Leslie Rankow Fine Arts

INTERNATIONAL ART ADVISORY SERVICE

Tag: Rockefeller Collection

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!

The art market, current and future with expert Gabriela Palmieri, founder and president of PFA, Inc.

Gabriela Palmieri

AT THE SECOND NEW YORK ART BUSINESS CONFERENCE THAT TOOK PLACE AT TIME WARNER LAST WEEK, ONE OF THE PANELISTS SPEAKING ON THE SUBJECT OF REGULATION IN THE ART WORLD WAS ELIZABETH SZANCER, WHO SERVES ON THE BOARD OF DIRECTORS OF THE ASSOCIATION OF PROFESSIONAL ART ADVISORS. SHE SPOKE OF THE MISSION OF THE APAA TO ESTABLISH THE BEST POSSIBLE GUIDELINES AND PRINCIPALS EMPHASIZING INTEGRITY, CONNOISSEURSHIP AND EDUCATION AS THE FOUNDATIONS OF PROFESSIONAL PRACTICE. IN 1962, THE ART DEALERS ASSOCIATION OF AMERICA WAS FOUNDED WITH THE STATED PURPOSE OF PROMOTING THE HIGHEST STANDARDS OF CONNOISSEURSHIP, SCHOLARSHIP AND ETHICAL PRACTICES WITHIN THE ART DEALING PROFESSION.

ADAA at the Park Avenue Armory, 2018
303 Gallery

IN AN INDUSTRY IN WHICH MOST OF ITS PARTICIPANTS ARE ART- AND ARTIST-LOVING, HONEST AND PROFESSIONAL PEOPLE, WE TEND TO HEAR AND REMEMBER ONLY THE NEWSWORTHY, SENSATIONALIST TALES OF FAKES AND FORGERIES, THE STUFF OF LEGEND, THE SUBJECT OF BOOKS, FILMS AND TELEVISION. THE LEGIONS OF HARD-WORKING AUCTION SPECIALISTS, GALLERY OWNERS, PRIVATE ART DEALERS AND ADVISORS OFTEN GO UNMENTIONED.

THROUGHOUT HER PROFESSIONAL CAREER AT SOTHEBY’S, GABRIELA PALMIERI DEMONSTRATED ALL THE QUALITIES OF PROFESSIONALISM, CONNOISSEURSHIP AND INTEGRITY THAT THE INDUSTRY’S “POLICE” ADVOCATE.

 

Gabby Palmieri and collector Adam Sender

WE ARE DELIGHTED TO WELCOME HER INTO THE RANKS OF ADVISOR AND PRIVATE DEALER. GABBY CAN BE REACHED AT PFA, INC, 4 EAST 78th STREET, IN NEW YORK.

Video, Frieze New York, on highlights of the 2013 Frieze New York art fair

http://www.sothebys.com/en/news-video/videos/2013/06/Exclusive-Video-Inside-Frieze-New-York-Gabriela-Palmieri.html

GABBY, WHAT PROMPTED YOUR DECISION TO BECOME A PRIVATE DEALER AND ADVISOR AND LEAVE THE AUCTION WORLD?

The auction house was changing, many of my closest and trusted colleagues had moved on to different ventures, and the timing was perfect to focus on being able to work with my clients in the most direct and transparent fashion; without bias in advising them on the purchases and sales.

Gabriela Palmieri
Maestro Cares Foundation Gala

WHAT ARE SOME OF THE SERVICES THAT YOU, WITH YOUR VAST EXPERIENCE, CAN PROVIDE YOUR CLIENTS?

I find that for every client that I work with, I have curated a different strategy for different needs – whether it is advising on private or auction acquisitions; sourcing opportunities for private sales; being their client advocate as they negotiate selling through the auction houses; identifying guarantee opportunities from auction houses; valuation services. Virtually nothing unchanged from the services I provided in-house; now simply without the bias.

WHAT ARE SOME OF THE WARNINGS THAT YOU WOULD CAUTION YOUR CLIENTS OR COLLECTORS IN GENERAL?

READ THE FINE PRINT. Limitations on contracts and condition reports seem to be some of the more frequent headaches that seem to keep resurfacing.

Claude Monet
Waterlilies
The Collection of Peggy and David Rockefeller Sale, Christie’s NY, May 2018

WHAT DO YOU THINK OF THE CURRENT ART MARKET?  HOW LONG WILL IT SUSTAIN ITSELF AT THIS LEVEL?

I think that we are definitely in for a strong May, due largely part to what will be the unprecedented prices and depth of bidding we are certain to see with Rockefeller.

n.b. The Collection of Peggy and David Rockefeller will be sold at Christie’s New York in May 2018. The sale will support David Rockefeller’s pledge to direct the majority of his wealth to philanthropy and provide for the cultural, education, medical and environmental causes long supported by his family. The sale ranges from Impressionist and Post-Impressionist works of art, American paintings, English and European furniture, and the decorative arts. 

English and European Furniture
The Collection of Peggy and David Rockefeller
Christie’s, May 2018, New York

WHAT ARE SOME OF THE MOST SIGNIFICANT CHANGES YOU HAVE SEEN IN THE ART MARKET IN THE LAST DECADE?

The most fascinating phenomenon that I have witnessed first-hand has been the extraordinarily regenerative nature of the market, which has led to the unparalleled trajectory of the art market since 2010.  In other words, if one buyer or region for that was significantly active stepped away from the market, there was another buyer or participant in the market that replaced them. This simply illustrated the depth and diversity of the global art market and attests to art being a prescient art investment.

WHAT DO YOU ANTICIPATE ARE SOME OF THE MOST SIGNIFICANT CHANGES WE WILL SEE IN THE ART MARKET IN THE FUTURE?

One topic that concerns me (and many at the moment) is primarily what the impact of the abolishment of like-kind-exchanges (1031s) will have on the market place. I feel that the detriment will be that it will have adverse effects on supply on the market as it will become increasingly difficult for auction houses (and individuals) to convince collectors to part with pictures with significant capital gains. Therefore, while the market often directs its concerned focus on the demand in the marketplace, the bigger foreseeable issue could very well be supply. 

n.b. See the LRFA blog on March 15, 2018 in which Ian Prior and Evan Beard of U.S. Trust speaks in detail on the effect of phasing out swap exchanges.  

Gabriela Palmieri, auctioneer
Skowhegan Awards Dinner, 2017

SO MANY THANKS TO GABBY PALMIERI FOR HER EXPERTISE AND EXUBERANCE. ON THE MOST PERSONAL NOTE, HER FRIENDSHIP AND COUNSEL HAS MEANT A GREAT DEAL TO ME OVER THE YEARS. MANY MORE TO COME!

IN OUR NEXT LRFA BLOG, I AM DELIGHTED TO WELCOME RON WARREN, PARTNER AT MARY BOONE GALLERY, ONE OF THE MOST ESTABLISHED AND INNOVATIVE GALLERIES, OpENING IN 1977 IN SOHO AT THE LEGENDARY “LEO CASTELLI” BUILDING, 420 WEST BROADWAY.

LOOKING FORWARD TO SPEAKING WITH RON, AND THANKING YOU ALL FOR YOUR READERSHIP AND SUPPORT!