Leslie Rankow Fine Arts

INTERNATIONAL ART ADVISORY SERVICE

Tag: Christie’s Education

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!

APAA: best practices now and in the future

APAA

THE ASSOCIATION OF PROFESSIONAL ART ADVISORS IS UNIQUE IN OFFERING A FORMAL REGULATORY BODY OF RULES FOR THEIR MEMBERS. THIS CODE OF ETHICS MAINTAINS THAT FIRST AND FOREMOST, AN ADVISOR SHOULD SERVE THE NEEDS OF THE CLIENT, NOT HOLD INVENTORY, OR ACCEPT ADDITIONAL COMPENSATION THAT COULD CREATE A CONFLICT OF INTEREST.
ON A PRACTICAL NOTE, THE EXPERIENCE AND EXPERTISE AN ADVISOR CAN DEMONSTRATE IN THE DAILY REQUIREMENTS OF THE JOB (SHIPPING, INSURANCE, FRAMING, CONSERVATION, ETC.)  REASSURE A CLIENT THAT THE ADVISOR KNOWS WHAT HE OR SHE IS DOING WITH THE DETAILS AS WELL AS THE BIGGER PICTURE OF THE MARKET, AUCTION AND BIDDING.  APAA PROVIDES A PHENOMENAL SUPPORT SYTEM, SENDING NEARLY DAILY EMAILS REQUESTING AND GIVING RECOMMENDATIONS OF SPECIALISTS IN THE ART WORLD’S FROM AROUND THE WORLD.
TODAY, WE WELCOME BACK WENDY CROMWELL, BOARD MEMBER OF APAA, FOUNDER AND PRINCIPAL OF CROMWELL ART, LLC. TO SPEAK ON THIS AND THE FUTURE OF APAA.

WENDY, HOW DOES THE APAA PROVIDE INFORMATION ON THE SERVICE INDUSTRY THAT IS CRUCIAL TO THE ROLE OF THE ART ADVISOR? WHAT ARE SOME CATEGORIES OF INFORMATION THAT ARE AVAILABLE?

One of the great aspects of membership is our ability to tap into each other’s expertise. If you need an installer in Shanghai or a framer in Dubai, an APAA member will have a suggestion for you. These contacts and resources – appraisers, framers, installers, insurance experts, lighting specialists, photographers, shipping/storage experts – are part of a database maintained by APAA that is accessible to APAA members.

APAA PROVIDES A CONNECTION TO BUSINESS THAT PROVIDE RESOURCES THAT ARE VITAL TO THE ART COMMUNITY, SUCH AS LICENSED APPRAISALS, MARKETING, LIGHTING, TRANSPORT AND STORAGE. HOW DID THIS LIST EVOLVE AND WHAT ARE THE CRITERIA FOR BEING INCLUDED?

APAA Affiliate members are industry experts who are recommended by current APAA members.  The criteria for Affiliates is similar to those for advisors – everyone has at least 10 years’ experience in the field.

APAA IS PREDOMINANTLY AMERICAN IN MEMBERSHIP BUT WHAT OTHER COUNTRIES ARE REPRESENTED AND WHAT ARE YOUR PLANS TO EXPAND THE MEMBERSHIP NOW THAT WE ARE LIVING IN A GLOBALIZED ART MARKET?

Many of APAA’s US members have been working internationally for decades. Over time, the business practices of our colleagues worldwide have begun to reflect APAA’s code of ethics and best practices, and there are a growing number of APAA members in London, Paris, the Netherlands and Switzerland.  We hope to see more growth in Asia and the Pacific Rim in the coming years.

WHAT ARE SOME OF YOUR FUTURE PLANS FOR APAA IN GENERAL AND FOR PANEL DISCUSSIONS, MEMBERSHIP EVENTS?

Technology makes it possible for APAA members to be in regular communication, but the opportunity to meet in person is always energizing. Our annual meeting is coming up on May 1, and we recently toured the Rockefeller collection at Christie’s in advance of those sales.  We’ll also focus on member programs in Atlanta, Boston, Chicago, London, Los Angeles, San Francisco, Seattle, and Washington DC. The goal is to provide timely, smart information that supports APAA members in their work, and helps spread the philosophy of connoisseurship and best practices to the art field at large.

WENDY, AND THE TEAM AT APAA, THIS COULD NOT HAVE BEEN MORE INFORMATIVE OR BETTER RECEIVED. THE LRFA BLOG THANKS YOU FOR YOUR CONTRIBUTION AND SUPPORT!