Leslie Rankow Fine Arts

INTERNATIONAL ART ADVISORY SERVICE

Tag: bank of america private bank

Dana Prussian, VP Art Services, Bank of America Private Bank: a focused career path

Dana Prussian
VP, Art Services, Bank of America Private Bank

 

ON MAY 30, 2018, WEALTH MANAGEMENT.COM FEATURED AN ARTICLE ON THE NOW ESTABLISHED INCLUSION OF ART AS AN ASSET CLASS.

AT CHRISTIE’S, THE COLLECTION OF PEGGY AND DAVID ROCKEFELLER SET A RECORD HIGH FOR THE MOST VALUABLE PRIVATE COLLECTION   SOLD AT AUCTION AT $833 MILLION.

n.b. Gathered over a lifetime and handed down from previous generations, the collection reflects the Rockefeller family’s deep, life long passion for Impressionist works of Art, American paintings, English and European furniture, Asian works of art, European ceramics and Chinese porcelain,  silver, and American decorative arts and furniture. What was a passion for collecting for pure aesthetic joy has been transformed into a philanthropic legacy. The proceeds from the Estate sale at Christie’s have gone to support selected charities in which the Rockefellers believed. 

Peggy and David Rockefeller sale
Christie’s New York

“THE VIGOROUS BUYING THIS WEEK FOR EVERYTHING FROM A MONET TO A MONEY CLIP … SURPRISED MANY ART EXPERTS,” ACCORDING TO A NEW YORK TIMES REPORT ON THE AUCTION.

INDEED, A CONVERGENCE OF FACTORS IN RECENT YEARS HAS GENERATED HIGHER INTEREST IN ART AS AN ASSET THAT HAS THE POTENTIAL TO APPRECIATE: INTEREST RATES AT HISTORIC LOWS, STOCK MARKET VOLATILITY, TECHNOLOGY CREATING INCREASED TRANSPARENCY IN THE ART MARKET AND INCREASED INTEREST IN ART GLOBALLY, AMONG OTHERS.

ALTHOUGH DEMAND FOR ART FLUCTUATES, WITH DIFFERENT AREAS OF THE ART MARKET EXPERIENCING VARYING LEVELS OF DEMAND, THE GROWING TREND OF VIEWING ART AS AN ASSET CLASS HAS MEANT INCREASED INTEREST AMONG WEALTH MANAGEMENT PROFESSIONALS. NEARLY 90 PERCENT OF WEALTH MANAGERS SAID THEY THINK ART AND COLLECTIBLES SHOULD BE INCLUDED IN WEALTH MANAGEMENT OFFERINGS, ACCORDING TO THE DELOITTE 2017 ART & FINANCE REPORT.

https://www.wealthmanagement.com/high-net-worth/art-asset-class

Christie’s Education

IN TODAY’S LRFA BLOG POST, WE ARE FASCINATED TO FOLLOW DANA’S ASTUTE ACADEMIC AND PROFESSIONAL JOURNEY REFLECTING BOTH HER PASSION AND HER COMMITMENT TO MASTERING THE ART OF FINANCE.  IN TODAY’S WORLD, MANY PRIVATE AND PUBLIC BANKS AND FINANCIAL INSTITUTIONS HAVE DIVISIONS SPECIALIZING IN OFFERING LOANS AND ADVISE ON COLLECTING, THE BANK OF AMERICA BEING ONE OF THE MOST OUTSTANDING. MANY UNIVERSITIES AND AUCTION HOUSES OFFER CLASSES AND DEGREES. CHRISTIE’S, FOR EXAMPLE,  OFFERS A GRADUATE DEGREE: MASTERS IN ART, LAW AND BUSINESS.

https://www.christies.edu/new-york/courses/degree/masters/art-law-business

A FEW YEARS AGO WHEN DANA WAS STILL IN SCHOOL, SHE WAS A PIONEER AND CARVED OUT HER OWN ACADEMIC PATH TO GAIN RECOGNITION AS A FINANCIAL ADVISOR TO INDIVIDUALS AND FAMILIES OF HIGH NET WORTH.

DANA, THE LRFA BLOG WARMLY WELCOMES YOU BACK.

WERE YOU COMMITTED TO THE IDEA OF COMBINING ART AND FINANCE FROM THE BEGINNING OR DID THE IDEA EVOLVE AS YOU PROGRESSED IN SCHOOL AND PROFESSIONALLY?

Yes, pretty much. That said, when I graduated, the idea of “Art as an Asset Class” was only just taking shape. It certainly was not institutionalized like it is now. I knew that I wanted to jump onto that track as soon as possible, but was not sure how long it would take.

WHAT WAS YOUR FIRST POSITION AND DID IT COMBINE YOUR TWO AREAS OF EXPERTISE?

It had nothing to do with the art world! I had just come out of a Christie’s internship when I graduated, and I knew that if I wanted to work in the Art Finance sphere, I needed the Finance component. I knew nothing about finance! Like one Columbia Econ class, nothing. So I got into a two-year rotational analyst program at Barclays, which gave me a necessary understanding of financial products.  

A SELF-MADE MAN, HENRY PHIPPS UNDERSTOOD THE CHALLENGES INVOLVED IN CREATING WEALTH. AS A FOUNDING PARTNER AND CHIEF FINANCIAL OFFICER OF CARNEGIE STEEL, HIS INNOVATIONS MATCHED HIS WORK ETHIC. HE ALSO UNDERSTOOD THE CONNECTIONS BETWEEN COMMUNICATING AND SUSTAINING VALUES, AND GROWING AND PRESERVING WEALTH FOR HIS FAMILY. PHIPPS FOUNDED BESSEMER TRUST WITH THIS CONNECTION IN MIND. HE COMMUNICATED HIS INTENTIONS AND GUIDANCE TO EACH OF HIS CHILDREN, URGING THEM TO SPEND WISELY AND WORK COLLABORATIVELY TO PRESERVE AND MAINTAIN THE FAMILY’S WEALTH AND VALUES FOR GENERATIONS TO COME.

https://www.bessemertrust.com/what-makes-us-different/key-facts

YOU WERE AT BESSEMER TRUST FOR OVER THREE YEARS. HOW DID THEY GROOM YOU FOR YOUR CURRENT POSITION?

Bessemer was the perfect intermediary step to my transitioning into Art Services. The advisors and culture are truly crème de la crème, and I was fortunate enough to be part of an incredibly motivated team. Working as a Client Advisor there taught me three invaluable skills: how to hustle and grow a book of business, what it looks like to provide exceptional client service, and how to look at a balance sheet holistically. I worked with several art collectors who were part of our book, and by the end of my time at Bessemer, I knew that I had the skill set to serve a super sophisticated group of collectors and focus solely on the art on their balance sheets. I ultimately left Bessemer because, in the time I was there, the concept of “Art as an Asset Class” took shape more formally and there was a new spot open at Bank of America Private Bank.   

WHAT ARE YOUR RESPONSIBILITIES IN THE ART SERVICES DIVISION AT BANK OF AMERICA PRIVATE BANK?

I’m one of two VPs of Art Services on the team. The two of us have divided the country in half and lead Art Lending and Consignment efforts for our markets. I focus on our NYC market in addition to Miami, Palm Beach, Dallas, Houston, DC, and Long Island. You can imagine, that’s a lot of art collectors and internal advisors to cover!

HOW DID THE PROGRAM DEVELOP? WHEN WAS IT INITIATED AND HOW HAS IT GROWN AND CHANGED SINCE ITS ONSET?

In 2015, the Private Bank (formerly US Trust) hired Deloitte to implement a strategy that would serve our clients and their art collections. The head of that consulting project came on board as our National Arts Services Executive, and he built out the program from there. In the last four years, our team has grown our Art Lending book from $2 billion to $8 billion. We’re now the largest art lenders in the country.

 

Bank of America
Art Services
Panel Discussion

WHAT IS THE SCOPE OF SERVICES THAT YOU OFFER COLLECTORS AND INSTITUTIONS?

We are obviously highly focused on art lending, but we have expanded our services beyond lines of credit. We offer the only Consignment Services platform at a private bank, so we can act as agent for a client who wishes to sell at auction. We negotiate everything from enhanced financial packages to sales and marketing strategies.

IN OUR NEXT LRFA BLOG POST, DANA PRUSSIAN WILL SHARE WITH US THE WORKING OF THE ART SERVICES DIVISION AT BANK OF AMERICA PRIVATE BANKING. THANK YOU, DANA, AND THANK ALL THE FOLLOWERS OF THE BLOG FOR YOUR CONTINUED INTEREST!

Introducing Dana Prussian, Bank of America Private Bank Art Services, combining business acumen and a passion for art

Dana Prussian
VP, Art Services, Bank of America Private Bank

IN MARCH 2016, THE NEW YORK TIMES PUBLISHED A STUDY ON A TREND IN THE ART MARKET WHICH HAS BEEN ON THE RISE  FOR AT LEAST THE LAST DECADE: ART AS AN ALTERNATIVE ASSET AND AS COLLATERAL FOR A LOAN.

Highlights from

ART AS COLLATERAL IN A FICKLE MARKET, Scott Rayburn, March 7, 2016, New York Times

Art and money have long been closely linked, but in the 21st century, it seems, the two have become synonymous.

One way to extract the latter from the former is art-based lending, in which paintings or sculptures are used as collateral for loans. Now that the notoriously fickle and opaque art market is seemingly headed toward a downturn, with money tighter and the prices of many artworks lower, will this kind of niche financing become more attractive to collectors?

Art lenders who have offered full-recourse loans, secured by a range of personal assets, have faced unfavorable publicity. During the financial crisis of 2008-2009, the photographer Annie Leibovitz pledged her four homes and the rights to her images to secure a $24 million loan from Art Capital. She was unable to service the debt, and a high-profile court action ensued.

“This is an opportunity,” Andrea Danese, a co-founder of Athena and the company’s chief executive, said in a telephone interview. Mr. Danese said there was potentially about $150 billion worth of art in private hands that could be collateralized. He identified three groups to whom his company’s products might appeal.

“First, there are billionaires who put the money into private equity deals, where they make 20 to 25 percent,” he said. “Then there are collectors with, say, $30 million of art they leverage to buy another piece. And thirdly there are the art-rich and cash-poor in their 70s and 80s who don’t want to sell because of capital gains or estate taxes.”

But art lenders, like pawnbrokers, can get a boost when markets dip.

THIS UNPRECEDENTED DEVELOPMENT IN THE ART MARKET OVER THE LAST DECADE HAS RESULTED IN A FOCUS ON THE FINANCIAL ASPECTS OF ART. ART IS SEEN NOT ONLY AS AN OBJECT THAT IS AESTHETIC PLEASING OR CHALLENGING AND INTELLECTUALLY FULFILLING BUT ALSO AS A NEW ALTERNATIVE ASSET CLASS OFFERING INTERESTING BUSINESS OPPORTUNITIES. THUS, IT HAS PRODUCED AN OPPORTUNITY FOR EXPERTS IN THE FINANCIAL WORLD WHO ARE INTERESTED IN ART TO ENJOY EXCITING AND INNOVATIVE CAREERS THAT COMBINE THE TWO.

DANA PRUSSIAN, VICE PRESIDENT, ART SERVICES AT BANK OF AMERICA PRIVATE BANK, IS AN IMPRESSIVE, ARTICULATE AND KNOWLEDGEABLE WOMAN WHO IS  APPLYING HER INVESTMENT AND FINANCIAL BACKGROUND AND TRAINING TO ASSIST INDIVIDUAL COLLECTORS  AND ART INSTITUTIONS IN THE ACQUISITION, DONATION AND DEACCESSION ART AND TO USE ART AS AN ALTERNATIVE INVESTMENT VEHICLE.

Linnea in Monet’s Garden

THE LRFA BLOG IS HONORED TO WELCOME DANA PRUSSIAN.

DANA, SO MANY THANKS FOR TAKING THE TIME TO CONTRIBUTE TO THE LRFA BLOG. WHERE DID YOU GROW UP? DID YOU HAVE AN INTEREST IN ART AT AN EARLY AGE AND, IF SO, HOW DID THAT COME ABOUT?

I grew up in Louisville. My parents encouraged me to be active in the arts- I danced with the Louisville Ballet, took acting classes, played the violin. I’m not sure where my interest in fine art came about, though I do remember being obsessed with Linnea in Monet’s Garden when I was very young. Did anyone else have that doll? Book? Video? Childhood affinity for Giverny?

Diego Rivera Industry Murals
Detroit Institute of the Arts

WAS YOUR FAMILY INTERESTED IN OR COLLECT ART?

Not particularly, but my family has always supported the arts, whether it was the symphony, the theater, or the ballet. Much of my extended family lives in Bloomfield Hills, MI, and my aunt was a docent at the Detroit Institute of Arts (DIA) while I was growing up. I vividly remember visiting Rivera’s Detroit Industry Murals and the beautifully intricate Dutch Golden Age paintings.

Gerard der Borch, The Younger
Lady at Her Toilette
Collection of the Detroit Institute of the Arts

WHAT IS YOUR ACADEMIC BACKGROUND?

I moved to New York City 10 years ago to attend Barnard College at Columbia University where I received a degree in both Art History and Political Science. It was really my secondary school that influenced me more than anything. I went to Louisville Collegiate School, which is this very close-knit, traditional college prep school, and I still feel endlessly lucky to have attended. We had a required course, HATA (or, History and the Arts) that was a two-year world history class with corresponding art, dance, music, and religion. It was my first serious exposure to art history and the material was woven in this organic, experiential way. After that course, I moved right into AP Art History, and it was a love story from there. I ended up passing out of the first three levels of art history when I arrived at Columbia. Even though I was so influenced by Collegiate, that there is nothing, NOTHING like being an Art History student in New York City. My senior seminar was at the Met on Monday mornings (the good old days when the Met was closed on Mondays and we essentially had the museum to ourselves), and I vividly remember meeting classmates on the Met steps on crisp autumn mornings, taking class with one of the Met’s curators, and then heading down 5th avenue to Christie’s for my fall internship. You simply cannot replicate that experience anywhere else.

Johannes Vermeer
Young Woman with a Pitcher
Metropolitan Museum of Art

WHAT DID YOU INTEND YOUR CAREER PATH TO BE WHEN YOU FIRST STARTED WORKING?

My exact role, except it did not exist when I graduated!

IN OUR NEXT LRFA BLOG POST, DANA WILL START TO DETAIL HER PROFESSIONAL ROLES THAT LEAD HER TO HER CURRENT POSITION. GREAT INSIGHTS FOR EVERYONE INTERESTED IN COLLECTING OR IN FOLLOWING IN HER FOOTSTEPS!

PLEASE JOIN US!