Art Services by The Fine Art Group

ART SERVICES BY THE FINE ART GROUP

A 360-DEGREE APPROACH IN THE ART MARKET

ABOUT THE FINE ART GROUP

OUR ADDED VALUE

Global & Independent

With our in-house Art, Legal and Finance teams we can efficiently and discreetly serve as the best independent advisor to guide our clients in an often-opaque art market.

Expertise

Throughout our 20 years in the market, The Fine Art Group has gained deep experience and unmatched reputation in the art ecosystem, working with some of the largest fine art collections in the world.

360-degree Approach

Our comprehensive and pragmatic approach to art management includes every service a collector requires in the market. From valuations, risk management, acquisition, monetization, philanthropic planning, and estate planning, providing exceptional market insight for both a

SENIOR GLOBAL TEAM

TAD SMITH JOINS THE FINE ART GROUP MANAGEMENT TEAM

Philip Hoffman FOUNDER & CEO

Philip founded The Fine Art Group in 2001 after spending 12 years at Christie’s, most recently as a Director and International Management Board Member

Anita founded Pall Mall Art Advisors in 2012 building one of the biggest appraisal companies in the US. The Fine Art Group acquired the company in 2021

International Chairman of Sotheby’s Worldwide and Sotheby’s Asia until 2022, Patti has had a leading role in the development of some of the most significant collections in Asia

Co-founder of Art Agency Partners, that was acquired by Sotheby’s in 2016 when he became Co-Chairman of Sotheby’s Fine Arts Division until founding Schwartzman&

Tad Smith joined The Fine Art Group in September 2023 as Chairman of the Supervisory Board. Tad will help The Fine Art Group, and their partners Patti Wong & Associates and Schwartzman&, to expand their world class art advisory business.

Tad Smith BOARD MEMBER

President and CEO of Sotheby’s, the publicly listed global auction house that he digitized and sold for $3.7b in 2019. He is CEO of TheKey and a Board member of many firms

Tad has led the transformation of numerous companies by prioritizing the client experience. His success in creating significant value is built on deep expertise in operations, digital reinvention, growth escalation, and a relentless focus on service. Tad was the former CEO of Sotheby's from 2015 to 2019, where he notably oversaw the sale of the auction house for $3.7 billion. His tenure at Sotheby's was defined by a series of lucrative acquisitions and adaptations, as well as doubling the profits Sotheby's made from private sales. Prior to Sotheby's, Tad Smith was President and CEO of The Madison Square Garden Company, a publicly traded entertainment company.

Todd Ruppert BOARD MEMBER

Founder and CEO of Ruppert International and former CEO and president of T. Rowe Price Global Investment Services and co-president of T. Rowe Price International

Jan Prasens CHAIRMAN

In addition to his role at The Fine Art Group, Tad is a Partner of 1 RoundTable Partners/10T Holdings, leading growth equity firms that invest in rapidly growing companies that deploy blockchain technologies to revolutionize the way businesses and consumers work. Since 1999, Tad has been an adjunct professor at the Stern School of Business at New York University, where he teaches a popular course on strategy for technology, media and entertainment companies.

Jan spent over 20 years in Sotheby’s where he turned Sotheby’s Financial Services into the worlds largest art-backed lender. Jan joined The Group in 2021

Morgan Long MANAGING DIRECTOR, HEAD OF ADVISORY

Morgan joined The Group 21 years ago and she has been Head of Art Investment since 2005. Leading our in-house Art Team, she has overseen all fund and client purchases

SENIOR GLOBAL TEAM

PATTI WONG & ASSOCIATES

The Fine Art Group operates in Asia through a joint venture with Patti Wong & Associates (PW&A), lead by Patti Wong and Daryl Wickstrom. PW&A is the leading Hong Kong-based art advisory firm, with a focus on buying high-value artworks on behalf of the most significant collectors in the region.

Philip Hoffman FOUNDER & CEO

Philip founded The Fine Art Group in 2001 after spending 12 years at Christie’s, most recently as a Director and International Management Board Member

PW&A services operate across all the major luxury markets including Impressionist and Modern Art, Post-War and Contemporary Art, Chinese Works of Art, Chinese Paintings, Fine Jewelry, Watches, and Wine.

Anita Heriot PRESIDENT, AMERICAS

Anita founded Pall Mall Art Advisors in 2012 building one of the biggest appraisal companies in the US. The Fine Art Group acquired the company in 2021

According to the UBS and Art Basel Art Market 2022 Report, Asia is now the largest auction market and second only to the US as the largest art market overall. This strategic partnership affords our clients access to the most important bidders and buyers in the Asia market, as well as benefiting from one of the world’s most important auction and private sale tacticians in Patti Wong.

Patti Wong PARTNER, PATTI WONG & ASSOCIATES

International Chairman of Sotheby’s Worldwide and Sotheby’s Asia until 2022, Patti has had a leading role in the development of some of the most significant collections in Asia

President and CEO of Sotheby’s, the publicly listed global auction house that he digitized

BOARD MEMBER

Founder and CEO of Ruppert International and former CEO and president of T. Rowe Price

Jan spent over 20 years in Sotheby’s where he turned Sotheby’s Financial Services into the

Morgan Long MANAGING DIRECTOR, HEAD OF ADVISORY

Morgan joined The Group 21 years ago and she has been Head of Art Investment since 2005. Leading our in-house Art Team, she has overseen all fund and client purchases

SENIOR GLOBAL TEAM

PATTI WONG & ASSOCIATES ACHIEVES EUROPEAN AUCTION RECORD

Philip Hoffman

FOUNDER & CEO

Philip founded The Fine Art Group in 2001 after spending 12 years at Christie’s, most

Anita founded Pall Mall Art Advisors in 2012 building one of the biggest appraisal

International Chairman of Sotheby’s Worldwide and Sotheby’s Asia until 2022, Patti has had a leading role in the development of some of the most significant collections in Asia

Co-founder of Art Agency Partners, that was acquired by Sotheby’s in 2016 when he became Co-Chairman of Sotheby’s Fine Arts Division until founding Schwartzman&

President and CEO of Sotheby’s, the publicly listed global auction house that he digitized and sold for $3.7b in 2019. He is CEO of TheKey and a Board member of many firms

BOARD MEMBER

Founder and CEO of Ruppert International and former CEO and president of T. Rowe Price

Jan spent over 20 years in Sotheby’s where he turned Sotheby’s Financial Services into the

MANAGING DIRECTOR, HEAD OF ADVISORY

Morgan joined The Group 21 years ago and she has been Head of Art Investment since 2005. Leading our in-house Art Team, she has overseen all fund and client purchases

SENIOR GLOBAL TEAM

SCHWARTZMAN&

Philip Hoffman FOUNDER & CEO

The Fine Art Group partnered with Schwartzman& to collaborate on key client projects. Based in New York, Schwartzman& is a 20-person firm offering tailor-made services to a full spectrum of private and public individuals and organizations .

Philip founded The Fine Art Group in 2001 after spending 12 years at Christie’s, most recently as a Director and International Management Board Member

Over three decades, Allan and Philip have distinguished themselves and built successful businesses serving clients across all aspects of the art world. By leveraging our complementary skills and resources, The Fine Art Group and Schwartzman& are uniquely positioned to provide our sales advisory clients with the best and most appropriate sales strategies, access to significant American collectors, and other creative exhibition and marketing plans.

Anita Heriot PRESIDENT, AMERICAS

Anita founded Pall Mall Art Advisors in 2012 building one of the biggest appraisal companies in the US. The Fine Art Group acquired the company in 2021

Specific areas of collaboration include services ranging from bespoke sales advisory mandates, complex valuations, and collection management to investment opportunities and philanthropic giving, amongst others.

Patti Wong PARTNER, PATTI WONG & ASSOCIATES

International Chairman of Sotheby’s Worldwide and Sotheby’s Asia until 2022, Patti has had a leading role in the development of some of the most significant collections in Asia

Jan spent over 20 years in Sotheby’s where he turned Sotheby’s Financial Services into the

Morgan Long MANAGING DIRECTOR, HEAD OF ADVISORY

Morgan joined The Group 21 years ago and she has been Head of Art Investment since 2005. Leading our in-house Art Team, she has overseen all fund and client purchases

SENIOR GLOBAL TEAM

SENIOR GLOBAL TEAM

Philip Hoffman FOUNDER & CEO

Philip Hoffman FOUNDER & CEO

Philip founded The Fine Art Group in 2001 after spending 12 years at Christie’s, most recently as a Director and International Management Board Member.

Philip founded The Fine Art Group in 2001 after spending 12 years at Christie’s, most recently as a Director and International Management Board Member

Patti Wong CHAIRWOMAN

International Chairman of Sotheby’s Worldwide and Sotheby’s Asia until 2022, Patti has had a leading role in the development of some of the most significant collections in Asia.

Tad Smith

CHAIRMAN OF THE BOARD

Anita Heriot PRESIDENT, AMERICAS

Tad was the CEO of Sotheby's from 2015 - 2019, and oversaw the sale of the company to it's current owner for $3.7 billion. He is currently CEO of the non-proft The Key.

Anita founded Pall Mall Art Advisors in 2012 building one of the biggest appraisal companies in the US. The Fine Art Group acquired the company in 2021

Anita Heriot PRESIDENT, AMERICAS

THE FINE ART GROUP IN THE PRESS

FEBRUARY 20, 2023

THE FINE ART GROUP & PARTNERS NAMED BY FINANCIAL TIMES AS TOP ART ADVISOR

To read the full article, click here

GLOBAL CLIENTS

GLOBAL CLIENTS

The below is a selection of clients we have worked with and for over the last 5 years.

COMBINING TRANSPARENT ADVICE WITH PROFOUND MARKET INTELLIGENCE

Offering expert guidance, our dedicated Art Advisory Team offers strategic insight with transparent advice to guide our clients seamlessly through the market. Whether buying for passion, investment, or both, we support each client to realize their individual aspirations.

Our expertise enables us to protect our clients’ interests and assets by ensuring they get the best value for money on every transaction. Providing expert service and attention to detail at every step, our dedicated advice guides clients through the collection building process. We work solely on our clients’ behalf, always acting independently from galleries, auction houses, and dealers.

Advisory Deliverables

– Access to sought-after primary market artworks at advantageous prices: Our team have gallery relationships going back 20 plus years and can leverage these on your behalf. All discounts are passed to the client.

– Extensive sourcing and access to works held off market: With ten specialists covering the Impressionist, Modern, and Contemporary sectors you have best in class deal opportunities at your disposal.

– Our relationship with our retained clients is close and fluid guaranteeing complete availability over the phone or by email for fast feedback on deals and opportunities.

Due Diligence & Price Vetting

– We will conduct a vetting process for every piece offered externally to the client in primary market, secondary market or at auction.

– Full due diligence reports and market analytics on all potential acquisitions including but not limited to provenance, condition, artists’ market, comparable works, tax implications, logistics.

– In house expert condition checks and travel to viewings.

– Annual valuations and in-person spot checks of collection.

EDUCATION & EXPERIENCES

Part of our commitment to our clients is providing in-depth educational programme tailored to their own interests and requirements.

The art market can be highly academic and challenging to navigate. Our goal is to help our clients to become more knowledgeable and cognisant of the market's nuances and thus, increasingly more involved.

Our in-house team of art specialists provide our clients with a comprehensive and detailed educational program to train their eye as well as keep them up to date with the state of the art market.

Art Education Deliverables

– Deep dive artist analysis with an exhaustive overview of their career development and market.

– In-depth art market insight, updates and forecasts prior to all major global auction seasons in London, Paris, New York, and Hong Kong - We send individual documents on potential purchase highlights to consider at each fair.

– Tours and in depth art market insight, for all international art fairs such as Art Basel (Basel, Miami, Paris, Hong Kong), Frieze (New York, London, Los Angeles), TEFAF (Maastricht, New York), The Armory Show in New York and many others - We send individual documents on potential purchase highlights to consider at each auction sale.

– Museum and gallery tours in London, New York, Madrid, and other cities.

– Annual Global Art Market Report where we present an overview of the auction, gallery and NFT markets as well as an outlook of predictions for the upcoming year.

Access to our ongoing series of Webinars designed to inform collectors on a wider range of

ADVISORY CASE STUDIES

Wasssily Kandinsky

Auction Purchase, 2022

René Magritte

Auction Purchase, 2022

Jean-Michel Basquiat

Private Purchase, 2012

Jonas Wood

Auction Purchase, 2021

Francis Bacon

Private Purchase, 2012

Peter Doig

Private Purchase, 2015

Gerhard Richter

Auction Purchase, 2022

John Singer Sargent

Private Purchase, 2022

$34m

$7m

$23m

$10m

$7m

$10m

$7m

$20m

STUDY

CARNEGIE LIBRARY OF PITTSBURGH CASE

The Fine Art Group’s provided a bespoke advisory and collection management service for the Carnegie Library of Pittsburgh.

The client wanted to understand the value of the diverse collections of Books and Mnauscripts they owned. After an exhaustive appraisal, The Fine Art Group was able to offer further insight on the collection as well as stablish a comprehensive database for the client to properly manage each item and sub-collection. We suggested 10 potential sales in order to refine the collection and maximise returns for future collection building. The Fine Art Group negotiated all details related to an auction sale with Sotheby's New York: financial terms, sale estimates, marketing strategy, etc. The 10 items succesfully sold for $1,432,620 against an auction low estimate of $950,000.

With our oversight, the client is now using a database to view and edit over 13,000 objects in real time while keeping the value of the collection securely hidden.

13,000 Objects Under Management

$1,432,620 Sold vs. $950,000 Low Estimate

Continued Advisory and Consulting Services

Project Deliverables

– Comprehensive Valuation and Collection Management advice

– Inventory Organization and Bespoke Database Creation

– Assessment of Market Conditions

– Keep & Sell Strategy for the diverse collections

– Sale Strategy and Management

– Advisory Services related to Risk Assessment and Conservation

CHAPTER THREE

SALE AGENCY SERVICES

ENSURING HIGHEST REVENUE

An agent is solely and exclusively engaged to maximize the financial return and impact of an artwork or collection on the market.

Due to our expertise Agency team and marketing

The client remains commercial negotiation, tours, events, Agency Deliverables

– Global & Independent. With our in-house Art, Legal, and Finance teams we can efficiently and discreetly serve as the best independent agent to guide our clients in the often-opaque art market.

– First In, Last Out. Through our in-house services, we manage every detail of the sales process and ensure dedicated and constant contact throughout.

– Creative Solutions. We’ve worked with a wide array of magnificent collections and artworks, and know how important marketing, exhibition, and staging are when bringing special art pieces to market.

– We Excel in Complexity. We work across categories, locations, and sales channels to ensure the property is offered at the optimal price and platform.

– Dynamic Planning. Whether it be with auction houses, major dealers, or directly with the world’s most prominent collectors on private treaty sales, we know that our considered strategy will reflect the most dynamic and successful approach.

– Financial Terms. We have secured hundreds of millions of dollars of guarantees on behalf of our clients and investment funds and remain uniquely positioned to guide our clients and consignments through complex consignment plans and enhanced financial terms.

THE AGENCY PROCESS

Phase 1

VALUATION OF COLLECTION & DETAILED STRATEGY

Once we have had the opportunity to review the artworks a client is thinking of selling, we then present a comprehensive menu of strategies for the property and explain how they differ in terms of timing, profitability, and exposure.

Phase 2

PRE-SALE POSITIONING & MARKETING

For any Agency process with The Fine Art Group, our services constantly evolve around the client and the demands of the market. Our long track-record and independence in the art market mean that our strategies and tactics will look at the depth and breadth of the market, and the various sales channels and platforms that can be utilised.

Phase 3

SALES MANAGEMENT

We know the key players in this market and, in turn, our sales strategy will look at creative, innovative, and profitable methods including all the major auction houses, private dealers, and private clients. Our unique position allows us to negotiate and manage all agreed sales, including maximizing profits through best-in-market consignment terms and broad market reach.

Phase 4

POST-SALE MANAGEMENT

Crucially, our role as Agent is to serve as both an advocate for the artworks on the market, as well as a continual advisor to all key stakeholders throughout the process. With Philip Hoffman and our Senior Commercial Team overseeing each Agency client, we can tap into strategic market resources and secure the most favorable financial terms for our clients.

SELLING STRATEGY: DEFINITIONS &

METHODOLOGIES

HOUSE PRIVATE SALE

The Fine Art Group negotiates on behalf of the client:

– An estimate: a price range indicative of the final price expectation.

– A reserve: a minimum price that the work may sell for.

The Fine Art Group negotiates on behalf of the client: AUCTION

– A guarantee (optional): the minimum price that an auction house or a third party has agreed to pay for the work. The party that guarantees the work usually obtains a percentage of the upside if the final price exceeds the guarantee. Guaranteed transaction with upside.

– Appropriate venue and sale placement.

– Terms: seller’s commission (paid by the consignor to the auction house, deducted from the hammer price).

– Marketing and any additional promotion and publicity.

– Opportunities to highlight the legacy and history of the collector.

– Net-to-seller price: the agreed upon sum to be achieved for the owner. Fixed with limited upside.

– Timeframe for offering on the private market: typically the length of time varies from 6 months to 2 years. No guaranteed transaction.

– Scope of potential buyers to be approached: limit number of collectors in order not to over-expose the work.

– Logistics consideration: gallery or fine art storage.

– Exhibition and viewing conditions.

– Geographic reach for the work.

– Opportunities to highlight the legacy and history of the collector.

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SALES AGENCY CASE STUDIES

Vincent van Gogh $62m Auction Sale, 2014

David Hockney $21m Auction Guarantee, 2022

Peter Doig $22m Private Sale, 2015

Pierre Bonard $5m Auction Sale, 2021

Francis Bacon $45m Auction Sale, 2015

"Sky Blue" Diamond $18m Auction Sale, 2016

Helen Frankenthaler $7m Private Sale, 2022

Francois-Xavier Lalanne $3m Private Sale, 2020

MAHARAJAS & MUGHAL MAGNIFICENCE

The Fine Art Group advised on Maharajas & Mughal Magnificence, a landmark auction of 400 pieces of jewelry, art, and gemstones, that took place on 19th June 2019 at Christie’s, New York. As part of our Agency service, The Fine Art Group managed the sales strategy on behalf of the seller; from negotiating terms with the auction house and driving the marketing strategy, to promoting the collection to our own private network of collectors.

The auction realized $110 million, a recordbreaking result for any auction of Indian art and jeweled objects.

The auction consisted of almost 400 lots, spanning 500 years of India’s rich culture, from the glory of the Mughal dynasty and the famous Golconda mines, to India’s influence on Cartier and other contemporary jewelers. Over 50,000 people attended the global exhibition tour to Shanghai, Geneva, Hong Kong, and London, finally culminating in New York for a marathon 12 1/2 hour auction.

The entire sales process, from conception to completion, took place over an 18 month period. Due to the success of the endeavor we have executed additional sales offerings for the client.

$109,271,875 Realised | 92% Sold by value | 93% Sold by lot

Project Deliverables

– Assessment of market conditions to determine the appropriate sales approach

– Negotiation of “most favoured nation” sales terms with the auction house

– Pre- and post-sale logistics and management

– Enhanced marketing strategy

– Press and social media coverage

– Publicizing the collection to The Fine Art Group’s private network of collectors

– Exclusive views and tours of the highlights at Christie’s in London, Geneva, New York, Shanghai, and Hong Kong

EUROPEAN MODERN ART COLLECTION

A distinguished European family approached The Fine Art Group in Spring 2022 for a consultation on their Modern art collection. The client wanted to understand the overall value of the collection and be advised on a selling strategy on some of the artworks.

After an in-person valuation, our Art team prepared a Keep & Sell strategy that would ensure proceeds maximization. We presented a multi-channel plan where the pieces to be sold would be distributed between three auction houses and four locations looking for the best outcome for each artwork. The client appreciated the comprehensive and innovative strategy as well as the enhanced terms we negotiated for them due to our established relationships with each auction house.

With our in-house Art, Legal, and Finance teams we efficiently and discreetly served as the best independent advisor to guide our client in the often opaque art market.

$4,454,000 Total Realised vs. $1,927,000 Low Estimate 3 Auction Houses & 4 Locations

Project Deliverables

– Comprehensive Valuation and Collection Management advice

– Keep & Sell Strategy for the full art collection

– Assessment of market conditions and suggestions and reasoning on what to sell

– Development of a multi-channel and multi-location sale plan

– Sales coordination with three different auction houses in New York, London, Paris, and Brussels

– Strategically placing each artist and artwork in the best location and auction season

– Negotiation of enhanced selling terms for the client

– Pre- and post-sale logistics and management

THE WALID JUFFALI COLLECTION

The Juffali family approached The Fine Art Group to advise on the consolidation of their art collection. Our Art Team provided a full valuation of the collection across the family’s three international homes and helped the family identify the pieces best suited to sell and those the family wished to keep for monetary and personal value.

We recommended that the optimal sales strategy was a single owner auction managed by The Fine Art Group through Bonhams at the family’s property, Bishopsgate House.G

A selection of Modern, Impressionist, and Contemporary artworks were placed in Bonhams evening sales to optimise value.

The sales took place in March 2018 achieving a 100% sold rate and realizing a total of $10.17 million, 40% over the high estimate.

The collection comprised 450 lots overall, with 414 lots offered in the Bishopsgate House Sale.

Sales Agency Deliverables

– Valuation and advice on strategy for art collection

– Assessment of optimal sales strategy

– Pre- and post-sale logistics and management

– Tailored marketing strategy

– Enhanced coverage in the press and social media

– Tours and events in Paris, New York, and London

– Exclusive reception, dinner, and private view at Bishopsgate House

$10,170,000 Realised | 100% Sold by value | 100% Sold by lot

ART FINANCE SERVICES

RELEASING VALUABLE CAPITAL FROM ART AND JEWELRY COLLECTIONS

We provide asset-secured loans for collectors, the art trade and owners of high-quality works of art and jewelry. Our flexible, bespoke financing solutions are designed to meet each client’s individual requirements, with a unique combination of renowned in-house art, finance, legal and logistics experts ensuring an unrivaled speed of loan execution.

Commercial Terms

– Tailor-made financing solutions secured against fine art and jewelry

– Loans from US$1M to US$200M

– Up to 2-year initial maturity, with option to extend – 50% Loan-to-Value

– Competitive interest rates

– Fast and confidential in-house collateral appraisal and loan execution process: loan funding within 1 week of collateral appraisal

– No borrower net worth or credit requirements

– Term loans, consignment/advance loans and purchase financing

– Loans provided to borrowers globally, including the USA, Europe and Asia

Eligible Collateral

– High-quality fine art and jewelry with secondary market (auction market)

– Major auction categories – Impressionist, Modern, Post-War and Contemporary

– Other collectibles not accepted (no wine, watches, automobiles, etc.)

LOAN EXECUTION PROCESS

Stage 1

INITIAL REVIEW AND RESPONSE

– Send details of the property intended as collateral

– Our in-house Art Team will assess the suitability and value of the collection, and give an answer within 48 hours

Stage 2

DOCUMENTATION

– If the collateral is deemed suitable, we will issue a term sheet to the borrower

– If the term sheet is agreed, further information and documentation will be requested

– Loan documentation is then agreed

Stage 3

LOGISTICS AND FUNDING

Our in-house operations team will arrange for all necessary

ART FINANCE CASE STUDIES:

Investment Capital Release from Impressionist and Post-war Collection

– Provided US$25M loan to London and Monaco-based real estate investor

– Collateral included artworks by Picasso, Monet, Bacon and Warhol

– Artworks stored in Zurich and London, and exhibited at a major international institution

– All collateral appraisals provided in-house, entirely confidentially

Fast Liquidity to Swiss Trustee

Purchase Financing to European Collector

– Purchase financing to facilitate an important acquisition opportunity

– Provided a loan of US$7M, being 50% of the purchase price, to acquire a painting by Jean-Michel Basquiat

– Funding provided to the seller within two weeks of client request

– Provided US$3M to a Swiss trustee requiring fast liquidity solution to pay trust and legal expenses

– Collateral included a Gerhard Richter painting and other artworks

– The trustees preferred to raise capital by utilizing an art-secured loan, rather than selling part of the collection

– Funding sent to the client in 10 days

Purchase Financing to a Texas-based Collector

– 2-year loan of US$2M to provide additional personal liquidity for divorce settlement

– Collateral included an important blue diamond, an Art Deco sapphire ring, and an iconic diamond necklace

– Flexible terms allowed for collateral swaps as required

INVESTMENT SERVICES

ART INVESTMENT

Beyond emotional and intellectual value, art has proven to be a reliable tangible asset that can appreciate over time if its bought and managed with expert advice.

Individual collectors have a range of motivations for purchasing art, with most having more than one driver that lead them to build their collections and interact with the market in a particular way.

The 2021 Art Basel and UBS Global Art Market Report revealed that most collectors (86% overall) have an organized and strategic plan when it comes to buying art. It also showed that younger generations are more likely to follow a tactical purchase plan as they recognize art as they would any other financial asset. Using art as a method to diversify their wealth portfolio ranked the highest of the financial motivations in the report.

This demonstrates that despite collectors identifying themselves as buying art for aesthetic, social, and emotional reasons, many are in fact driven by the potential financial return art can offer. It is vital to bear in mind that this financial return is possible if art is bought, managed, and sold with expert guidance.

The Fine Art Group is an independent, global team of art advisors and art finance experts that can offer personalized Art Investment strategies that meet the clients' own objectives and requirements when it comes to budget, time frame, and aesthetic taste.

Art Investment Rationale

– Portfolio Diversification

– Inflationary Hedge

– Repository of Value

– Capital Growth

BESPOKE INVESTMENT SERVICES

The Fine Art Group has transacted and advised on artworks with value of approximately $1.4 billion with investors in over 30 countries.

We are the trusted art investment firm of some of the world's most prestigious collectors as well as renowned family offices, international banks and sophisticated investors who recognize the benefits of investing in art.

We offer personalised art investment services depending on our client's interests. Our in-house team of art and finance specialists create a bespoke strategy for each collector or investor in order to fulfil their specific objectives and requirements.

Private Art Accounts

We offer Private Art Investment Accounts building portfolios ranging from $1 million – $100 million+ by investing in unique quality artworks. The Group’s inhouse art team works directly with the client to build a personal art collection with the primary goal of generating a return aligned with the client’s risk appetite and investment goals.

Co-Investment

Our distinct market position and established network, gives our clients access to exclusive investment deals. Investing alongside art market professionals or ourselves, the sharing of risk, and joint alignment of interests maximizes upside potential.

Pooled Investment

We structure products that pool investors’ capital utilizing different strategies to capitalize on our comprehensive art market knowledge while diversifying risk.

Other Art Investment Opportunities

From underwriting auction sales with guarantees to acquiring businesses with significant art portfolios, diverse investment opportunities can be found across the art ecosystem. The Fine Art Group’s independent insight and market knowledge assists our clients in making the most advantageous decisions for value generation.

RISK MITIGATION: DUE DILIGENCE

AND UNMATCHED MARKET EXPERTISE

Stringent due diligence, clear methodologies, and transparent fee structures are at the foundation of all our work.

Artwork Considerations

Authentication

Documentation

Condition Provenance

Subject Matter

Investment Considerations

Portfolio Fit

Timing

Pricing

Potential Growth

Transaction Costs

In-house Collection Management

Registrar and Logistics Services

Inventory and Cataloguing Resources

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UNIQUE SOURCING CAPABILTIES

Portfolios can be diversified across a range of art collecting categories and artists such as Impressionist, Modern, Post-War, Contemporary, and Digital Art.

STRICT DUE DILIGENCE PROCESS

EXPERIENCE & EXPERTISE

Highly experienced team of both art and finance experts with a comprehensive understanding of valuing art, deep market connectivity, and a 20-year track record of investing in art as an asset.

INSURANCE & STORAGE

SERVICE: PRIVATE ART ACCOUNTS

Private Art Accounts are client-focused art investments that provide a means of capital preservation and growth through investment in artworks.

Since the launch of The Fine Art Group in 2000, there has been a significant increase in both collectors and investors recognizing the value of art as an asset.

The growing sophistication around active management of art is creating greater demand for Art Investment services.

We offer Private Art Accounts with portfolios ranging from $1 million –$100 million+ to invest in high quality artworks.

The Fine Art Group’s in-house Art Team works directly with the client to build an art collection with the primary goal of generating a return while matching the client’s risk preferences and investment goals.

Guided by our art and finance experts the art investment collection starts to take shape and the client can decide to keep it and enjoy it or ask for our storage advice.

Always backed by in-depth research and due diligence, we are uniquely positioned to draw on our specialist’s insight and deep market connectivity to unearth art investment opportunities for our clients.

PRIVATE ART ACCOUNTS CASE STUDIES

Short-Mid Term Hold for Optimal Return

On behalf of one of our Advisory clients, the Art Team sourced an artwork through a gallery by a wellknown American artist with the view of placing it in a short-mid term hold before selling it at a higher level. Having reviewed the due diligence, the client agreed to purchase the artwork. Two years later, the artist’s works were performing well at auction, so we advised the client to sell the work. The team negotiated with the auction house and arranged a third-party guarantee.

Bought for: $675,000

Purchased Privately

Held for 2 years

Sold at: $1,600,000

Sold at Auction

Cash Profit: $925,000

IRR: 53.96%

Value Appreciation while Collecting for Passion

A client was looking to build a collection for passion purposes that would also hold value and act as an investment for future generations. Over a three-year period, our in-house Art Team guided the client through the process of building a Modern and Impressionist collection. Each purchase followed a full due diligence process, and the client was involved in all the decision making. Ten years later, the heirs asked The Fine Art Group for a Fair Market Valuation in order to divide it between siblings. The collection that once was bought for less than $2 million had a FMV of $6.3 million.

Total Purchase Price: $1,800,000

Purchased Privately

Held for 3 years

Fair Market Value: $6,300,000

Cash Profit: $4,500,000

IRR: 51.83%

APPRAISAL SERVICES

UNDERSTANDING VALUE

The appraisal of your art forms the foundation for all other services offered by The Fine Art Group. Current values enable our team to advise you on managing risk and maximizing the value of your art holdings.

We have established a strong reputation for handling unique and complicated appraisal scenarios. Our team is continuously updating the options for traditional appraisal formats and working with industry colleagues, as well as financial advisors, accountants, and attorneys, to create new appraisal reporting opportunities.

A Tailored Process

Through preliminary, in-depth consultation, we establish your goals, expectations and specific requirements to tailor our services to achieve your objectives. We provide clients with an independent, white-glove service for navigating today’s complex art and collectibles market.

Our team will work with you, your fiduciaries, advisors and beneficiaries to confidentially value a single object to the comprehensive management of the collection. As an independent global appraisal firm, our team of over 100 specialists are uniquely qualified to provide values and have inside industry knowledge from global, national and regional markets.

Possible Appraisals

– Estate Tax Appraisals

– Insurance Appraisals

– Donation Appraisals

– Planning & Equitable Distribution Appraisals

– Damage & Loss Appraisals

– Virtual Appraisals

can guarantee we have not previously been involved in the sale of these items.

– Multiple high-resolution images of each object or group of objects including multiple views and details of signature, date, maker, etc. As well as an option for including images of original documentation.

– A proprietary appraisal and collections management system that is comprehensive, secure, and user-friendly: Use of this system is provided complimentary to all The Fine Art Group clients, with support provided by our internal appraisals and collections management teams.

– Fully illustrated appraisal reports including: illustrated comparable sales, valuation narratives, charts and graphs per object, selection of objects or entire collection that can be broken down further by type, value, location, or cost basis.

YEARLY VALUATIONS

The Fine Art Group has a first-class infrastructure to ensure clients’ collections are valued properly and all information is gathered in the same inventory system.

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PHILANTHROPY SERVICES CHAPTER SEVEN

PHILANTHROPY SERVICES

The field of strategic philanthropy has become more sophisticated and complex. Many individuals are recognizing that their art and collectibles can be sources of philanthropic funding.

Using tangible assets in a strategic philanthropy initiative presents families with the chance to work collectively to create a unifying legacy.

experience in assisting donors Group as the thought leader non-profit organization, The

The Fine Art Group can guide you through different strategies to release value from your impact investing, a non-profit

Types of Non-Cash Passion Assets:

Sculpture Watches

and Sports Memorabilia

Spirits

Manuscripts

Collections

PHILANTHROPY CASE STUDIES

Lifestyle Simplification

One of our clients had one of the best Books and Manuscripts collections in the US. Their four children and the seven grandchildren were not interested in inheriting it. However, the multigenerational family wanted to create a legacy in their honor.

The family decided to monetize the collection and create a scholarship fund in the client's name. The Fine Art Group gave assistance throughout the entire selling process. We negotiated the costs associated with the monetization process and determined the best sale venue in order to maximize the selling proceeds.

Client is Downsizing and Looking for Solutions

A client had owned a collection of men’s luxury wristwatches and a ladies jewelry collection for the past 20 years. The collection had appreciated over time and had a current Fair Market Value of $1 million. Without heir, they contacted a donor advised fund to create a charitable account with flexible granting options to donate to diverse non-profit organizations.

The donor advised fund worked with The Fine Art Group to monetize the collection to achieve the bestselling results.

All proceeds from the sale were donated to the donor advised fund and put available for the collector to start contributing to different charitable causes.

Tax Savings by Donating Appreciated Artworks

A client had built a Modern and Impressionist collection over the past 20 years. His focus had changed over the recent years and two past acquisitions no longer fitted the goals of the collection.

The Fine Art Group advised on a hybrid approach. One painting was directly donated to a museum and we assisted with the tax-related donation appraisal.

We guided him through the process of donating the other piece to a donor advised fund, with a subsequent sale at auction after the donation. In this way, our client significantly contributed to multiple charitable causes while saving taxes.

COLLECTION MANAGEMENT SERVICES

FULL COLLECTION INSIGHT

From detailed provenance research to uncover the inventory management, security consultation and conservation specialist teams treat every work of art as if it were their

Collection Management Deliverables

– Inventory management

– Database implementation

– Cataloguing

– Provenance research

– Insurance advice

– Oversight of transportation, installation and storage

– Conservation planning

– Disaster planning

– Museum loan advice

– Security arrangements consulting

– Philanthropic project arrangements

– Details of recognized conservation and restoration

– Introductions to experienced tax planning professionals

– Valuations for the transfer of items into trusts, and companies or partnerships

– Identification of research projects and links to potential institutional partners

COLLECTION MANAGEMENT

With our Collection Management service, we provide a comprehensive overview of where each artwork of a collection currently sits in its market, and a bespoke strategy around the most effective management of your collection.

The Fine Art Group’s Art Team can guide you through the whole collection building process and complete thorough due diligence on all potential purchases.

We can also prepare tailored, detailed sale strategies for all works in your collection.

Our process for Collection Management remains detail-oriented and numbers-driven.

APPRAISALS

FROM ACQUISITION TO SALE

Strategic Sourcing

– Strategy for the creation of a valuable and diversified collection.

– Access to artwork and sought-after primary and secondary market opportunities at advantageous prices.

– In-house expert condition checks and viewings.

– Extensive, proactive sourcing and access to works held off-market.

– Full due diligence reports on all potential acquisitions.

– Private sales negotiations.

– Bidding strategy and vetting.

Portfolio Management

– Cataloguing and database management.

– Artwork logistics including storage and shipping at negotiated fees, reduced to advantageous trade rates.

– Advice on exhibition and loan management.

– Supervision of all aspects for conservation, framing and logistics to ensure that the relevant experts and trusted technicians are always used.

– Regular, rolling Fair Market Valuations for the collection to fulfil rolling insurance and inventory audit requirements.

Exit Strategy

– Assess market conditions to determine sales approach and timing.

– Development of sales strategy to maximise price while mitigating downside risk.

– Advice on debt financing as an alternative means to releasing value or enhancing returns.

– Auction and private sale consignments.

– Pre-sale and Post-sale logistics.

COLLECTION AUDIT SERVICES

AUDITING YOUR COLLECTION

A Collection Audit is a customized review of a collection or a subset of a collection, looking at holistic solutions for the short-, medium- and longer-term goals of the collector.

It can pivot across different requirements and provide variable depths of valuation and strategy against defined goals.

Examples of types of Collection Audit can include:

A Keep/Sell Strategy

– Which artworks are primed for sales due to a major artist event or uplift in specific markets?

Legacy Planning and Orientation

– Is the collection set up properly for Succession Planning, Financial Return or Museum Deaccession?

Gap Analysis

– Are there key works or artists that could be considered adding?

Portfolio Weighting/Diversification

– Does the collection have the appropriate weighting across artists, types, and other defining characteristics

Informational Review

– Does the client have enough information on works in the collection to take to market?

Original purchase information, condition reports, high-resolution images?

Targeted Upgrades

– Are there works in the collection that are not indicative of an artists oeuvre, or can better examples be considered?

Storage Review

– What is the value of property held in storage? Does the annual rental rate and insurance charges match the collection value and opportunity?

Image and Condition Review

– Are the works consistently photographed to preserve all information, including condition?

Consolidation Strategies

– In planning a legacy collection, is there a desire to create a ‘core’ collection that clearly aligns around a theme, message or strategy?

Collection ‘through-lines’

– Are there selections of material that could be used for key exhibitions either to highlight the collection, artist or theme within the collection?

Digital Preservation

– Are the digital archives well prepared for generational transfer? Can we look to next-gen solutions like blockchain to protect the legacy and information on the collection?

KEEP & SELL STRATEGY

Our experts conduct a thorough and custom Keep & Sell Strategy where our suggestions are presented in terms of what pieces to hold and which ones to sell based on the objective of value preservation and value creation of the collection. Our process for Collection Audit remains detail-oriented and numbers-driven.

IMAGE ARTIST ADVICE COMMENT

Mid-levelworksbyCyTwomblycontinuetosell well; however; top tier works have seen some pricesoftening,withseveralhighprofileworks recently selling to guarantors or below their reserve.Withcurrentmarkettrendsfocusingon historicallyunder-recognizedartistsandyoung emerging artists, interest isn't presently at its strongest.Withalongstandingtrackrecordand strong institutional and art historical support, prices will return in the long term.

Hughes is one of the top selling artists belongingtotheUltra-Contemporarycategorythathas seen a huge surge in prices over the past two years. Auction results shifted from $50,000100,000 in 2019 to $300,000 - over $1m in 2021. With such a a fast progression, prices at the current levels are unlikely to sustain themselveslong-term.Supplywillincreasewith sellers attracted by strong results; thus, access is no longer as limited, and buyers are able to be more selective over the works they bid on. Accordingly,itisadvisabletotakeadvantageof the current market momentum.

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Over the past three years Kruger's commercial success has gradually developed following a slew of institutional exhibitions and renewed curatorial attention, including a major solor presentation at the Venice Biennale in 2022 and largescale installation at MoMA, New York.Regardless,Kruger'smarkethasroomfor growth,withanauctionrecordof$1.6mthisremainsdrasticallybelowhermalecounterparts from the same period. Private trading prices are currently significantly higher than auction results,furtherindicatingthereisroomforprice development,2023-2024 willseetheopening of a major travelling extrospective which will continue to fuel interest in Kruger's under-recognized career.

Cy Twombly HOLD

Shara Hughes SELL

Barbara Kruger HOLD

YOUR OWN DATABASE

Artlogic's inventory system allows users to store and manage unlimited information and images for each artwork, including provenance, editions, literature, location, ownership history, shipping, condition, and more.

Artlogic - Key Advantages

– Space – Unlimited storage space for images and information for artworks, including location, purchase details, insurance values, condition, provenance, shipping etc.

– Value - The unlimited package is £90 per month per user.

– Reporting - Database with up-to-date inventory management and generation of a variety of branded documents and reports in seconds.

– Contacts - Store information about your suppliers, gallerists, advisors and even friends and family if you wish. Each record can include all contact details, conversations and communications, notes and images.

– Client Orientated - Extremely elegant presentation. Unlimited private view app - handy presentation tool. Possibility to create your website linked to the database.

– Assistance - 24h support for customers – free assistance with data migration – free training.

– Security - Secure daily backups, 24/7 service monitoring, encrypted connection.

CONTACTS

GLOBAL

Philip Hoffman

FOUNDER & CEO

philiphoffman@fineartgroup.com

+44 (0) 20 7478 2070

AMERICAS

Anita Heriot

PRESIDENT, AMERICAS

anitaheriot@fineartgroup.com

+1 (610) 254 8400

HONG KONG

Patti Wong

CHAIRWOMAN

patti.wong@pwa.asia.com (+852) 2261 2178

LONDON – NEW YORK – HONG KONG