Confident decision making regarding financial planning for a family's art assets demands efficient access to dependable resources and trustworthy relationships.
The interests of financial families with exceptional art wealth have become more diversified and interdependent, necessitating greater integration than ever before among wealth managers and art market professionals. With the art market becoming increasingly less predictable even the most experienced collectors can benefit from professional guidance.
Fine Art Wealth Management is a members based advisory platform representing a private network of close peers working together to solve the unique challenges facing global financial families with exceptional art wealth.
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Types of Art Wealth Management Providers:
The firms vying to serve the financial planning needs of sophisticated collectors encompass the full spectrum of the wealth management industry. A growing number of firms, from trust & estate practitioners to wealth managers and private client law firms are building business units that serve the ultra-wealthy collector. It can be difficult for an art collector to distinguish those firms that offer truly integrated art wealth management services.
Below we have identified the types of art wealth management providers in each of these groups. Each of these providers has a unique and distinctive contribution to managing art wealth. Sophisticated collecting families may use all of these resources in some capacity.
Covers private banks, single family and multi-family offices, asset managers, and independent integrated wealth management professionals advising UHNWIs with exceptional art wealth. A few financial services firms have begun to enter this space and offer assistance with art research, acquisitions and sales, curatorial management, building and dispersing of collections, estate planning, sponsoring art-related events and conferences.
Trust & Estate Practitioners
Practitioners dealing with family inheritance and succession planning for serious collectors of fine art through strategic estate planning and trust administration. Includes specialist providers advising on the transfer of artworks into trusts, foundations or companies with a view to preserving and protecting art assets for future generations.
Art Lawyers & Accountants
Private client law firms and specialist tax advisors which are uniquely placed to advise on protecting, preserving and enhancing art and cultural assets. Includes the purchase and sale of art, moving art across borders, dispute resolution, art philanthropy, art financing, and creating tax effective art holding structures.
Art lenders can currently be identified as recourse lenders and non-recourse lenders depending on their assessment of the borrower's credit worthiness. A recourse loan is secured by the art assets but also guaranteed by the borrower. A non-recourse loan on the otherhand, is secured solely by the art asset underlying it. While the majority of art financing by value at present remains with banks, the number of speciality lenders that carry out art financing is growing.
Art Investment Funds
Art Funds are generally privately offered investment funds dedicated to the generation of returns through the acquisition and disposition of works of art. They are typically managed by a professional investment management or advisory firm who receives a management fee and portion of any returns delivered by the fund.
Family Educators & Facilitators
Experienced in family wealth education and next generation training to help perpetuate the family legacy around family collections and combine the family's passion for art with wealth giving. This includes organisations which create a highly exclusive environment with an emphasis on privacy, create genuine opportunities for peer group learning, and offer a dynamic agenda which focuses on up-to-date thinking and educational content.