Hong Kong bidding on several lots, primarily for younger artists. Lot one at Sotheby’s, Jadé Fadojutimi, was chased by almost exclusively Hong Kong bidders and several clients of Patti Wong bid significantly on the higher end lots, notably Degas and Picasso. And similarly at Christie’s, artworks by Condo, Degas, Kusama, Chagall, Miro, Leger, Klee and Stanley Whitney all went to Hong Kong phones, with Asian bidding on over a third of lots in the London segment.
Also of note is the increasing number of lots for which the auction houses are accepting cryptocurrencies. Sotheby’s notionally accepted Ether or Bitcoin for their Banksy Laugh Now painting estimated at £2.5 – 3.5 million, it sold for a single bid at £2 million hammer. Christies also offered this for their 1984 Keith Haring painting estimated at £3.9 – 4.5 million, again selling on just one bid for £3.9 million to the third-party guarantor. Whilst the houses are clearly trying to tailor the works they select for this to a specific clientele, it certainly didn’t have the effect the consignors and houses alike were hoping for and will be interesting to see how this develops in future sales.
As has been the case over the last several sale cycles, emerging and historically under-represented artists continue to see the bulk of interest. Phillips set a new record for Avery Singer at $4.1 million (premium); Singer’s previous auction high, $3.1 million, was set just a month ago at Christie’s Hong Kong. Records were also set for Julie Curtiss, whose painting Three Widows (2016) sold for $466,200, more than double the $150,000 high estimate, and Titus Kaphar, whose portrait sold for just over $1 million, well above its $400,000 high estimate.
The reduced estimate for Phillips’ top lot, further demonstrated where heat in the market still lies. David Hockney’s A Neat Lawn (1967), was reduced from a low estimate of $12 to $9.5 million, accompanying a last minute third party guarantee, to whom it sold. Also of note in the Phillips sale was Jeff Koons’ Gazing Ball sculpture, surprisingly offered with no reserve, selling for $800,000 hammer ($998,000 premium).
In the current auction climate prices for young, figurative painters are exceeding that of some of the most historically expensive artists at auction, including Koons and Picasso. The auction debut for Flora Yukhnovich, estimated at $60,000 – 80,000 in the Phillips day sale, being a prime example, selling for an astonishing $950,000 hammer ($1.2 million premium). With only five solo shows to date and the artist having never received an institutional exhibition, the level of speculative buying has reached new heights.
During the London sales the situation was similar but less aggrandized due to the material, instead emphasizing the limited demand for the more traditional areas of the Impressionist & Modern market. At Christie’s, an exceptional work by Kirchner, Pantomime Reimann: Die Rache der Tänzerin (1912) sold on just one bid for £6 million hammer, whereas works by George Condo, Elizabeth Peyton and Bridget Riley experienced much more global and spirited bidding. Riley’s Zing 2 (1971) successfully sold for £3.3 million (premium), clearing the high estimate of £2.2 million and marking the second-highest auction price for Riley to date.
The next marquee sale cycles in October are again traditionally held in London and then Paris, adding to the pressure for the houses to swiftly gather more material. Brexit and Covid restrictions seem to have weakened Europe’s auction positioning but perhaps some of the stronger consignments have been pushed towards the ‘Frieze slot’, typically the most major calendar moment for the London art scene. The results of October will help inform how some of the trends seen during these sales will develop. What is in no doubt, however, is the strength of the Asian auction market. Compared to a 43% drop in New York and 38% decline in London, Asia’s sales fell just 3% in 2020. With almost $900 million worth of art sold to date, 2021 is poised to be another record for the region.
Image 1: Image courtesy Sotheby’s; Image 2: Image courtesy Sotheby’s; Image 3: Image courtesy Christie’s; Image 4: Image courtesy Sotheby’s; Image 5: Image courtesy Christie’s; Image 6: Image courtesy Phillips; Image 7: Image courtesy Phillips; Image 8: Image courtesy Phillips; Image 9: Image courtesy Christie’s
FURTHER READING
- What Will Collectors Buy in 2022?
- Ten Reasons “Going in Alone” at Auction is a Mistake
- Protect Your Investments While Divesting Tangible Assets
The Art of Leverage: Art & Jewelry as Powerful Financial Tools
TUESDAY, JUNE 29, 2021 – 10AM PST / 1PM EST
Have you considered art-secured lending for your High-Net-Worth individual and Ultra High-Net-Worth clients?
Art and jewelry loans allow collectors to realize liquidity without having to make unfavorable sales to satisfy short-term cash-flow requirements, or simply extract valuable investment capital. Through this form of financing, collections can be expanded, and investment returns can be optimized.
Please join the Fine Art Group for an informative discussion on current lending opportunities with art and jewelry.
TOPICS DISCUSSED
- What is Art Finance & what are the different types of Art Finance products?
- What makes suitable collateral?
- Key commercial terms & the execution process
- Borrowing rationales & borrower characteristics
- Key trends & predictions
PANELISTS
About The Fine Art Group
Launched in 2000, The Fine Art Group is a global leader in art and finance with deep market connectivity and a unique position within the art ecosystem. With a proven track record, private collectors and member of the art trade can benefit from in-house legal and finance teams, backed up by a highly experienced group of art and logistics experts, ensuring every art finance transaction is completed efficiently and within deadline. Our wider understanding of the art market and experience of working with many of the world’s most important collectors, advisors, dealers, and gallerists means we are in a position to deliver client service and a capital solution which sets us apart.
Why Work With Us
- 20-year track record in the art market
- Non-circumvent agreements provided to Art Advisors
- Unrivalled speed of execution – loans typically funded within 3 – 4 weeks
- In-house collateral appraisals in consultation with the Art Advisor ensure absolute confidentiality, far removed from auction houses and the wider market
- Transparent client interactions – always working alongside the Art Advisor
- Front to back execution process managed in-house with white-glove client service
- Highly competitive interest rates
- No borrower financial disclosure or credit underwriting
- Up to 50% Loan to Value
THE FINE ART GROUP ACQUIRES PALL MALL ART ADVISORS
FURTHER READING
- High-Profile Client Collections & Sudden Wealth Syndrome
- Helping the High-Profile Client Buy & Sell Smart
- Helping the High-Profile Client Buy Luxury Assets
“Since the pandemic, we have seen increased demand as people want to retain more personal liquidity. It makes sense to offer the service to buyers at auction as well as on the private market.” -Freya Stewart
Our CEO of Art Finance Freya Stewart speaks to Melanie Gerlis at the Financial Times to discuss purchase financing and its role in the art market. Freya highlights the benefits of purchase financing, particularly in regards to the upcoming London auctions.
To read the article in full and learn more about the qualifying works for financing from The Fine Art Group please click here.
Our CEO and Founder Philip Hoffman appeared on this week’s episode of the ArtTactic Podcast. Philip discusses his decision to acquire Pall Mall Art Advisors during a trend of consolidation within the broader art market and uncertainty of the pandemic. He also shares his views on the current landscape of the art market, from what collectors are looking for and the importance of appraisals to a discussion on the impact of Covid-19.
To listen to the podcast in full and learn more about where valuable opportunities in the art market lie, please click here.
I am delighted to announce that Pall Mall Art Advisors has been acquired by the London based company, The Fine Art Group. Over its 20-year history, The Fine Art Group, founded by Philip Hoffman, has established itself as a powerful presence in the global art market, evolving from its origin as The Fine Art Fund into a comprehensive art services group spanning art advisory, art secured lending, art agency, art investment and valuations. The Fine Art Group serves the upper end of the art market and offers unrivaled in-house expertise in fine art and jewelry.
This merger cements our position as the market leading independent art services group for every stage of the art collecting cycle. The sale makes perfect sense as we continue to focus on expanding our services and global footprint. Both companies share the same guiding principles of providing transparent and independent white glove service to exceed our clients’ expectations. Like Pall Mall Art Advisors, The Fine Art Group has a strong commitment to developing long-standing client relationships and meeting their evolving needs in a changing market.
We plan to consolidate our brand to be represented under The Fine Art Group name, which will be rolled out over the next few months. My colleagues and I look forward to connecting with you soon to discuss in greater detail this exciting news and the extension of specialty services it offers you.
Anita Heriot
President, the Americas, The Fine Art Group
Read more about the merger on Artnet.com.
A welcome return to the regular auction schedule saw Christie’s and Sotheby’s execute five major evening sales across three nights totalling $1.29 billion, with Phillips opting instead to hold their New York sales in June at their new headquarters. Despite Christie’s merging their Post-War & Contemporary and Impressionist departments, previously holding just one evening sale, the auction house held two 21st and 20th Century evening sales, proving that the sale categories continue to be malleable depending on the material the houses bring in. Despite heavy investment in their live streaming technologies from both sides, Sotheby’s format still triumphs in terms of streamlining global bids from multiple desks. Most refreshing, however, was room bidding on several lots during the Sotheby’s sale, fielded by auxiliary auctioneer Quig Bruning. Diego Rivera’s Retrato de Columba Dominguez de Fernandez (1950) even sold to a woman in the room for $7.4 million (premium) and marking a promising step forward for the next round of sales.
Despite Christie’s achieving an overall higher turnover with $691.6 million (premium) versus $597 million (premium) for Sotheby’s, in terms of material it felt as if Sotheby’s had the lead for the week. This was largely due to the stand alone Marion Collection sale which achieved $157.2 million (premium). Despite totalling towards the lower end of the presale estimate due to four unsold works, the sale saw new auction records achieved for Kenneth Noland, Larry Rivers and Richard Diebenkorn and impressive bidding on the major Warhol, Elvis 2 Times (1963), whose market has been somewhat subdued in recent years. Estimated at $20 – 30 million, the double portrait sold for $32 million hammer ($37 million premium). Christie’s also had comparatively healthy Warhol results in their 20th Century sale later in the week, with both lots reaching around their high estimates.
On the completely opposite end of the art historical timeline, following the recent headline grabbing Beeple price, Christie’s unsurprisingly opted to include an NFT artwork in their 21st Century evening sale which no doubt boosted their bottom line as 9 Cryptopunks sold for $16.9 million (premium), estimated at $7 – 9 million. A few weeks before Phillips and Sotheby’s had both followed suit, holding their own standalone NFT auctions selling for several million dollars. While their value is currently the subject of much speculation, with the new evening sale status NFTs seem to be gathering staying power, at least for the short term.
In the spirit of technological shifts, the consignor and Sotheby’s opted to allow their Banksy Flower Thrower painting to be paid for in cryptocurrency which undoubtedly boosted the extraordinary result hammering at $11 million ($12.9 million with premium) to a west coast collector, against an estimate of $3-5 million. Notably Sotheby’s required their buyer’s premium to be paid in US dollars.
Strength of the Asian market continued and in terms of bidding roughly a third of lots across all the sales saw bidding from Asia. Christie’s reported that the Asia-Pacific area represented 25% of buyers from their 21st Evening sale and 20% in their 20th Century evening sale. Key lots by George Condo, Leonor Fini, Picasso’s Femme assise en costume vert and a Monet still life, among others, were all sold to phone bidders from Sotheby’s and Christie’s Hong Kong desks.
The major turnover generator of the week for both houses was Jean-Michel Basquiat. Christie’s lot, In this Case (1983) sold by Valentino co-founder Giancarlo Giammetti, went beyond its unpublished pre-sale estimate of around $50 million to a New York phone bidder for $81 million hammer ($93.1m with premium). Sotheby’s likely expected their top lot Versus Medici (1982) to do better but it sold to Lisa Dennison’s client Steve Wynn for $44 million hammer ($50.8 million with premium).
The result for Picasso’s Femme assise près d’une fenêtre (Marie-Thérèse) (1932) also showed the continued strength in long term value for the artist. Previously selling for $44.8 million in 2013, this time it went to Vanesso Fusco’s client on the phone for $90 million hammer ($103.4 million premium), the only lot of the week to sell in excess of $100 million including fees.
Despite some healthy bidding for Basquiat, Picasso and the major Monet waterlilies at Sotheby’s, these solid results were for deservedly A-grade material. Whereas works by other auction stalwarts including Gerhard Richter, Christopher Wool and Cy Twombly, among others, primarily sold on one or two bids. This is both a reflection of the continued selectiveness of the market as well as a shift in taste to the new generation of art stars, albeit at lower price points, where lots saw the most competitive bidding. Five artists under the age of forty-five set new auction records, notably Nina Chanel Abney ($990,000 premium), Lynette Yiadom-Boakye ($1.95 million premium) and Salman Toor ($867,000 premium) to name a few. Another noteworthy price from the week included a spectacular and deserved new auction record for Robert Colescott’s George Washington Carver Crossing the Delaware: Page from an American History Textbook (1975), selling for $15.3 million (premium) above the $12 million high estimate. The result was over sixteen times higher than the previous record of $912,500. The work sold to the Lucas Museum of Narrative Art in Los Angeles.
Overall, the results proved a healthy, recuperative global art market, following the past twelve turbulent months. Phillip’s delay to June may have assisted in slightly curbing supply but the successive slew of auction records and excellent sell through rates speak for themselves. The auction houses continue to show excellent adaptability to help ensure this, whether it be last minute lowering of reserves, withdrawals or the securing of guarantees. With 78% of works guaranteed by value in both Christie’s evening sales and 48% and 57% respectively in Sotheby’s Contemporary and Impressionist & Modern sales, these remain essential tools for the sustained stability of the auction market.
Image 1: Image courtesy Sotheby’s; Image 2: Image courtesy Sotheby’s; Image 3: Image courtesy Christie’s; Image 4: Image courtesy Sotheby’s; Image 5: Image courtesy Sotheby’s; Image 6: Image courtesy Christie’s; Image 7: Image courtesy Christie’s; Image 8: Image courtesy Sotheby’s
FURTHER READING
- Morgan Long Speaks with Barron’s About Guaranteed Works at Spring 2023 Auctions
- Watch The Educated Eye: How to Navigate a Multi-Category Collection at Auction
- May 2023 Auction Season: Our Team’s Top Picks & Insights
“We all miss the sense of occasion that comes with going to an auction,” Mr. Jennings said. “I’m really anxious to get into one.”
For the first time since the start of the pandemic, Sotheby’s invited a select few collectors and dealers to attend their live streamed auctions in real life, and finally bid in person rather than online or over the phone.
Managing Director Guy Jennings and Senior Director Morgan Long were recently asked to comment on this, speaking to The Wall Street Journal last week about their own viewing habits and how different it is to participate in the auctions from the comfort of their own homes.
To read the article in full, please click here.
CEO of Art Finance and Group General Counsel Freya Stewart was recently invited to speak at the STEP Bermuda Webinar Series: Art Finance.
In the session, Freya demystified Art Finance, including discussion on: what types of collectors use Art Finance and for what purposes; what the key commercial terms are; and the eligibility and execution process. Freya specifically touched on how and why Bermuda based clients, and Trustees globally, use The Fine Art Group’s Art Finance services, together with relevant case studies from The Fine Art Group’s loan portfolio. Finally, Freya offered insights into current issues in the world of Art Finance and the year ahead.