Art Capital, How art is finding its way into new spaces

In 2012 Britain’s famed Damien Hirst was commissioned by renowned chef Mark Hix to create a piece for his restaurant Tramshed. The outcome was Hirst’s ‘Cock and Bull’, taking his inspiration from Hix’ chicken and beef focused menu. It still stands in Tramshed today and considering Hirst’s pieces often sell for sums well into the millions, it is certainly a prized piece for the meat based restaurant. As a calling card for patrons it has also lead the restaurant to bustling successes, continuing a long-standing tradition of restaurants and hoteliers using art as a means to attract custom.

For new establishments of course, this can be a very costly way to market themselves. Aiding the purchase or hiring of pieces of art globally are Art Capital Group. A firm tailored exclusively for the provision of funds for art investors and collectors worldwide, they pride themselves as pioneers in the industry. With bespoke, sophisticated service and unique financial products, their diverse clients include individuals, museums, estates, and family offices. They boast a network of resources in both art and finance and are able to independently deliver creative financial solutions for the budding collector.

This vision and understanding of what is a more atypical investment can prove vital to the acquiring of art by more unusual institutions. As is its nature, the art world is ever changing and now so to are its buyers. K11 is an enterprise in China which is pioneering the concept of the art mall, essentially making the purchasing of art more accessible to the average consumer. Artist Sir Antony Gormley was recently commissioned with designing an entire room for Beaumont Hotel in London, which guests can now enjoy for a night at a time for a price of £2,500.

Hotels, restaurants and malls world over are increasingly seeing the unique value they can bring to customers by providing individual pieces of art, or indeed immersive experiences. This in turn affects revenue very positively. In providing unique financial support which can be impossible to obtain from traditional financial institutions, firms such as Art Capital Group are allowing for increases in this endeavour. As the first to execute these financial solutions, its entrepreneurship can give rise to similar unique endeavours world over.

Art Capital Group and a Burgeoning Art Market

Art Capital Group are pioneers in the developing world of art finance, operating from London, New York, Los Angeles and Luxembourg. For over sixteen years they have been global financiers for those aspiring to investing in the art world and to date have overseen over $5 billion in loans exclusively for the investment in art. Art businesses, collectors and financial firms have all sought expert consultation from Art Capital Group. Their bespoke service offers an individual approach to each client, providing a luxury service attentive to their customer’s needs and ideas.

The art market has in the last five years increased year on year. Although it does not come without its risks, investors in the art world may have recently been spurred on by the renowned successes of several famous sells. Gauguin’s ‘When Will You Marry’, a Post-Impressionist oil painting by the French artist, sold for almost $300 million last year. Contemporary art however is in general experiencing a particularly exciting boom, so much so that market commentators do not see the interest in contemporary art as being able to reach greater heights. Individual investors in particular are contributing to a rise in art sales, and Art Capital Group reports that art comprises of 10-20% of assets for the typical ultra-high net worth client.

Art has its appeal for being a meaningful asset, whether for personal enjoyment or for greater investment. Speculators attribute the growing demand of individual art collectors as evidence of a growing cultural focus on the luxury goods, driven in part by the ‘celebrity’ status of attained wealth. Frieze, the annual contemporary art fair in New York, this year announced a partnership with Hollywood agency WME-IMG. This move highlights a push to attract greater audiences, and has been reflected worldwide in similar enterprises.

In the current financial climate worldwide it is also seen as a stake in investing something that is highly mobile and not currency dependent. Art Capital Group cite their success as reflective of the growing demand for art finance which banks are simply unable to meet. In offering a flexible and customized creative service they are opening up opportunities for the collector which they would not be exposed to by traditional lender means.

Art Capital Group, Advice about Investing in Art

Art is a notoriously volatile market, and an investment could make or break a business or individual. It can prove near impossible to find a willing investor, and the complexities of its unpredictability steers most banks away from any provision of loans for art aficionados. Investments in art are also unregulated. Yet its popularity as a means to invest some cash seems on the rise. Whether encouraged by 2015’s art sales combining to a reported $37 billion globally, or the stock markets own current instabilities dissuading people from more traditional investments, the art business’ appeal to both firms and individuals is not on the wane.

So some insight from a few art insiders:

‘Art and the market in general is largely driven by psychology. It’s supply and demand economics but what makes people spend, the impetus to acquire, is something which comes from a sense of well being.’ Ian Peck, founder of bespoke art financing firm Art Capital Group. In other words, although the art market works in essence like any other market, there is an inherent worth in a piece of art that goes beyond the cut & dry business of buy and sell.

‘If you do buy art, buy what everyone else is buying. It is an entirely false market and one day it will implode, but at the moment it is fiercely profitable.’ Brian Sewell, art critic. While this may not inspire hope in any aspiring art dealer, it is profitable to do your homework. The trends arise with good reason and a keen awareness of the current climate of the industry, and where money is driving interest, is a good place to start.

‘Artists need a lot of collectors, all kinds of collectors, buying their art.’ Charles Saatchi, renowned art collector and dealer. While it is crucial to follow market trends, investing in art from either a business or an individual standpoint is an opportunity to explore your own interests. Firms like Art Capital Group define their success by their recognition that an investment in art can provide both monetary and emotional value. If collectors execute investment strategies with a keen eye and a driving force to fulfill aesthetic objectives as well as financial ones, they will see success.