Issue copy report by Max F. Watson

ART COLLECTOR REPORT

2014

ART COLLECTOR REPORT

2014

FOREWORD

ACKNOWLEDGEMENTS Special thanks goes to the 25 researchers who built the database from the ground and for contributing to this report particularly to Max Bossier. We would like to extend our gratitude to art collectors, gallerists, dealers, and market experts who supported us during this study. A special note goes to collectors and experts Lothar Albrecht, Brian Butler, Nancy L. Beagan, Daniel Benoit, Philipp Bollmann, Nadine Barth, Janet Chow, Ingrid Dudek, Stephanie Dieckvoss, Lukas Feichtner, Shireen Gandhy, Björn Geldhof, Jack Guthman, David Glasser, Sintha Handajani, Dirk Heinrich, Zheng Hao, Christian Hoste, Dakis Joannou, Jitish Kallat, Barry Keldoulis, Ronald Kiwitt, Deddy Kusuma, Jörg Lederle, Harry Leung, Sylvain Levy, William Lim, Sintha Handajani, Clinton Ng, Johann Nowak, Thomas Olbricht, Laure Raibaut, Julia Rust, Samantha Watson-Wood, Simon Wang, Heiner Wemhöner and Xi Yu for investing their time to be interviewed for this report. Also we want to express our gratitude to Silvia Jaklitsch of Modern Arts Publishing for supporting this project. We would like to thank Prof. Bruno Frey from the University of Zurich for his valuable feedback.

Larry’s List is extremely proud to present the first ART COLLECTOR REPORT 2014 – the most wideranging report on the world’s private contemporary art collectors. The report draws on the largest private contemporary art collector database in the world, created by Larry’s List over the past two years. This database has been analysed in association with the University of Zurich. Well-researched intelligence about the global art market has been transformed not only by the amount of data available, but also by modern developments in data mining, with nearly every aspect of the art market thoroughly researched and anatomised. However, and quite surprisingly, only very little published information has documented the art collector scene, and private collectors remain surprisingly under-researched. Indeed, the limited information available is in inverse proportion to the influence this sector now wields. Private collectors are taking over the role of public institutions in the ownership, preservation, and exhibition of artworks and also in arts education. It is now common for private art collections to rival or even outshine public art collections, and nowhere is this better illustrated than at art auctions. Twenty years ago, an auctioned masterpiece would go either to a public museum in London or to an institution in New York. Today, these works are more likely to find their way into a private collection in London, New York, or maybe even Beijing. To date there are several thousand private contemporary art collectors of note around the globe. Their support and influence are inseparable from the success of auctions and private sales, the careers of artists, and the prosperity of galleries or dealers. Existing statistics merely touch upon these collectors. What is also known is that high-net-worth individuals (HNWIs)1 are seeking a haven from the volatility of money markets and real estate, all leaning towards diversifying their asset portfolio

with art, while the increasing number of individuals in the HNWI class is one driver for the growth in spending. This report fills the gap in this vital area of knowledge about the art market by asking questions such as: Who are these private contemporary art collectors? How many are there? Where do they live? What artists do they collect? What is their business background? How actively are they involved in museums? Firstly, the report investigates the global art collector scene. It analyses private art collectors throughout the world by region, art collection particulars, and the collector’s individual characteristics. Secondly, it looks into regional scenes on a continent level and breaks it down further to a country perspective: the emerging collector scenes in Brazil, China, and India, as well as the more established scenes in Germany and the United States are analysed in this edition. The findings are compared to existing wealth and art market analyses. Thirdly, the report examines the collector scene in the city of Chicago, purposefully selected as a city less recognised than the dominant art hubs of New York and Los Angeles but certainly home to a dynamic collector scene nonetheless. All analyses are complemented by interviews from the respective local art collector scene. The ART COLLECTOR REPORT 2014 underpins the belief in the importance of the private art collector cohort and sets a starting point for providing some transparency on one of the most powerful driving forces in the art market today.

Christoph Noe Dr. Magnus Resch Larry’s List Dr. Lasse Steiner University of Zurich

1 High-net-worth individuals (HNWIs) possess investable assets of US$1 million or more.

TABLE OF CONTENTS 06

THE GLOBAL ART COLLECTOR SCENE

THE REGIONAL AND NATIONAL ART COLLECTOR SCENE

QUOTES FROM COLLECTORS

GLOBAL OUTLOOK

THE GLOBAL ART COLLECTOR SCENE

19 19 21 21 22 22 22 23 23 23 24 24 25 25 26 27 28

GEOGRAPHIC ALLOCATION CONTINENT ALLOCATION TOP 10 COUNTRIES TOP 20 CITIES DEMOGRAPHICS AGE GENDER INDUSTRIAL / BUSINESS BACKGROUND COLLECTION CHARACTERISTICS NUMBER OF ARTWORKS STARTING DATE MEDIA FOCUS TOP 10 ARTISTS ORIGIN OF ARTISTS COLLECTED COMMUNICATION PLATFORMS INSTITUTIONAL INVOLVEMENT PRIVATE MUSEUMS

THE NATIONAL ART COLLECTOR SCENE: THE UNITED STATES

31 31 31 32 33

KEY FINDINGS TOP 5 CITIES TOP 10 ARTISTS INDUSTRY / BUSINESS BACKGROUND PHILANTHROPY – THE ART ENGAGEMENT OF THE US COLLECTOR A CITY IN FOCUS: CHICAGO COLLECTOR INTERVIEW: JACK GUTHMAN

34 36

Thomas Olbricht

THE REGIONAL ART COLLECTOR SCENE: LATIN AMERICA

39 39 39 40 41 41 41

KEY FINDINGS TOP 5 COUNTRIES TOP 5 CITIES THE NATIONAL ART COLLECTOR SCENE: BRAZIL TOP 3 CITIES STARTING DATE TOP 10 ARTISTS

THE REGIONAL ART COLLECTOR SCENE: EUROPE

43 43 44 48 49 50 50 51 52

KEY FINDINGS TOP 10 CITIES COLLECTOR INTERVIEW: SYLVAIN LEVY THE NATIONAL ART COLLECTOR SCENE: GERMANY TOP 5 CITIES STARTING DATE TOP 10 ARTISTS PRIVATE MUSEUMS COLLECTOR INTERVIEW: CHRISTIAN HOSTE

THE REGIONAL ART COLLECTOR SCENE: ASIA

57 57 58 59 59 59 60 62 66 67 67 67 67 68

KEY FINDINGS TOP 10 CITIES THE NATIONAL ART COLLECTOR SCENE: CHINA TOP 5 CITIES STARTING DATE TOP 10 ARTISTS PRIVATE MUSEUMS COLLECTOR INTERVIEW: WILLIAM LIM THE NATIONAL ART COLLECTOR SCENE: INDIA TOP 5 CITIES AGE STARTING DATE TOP 10 ARTISTS MEDIA FOCUS

RESEARCH METHODOLOGY

70 70 70 70 70 71 71 71 71

APPROACH DEFINITION OF AN ART COLLECTOR OVERVIEW OF SOURCES SECONDARY SOURCES PRIMARY SOURCES RESEARCH RESULTS AND ESTABLISHED DATABASE INFORMATION ON THE COLLECTOR INFORMATION ON THE COLLECTION DESCRIPTION OF DATA APPLICATION FOR STATISTICS

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ABOUT LARRY’S LIST

THE GLOBAL ART COLLECTOR SCENE SUMMARY OF KEY FINDINGS

• The total number of market-dominating art collectors is estimated at 8,000 to 10,000 individuals worldwide. • It is assumed that 4,000 to 5,000 of these art collectors are visible in the sense of having a public footprint.

8,000–10,000 25%

• Europe has the largest share of art collectors worldwide with 38%, followed by North America with 28% and Asia with 18%. • The largest art collector base is in the US. With 25% of global collectors, the US scene is larger than the German, British, and Chinese scenes combined. • More than half of the global collector scene is based in the top five countries: US, Germany, United Kingdom, China, and Brazil.

US Scene (Largest Collector Base)

German Scene

British Scene

Chinese Scene

• The biggest collector city is New York with 9% of global collectors. London (6%) and São Paulo (3%) rank second and third. • Nearly a quarter (23%) of all collectors worldwide live in one of five cities: New York, London, São Paulo, Los Angeles, or Paris. • The average age of a collector is 59 years.

#2 London

• 29% of collectors are female, while 71% are men.

#1 New York

• Shared nationality between the collector and the artists collected is a common occurrence.

(Biggest Collector City)

• 12% of the collectors own a private museum accessible to the public.

#3 São Paulo

Average Age

29% Female Male

71%

• Although the US has over three times as many collectors as Germany, Germany has nearly the same number of private museums as the US does. • 12% of the collectors share their collections with the public via online webpages. • 37% of the collectors are actively engaged in public art institutions in the form of advisory boards, committee members, or trustees.

THE REGIONAL AND NATIONAL ART COLLECTOR SCENE SUMMARY OF KEY FINDINGS

Involvement in Public Museums

AMERICA • New York has the highest concentration of art collectors in the US with more than one in three American collectors. • 53% of American collectors are actively involved with a public museum or a public art institution. • Only 8% of the art collectors are based in Latin America, of which Brazil shares more than half at 57%.

53%

American Collectors

EUROPE

(Largest Art Hub in Europe)

#1 London

• Germany is home to the largest number of collectors in Europe, followed by the United Kingdom, France, and Spain.

#3 Berlin

• London is the largest art hub in Europe with 15% of the European collectors residing; it is followed by Paris and Berlin.

#2 Paris

• Germany has a long art collecting heritage. 72% started to collect before 1991.

(Biggest Collector City in Asia)

14%

#1 Beijing

12%

#2 Seoul

ASIA • Beijing is the largest collector city in Asia with a share of 14% of Asian collectors. Seoul (12%) comes second and Singapore (7%) third. • The Chinese collector base is very recent. 45% of the collections were founded between 2001 and 2010, and 5% in the three years since 2010.

#3 Singapore

• India’s art collectors are younger than average. 36% are under 41 years of age, as compared to only 8% of the global collector scene.

QUOTES FROM COLLECTORS “The Chicago community is very committed to the arts and the arts institutions in our city. Many of us sit on boards and advisory committees, but we are also very communal; we support each other’s institutions. This is a very collaborative place.” JACK GUTHMAN, COLLECTOR, CHICAGO

“To own a private collection is personal joy; to show a private collection is a shared joy.”

“I once met an artist who explained me how difficult life can be for artists in Japan. Indeed, though there are many artists and galleries, there is a lack of collectors. I love the arts, and artists, and I don’t want to see them disappear, so I felt personally compelled to remedy this situation by encouraging people in Japan to begin collecting art. I was constantly trying to think of new ways to encourage more people to get involved in the art world and find interest in works of art.” HIROKO ISHINABE, COLLECTOR, TOKYO

ZHENG HAO, COLLECTOR, SHANGHAI

Chicago

Tokyo Shanghai

São Paulo JAKARTA

“Since becoming involved with the art world, I have started to spend more time at various art fairs, art galleries and art panels. With time, I have learned how to appreciate and to select artworks.”

“I’d say that 60% of the works I own are by Indonesian artists, 20% by Chinese and 20% by other nationalities.”

MARCELO SECAF, COLLECTOR, SÃO PAULO

DEDDY KUSUMA, COLLECTOR, JAKARTA

QUOTES FROM COLLECTORS “I think that Chinese collectors will be more focused on contemporary art in the future.”

“I think there is a responsibility (for collectors to assume responsibility by presenting art to the public). Nevertheless a public museum has another assignment then a private collector. A private collector spends his own money whereas a public museum uses public funding to acquire artworks. I, as a private collector, am really looking forward to see the reactions to my exhibition of the institutional curators in Berlin.” HEINER WEMHÖHNER, COLLECTOR, HERFORD

SYLVAIN LEVY, COLLECTOR, PARIS

“As our audience is very young it is essential to discuss with them art through the media they like. Our videos are also directed at them, allowing them to get a deeper understanding or an introduction to what they will see at the Art Centre.” BJÖRN GELDHOF, DEPUTY ARTISTIC DIRECTOR OF THE PINCHUK ART CENTRE, KIEV

HERFORD PARIS

KIEV MUNICH

SANTO TIRSO ATHENS

“I possibly represent what I would call a German collector type: I collect with a strong interest in art rather than extravagant spending.” CHRISTIAN HOSTE, COLLECTOR, MUNICH

“The collection is something intimate, personal, direct. It’s a very personal relationship. I am the only one who knows what the pieces symbolize, what they mean to me. It’s hard for me to explain to others. For example, when some of the artworks from my collection were displayed in exhibitions, I felt uncomfortable. It was as if one became naked under the gaze of others.”

“I don’t think we are an institutional museum. We do not have a program or a fixed curator. When we have a good idea for an exhibition we put it together. In my opinion this is a noninstitutional approach. While a public institution has responsibilities we are totally free.”

IVO MARTINS, COLLECTOR, SANTO TIRSO

DAKIS JOANNOU, COLLECTOR, ATHENS

GLOBAL OUTLOOK 1.

THE NUMBER OF COLLECTORS IN DEVELOPING COUNTRIES WILL INCREASE RAPIDLY IN THE COMING YEARS.

The number of private collectors and the wealth in China is vastly increasing, and the collectors are supporting their own art stars. Since the largest number and the most powerful collectors have come from the US in the past, the most-hyped artist came from the US as well. This situation is likely to change.

As our research shows, in countries such as in India, Brazil, and China, many collections were founded after 2000. Such statistics, the mounting interest in contemporary art, and the growth of HNWI numbers in those regions are just a few indicators for this development.

IN THE NEAR FUTURE, A NUMBER OF NEW PRIVATE MUSEUMS WILL BE OPENING.

As examples like The Broad, the How Museum, and the YUZ Foundation show, there is a trend towards opening collections to the public through private museums. 72% of the private exhibition spaces were founded after 2000. Collectors nowadays incorporate their own museum into their collection strategy.

OWNING A PRIVATE MUSEUM BECOMES INCREASINGLY SUBSTANTIAL, GIVING COLLECTORS A COMPETITIVE ADVANTAGE TO GAIN ACCESS TO TOP ARTWORKS.

IN DEVELOPING COUNTRIES, PRIVATE CONTEMPORARY ART MUSEUMS WILL ASSUME THE RESPONSIBILITY OF PUBLIC MUSEUMS. An underdeveloped institutional landscape in emerging regions allows private collectors to fill that role. The first contemporary museum in China, mostly dedicated to Western art, was opened by a private collector, and so was the second contemporary art museum in South Africa.

COLLECTORS WILL BE MORE CONCENTRATED IN THE REGIONAL ART HUBS. Today the top five collector cities globally account for 24% of all collectors. This number will increase as, firstly, the number of HNWIs in these cities is predicted to grow further and concentrate here. Secondly, it is recognisable that many big collectors move to art centres to be surrounded by a vibrant art scene and “to enter the competition”. Berlin is just one such example of a “collector import city”.

MAJOR ART COLLECTORS WILL FURTHER IMPOSE THEIR OWN UNIQUE CHARACTERISTICS ON THE ART WORLD. Dakis Joannou’s yacht “Guilty” designed by Jeff Koons, François Pinault’s commissioned works by Rudolf Stingel, or Robbie Antonio’s museum only displaying self-portraits of the collector are just a few examples.

COLLECTORS WILL GAIN EVEN MORE INFLUENCE IN PUBLIC MUSEUMS.

THE HUNT FOR INTELLECTUALS WILL STEP UP.

Both artists and galleries prefer to sell major works to (private) museums as they have the opportunity to show the artworks to the public.

COLLECTORS WILL CREATE THE NEW SUPERSTAR ARTISTS WHO WILL COME FROM CHINA.

Many positions in public museums are filled by art collectors who have supported the museums by either donating artworks or giving financial aid. 37% of global collectors are active in one or several public museums. In their role as donors and advisors, they are involved in the acquisition process and therefore decide what kind of artworks the museums will collect and show.

The intellectual aspect of an art piece is one of the key elements in building up its value. Usually it’s generated by academics and critics through art magazines or online blogs. Nowadays, more and more private collectors are indeed willing to hire these acclaimed intellectuals to generate content out of their collection, e.g. curating shows or publishing books. They are in return attracted by the vast resources the private collectors can offer them.

10. THE ART-RELATED SERVICE MARKET WILL GROW.

A growing collector scene, newly built museums, and the increasing value of individual artworks are all factors that will contribute to the further growth of the art-related service sector. This includes services ranging from the obvious insurance needs, to world-class storage facilities (especially in regions where they do not yet exist), to museums’ management competency.

GLOBAL

THE GLOBAL ART COLLECTOR SCENE BERLIN

LONDON 2%

6% SAN FRANCISCO

CHICAGO

Middle East & Africa

Australia

MOSCOW

LOS ANGELES

PARIS

BeiJING

SEOUL

VIENNA

NEW YORK

LISBON 1% Madrid ATHEnS

Buenos Aires

TEL AVIV

S達o Paulo

RANK 1 2 3 4 5 6 7 8 9 10

TOkYO

HONG KONG

SINGAPORE

RANK

Latin America

38%

Asia

Europe

28% North America CONTINENT ALLOCATION OF COLLECTORS GLOBALLY

% OF COLLECTORS

United States Germany United Kingdom China1 Brazil France Spain South Korea Italy India

25% 8% 7% 7% 5% 3% 3% 3% 3% 2%

TOP 10 COUNTRIES GLOBALLY

18%

COUNTRY

United States

Germany

45 27

South Korea China

Italy

15 196

Other 0

100

PRIVATE MUSEUMS GLOBALLY

150

200

1 2 3 4 5 6 7 8 9 10 11 12 12 14 14 16 17 18 19 20

CITY

COUNTRY

New York London S達o Paulo Los Angeles Beijing Paris Berlin Seoul Tel Aviv Chigaco Singapore San Francisco Tokyo Athens Buenos Aires Hong Kong Vienna Lisbon Madrid Moscow

United States United Kingdom Brazil United States China France Germany South Korea Israel United States Singapore United States Japan Greece Argentina China Austria Portugal Spain Russia

TOP 20 CITIES GLOBALLY

1 China is seen as Greater China (including mainland China, Taiwan, Hong Kong SAR and Macau SAR).

% OF COLLECTORS 9% 6% 3% 3% 3% 2% 2% 2% 2% 2% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1%

GLOBAL

THE GLOBAL ART COLLECTOR SCENE What is an art collector? Current literature on the subject provides nothing by way of a helpful universal definition. Asking art market experts, again, will result in varying definitions. To some, art collectors are defined by the size of their collection, while others define them by the amount they spend at auction. Still others consider everyone who shows an interest in art a collector. So if we are going to write about collectors, we should start with our understanding of an art collector. First and foremost: we don’t cover all art collectors. Collectors who form part of this study fulfil four criteria. The collection’s focus must be on contemporary art; the collection must contain a critical number of artworks; the collector must be alive and still active in the art market; and our research approach demands that there must be a public footprint and visibility in regard to his or her collecting activities.1 Based on these criteria, we estimate there are around 4,000 to 5,000 contemporary art collectors worldwide. This report includes most of them, with our database containing 3,111 of these “visible” art collectors at the time of writing. The figure of 4,000 to 5,000, however, represents only those collectors with a public footprint. We estimate that there are an equal number of collectors whose acquisitions are not a matter of public knowledge, and we think of these as “invisible” art collectors. Consequently, we project that private contemporary art collectors – visible and non-visible – total about 8,000 to 10,000 individuals worldwide. The sheer dominance of this global group of art collectors is such that it shapes the market, setting trends, impacting price developments, and influencing public perception and institutions. According to our research, the ratio of visible to invisible collectors differs widely between

1 For further definitions on methodology, see the appendix.

Deddy Kusuma

regions and cultures. In the United States in general, achievements and status symbols are openly displayed, even celebrated, while in countries such as Switzerland, collector behaviour is more discreet. Consequently, the ratio of visible to invisible collectors is presumably higher in the United States than in Switzerland – or, in other words, our database for the United States can be assumed to be far more closer to the total number of US market-dominating collectors than our corresponding figures for Switzerland. The findings on the private art collector scene are based on the data from the 3,111 private contemporary art collectors in our database, which in the further study are referred to as the private contemporary art collectors, art collectors, or simply collectors. Not considered in this study is the group of art purchasers who do not have any clear intention to (consciously) collect art.

GEOGRAPHIC ALLOCATION Given the inherent globalisation of the art market – with German collectors bidding in New York or works by Anselm Kiefer displayed in the Belgravia homes of expatriate Russians – regional observations can invariably be challenged and reinterpreted through a different cut of the data. The private art collectors are geographically categorised in this report by their primary residence, also allowing for a comparison with published data on the location of the world’s HNWIs.

CONTINENT ALLOCATION With some of the richest and most developed countries of the world situated within their borders, North America and Europe are,

GLOBAL

22%

Other

Europe

28% Asia

44%

North America

POST-WAR AND CONTEMPORARY ART MARKET SHARE BY VALUE1

Middle East & Africa

Latin America

30%

27%

Asia-Pacific

Europe

30%

North America GEOGRAPHIC WEALTH ALLOCATION OF HNWIS GLOBALLY2

unsurprisingly, home to the largest number of collectors. Europe has the greatest share of art collectors worldwide with 38% (1,196), followed by North America with 28% (868), whereas 91% of these collectors are based in the US. 18% of global collectors are based in Asia (573), under half the number found in Europe. Of the remainder, only 8% (248) are based in Latin America – overwhelmingly so in Brazil, which is home to 57% of all Latin American collectors. The Middle East and Africa account for 5% (140) and Australia for the remaining 3% (86) of the global collector structure. An important analysis of the art market, though, comes from breaking down the data in a second way: mapping where they live onto a geographical breakdown of where the most money is spent. As an absolute regional figure, the top spender is North America. A market share breakdown by value of contemporary and post-war art shows that North America has 44% of market share, followed by Asia with 28% and Europe with 22%. North America is home to nearly three in ten collectors and is responsible for four dollars of every ten in terms of money spent. But the really big spenders seem to be based in Asia: with only half Europe’s collectors by volume, they spend the same amount of money in absolute terms. Such phenomena can be partly explained by the differences in art market histories and current economic contexts of East and West. The US and particularly European markets have long collecting histories. By contrast, the Asian market is based on rapidly expanding economies and a recently revived collector tradition: put simply, Asian HNWIs are to some extent playing catch-up in the art collecting stakes. There are other potential factors driving the higher spending of Asian collectors in relation

1 TEFAF, Art Market Report, 2014. The market share is based on the top 10 countries by market share. “Other” does also include countries from North America, Asia, and Europe, which are not in the top 10. 2 Capgemini and RBC Wealth Management, 2013.

to other markets. The prices for artworks are higher in Asia, and Chinese artists sell at premium prices, creating a top-heavy Asian collector market characterised by relatively few high-spending collectors (in the context of global collector numbers). The European and US markets, on the other hand, have more middle-sized collectors and small collectors. The Chinese art market can therefore be described as a marketplace for high-end art. Western market share by value, on the other hand, is affected by lower prices with around 80% of the artworks selling for less than US$5,000.1 A comparison of these findings with the geographic distribution of the world’s HNWIs shows a predictable degree of crossover, but it also reveals the drift of HNWIs towards those economies that have shown the most expansion in recent years – and it signposts the predicted direction of art collecting in the years to come. Six in ten HNWIs have their primary residence in either the Asia-Pacific or North America, with the Asia-Pacific shading North America by a whisker at 30% as compared to 30%. A little over a quarter (27%) lives in Europe, while the remainder is divided between Latin America (6%), the Middle East and Africa (7%). Generally, the smaller numbers of HNWIs in Latin America, the Middle East, and Africa presumably correlates with the correspondingly smaller numbers of art collectors.

TOP 10 COUNTRIES A closer country by country focus on the regions reiterates the dominance of the US market and fills out the detail underlying the broad parity of Europe and Asia. A quarter of all collectors are based in the United States. Other countries have only a fraction of the US numbers: Germany, following the US in rank terms,

has only 8% of the world’s collectors, closely followed by the United Kingdom, Brazil, and China. More than half of the entire collector base is located in the top five countries. The dominance of the top five countries by collector numbers is equally striking in terms of market power. In 2013, the top five accounted for an 87% share of the global contemporary art market.2 China’s position is, again, notable, ranking only fourth by number of collectors, but second in market size by value. It is only a matter of time until the number of contemporary art collectors in China reaches a stronger level. Collector Sylvain Levy confirms this assumption by stating that there will also be a shift of interest: “I think that Chinese collectors will be more focused on contemporary art in the future.”3

TOP 20 CITIES An even more specified analysis on a city level continues to illustrate the dominance of the US and Europe in collector terms. Only the US is present more than once in the top 10 cities – specifically, three times – underscoring the importance of the American collector base. New York is the undisputed leader of the top 10 cities, with more collectors than the whole of Germany or the United Kingdom. The only city to even approach New York’s supremacy is London, which, combined with New York, accounts for 15% of the world’s art collectors. The top 10 cities add up to one third of all art collectors worldwide. The remaining two thirds are divided among 600 cities, showing a diverse market that has created a very rich database. São Paulo and Los Angeles, ranked third and fourth, each has 3% of the market by collector: the remainder of the top 10 all have 2%. Beijing is ranked fifth and Paris sixth, followed by its European neighbour Berlin. Asia is represented by only

1 See artprice.com & Art Market Monitor of Artron (AMMA), “The Art market in 2012: The dialogue between East and West”, 2013. 2 TEFAF, Art Market Report, 2014. 3 Larry’s List, Art Collector Interviews, 2013.

GLOBAL

two cities, Beijing and Seoul; Tel Aviv, with 85% of Israeli collectors, is ranked ninth; and the top 10 is completed by Chicago. It is interesting to note that Hong Kong is clearly seen as a trading city in art terms, rather than a centre where art collectors congregate to live; it does not make it onto the list, although it has been one of the biggest art trade cities worldwide in recent years. Also Singapore, which is often considered as an art centre, eludes the top 10 list but takes eleventh place. Cities like San Francisco or Tokyo are in the top 10 HNWI city ranking but not in the top 10 collector cities. By contrast, Berlin, Seoul, and Tel Aviv are the only three cities in the top 10 that do not appear in the top 30 HNWI cities.1

19%

23%

25%

DEMOGRAPHICS

8% 2% < 30

31–40

41–50

51–60

61–70

> 70

AGE BREAKDOWN OF COLLECTORS GLOBALLY

The personal characteristics of art collectors taken as a set of global averages are heavily driven by the established art collecting markets in Europe and the United States. An understanding of this global context sheds an interesting light on the regional variations that emerge below.

AGE

29% Female

Male

71%

GENDER BREAKDOWN OF COLLECTORS GLOBALLY

The average age of a contemporary art collector is 59. A global breakdown by age shows that art collectors are overwhelmingly over 40 (90%), in line with the age profile of HNWIs, 83% of whom are over 45 years of age. 8% of collectors are between 31 and 40 years old; the remaining 2% are 30 years or under.2

GENDER Male collectors, along with male HNWIs, are in the majority: 71% of collectors are men, in line with the 73% proportion of male HNWIs.3

1 Knight Frank, The Wealth Report, 2013. 2 Capgemini & RBC Wealth Management, World Wealth Report, 2011. The 2011 report is considered here since the 2012 and 2013 reports did not contain any gender- and age-specific analyses. 3 Ibid.

INDUSTRY / BUSINESS BACKGROUND Art collectors come from a very diverse set of business backgrounds, with no particular industry standing out as a particularly common source. Globally, most collectors work in the financial services sector (12%), closely followed by media and entertainment (11%). The consumer products sector, the non-profit segment, and health care make up the top five business sectors. The top five account for 43%.1

COLLECTION CHARACTERISTICS

12%

11% 7%

F Se inan rv ci ice al s En M te ed rta ia in & m C ent Pr ons od um uc er ts No npr ofi t He C alt ar h e

TOP 5 BUSINESS SECTORS OF COLLECTORS GLOBAllY

The characteristics of a collection reveal the collector’s vision and collecting behaviour. This part first investigates the year that collectors started collecting. Then it analyses the scale of collection, the genre and medium focus.

NUMBER OF ARTWORKS The number of artworks in an art collection is widely accepted as the most relevant measure of importance. However, the (exact) number of artworks in a collection is the least publicly available information, not least because it is a highly dynamic figure for an active collector. Additionally, a pure numerical figure does not reflect the specifics of the works such as importance or scale; for example, some collectors focus on land art or outside sculptures, which naturally limits the number of pieces that can be collected. Breaking down the data into three fairly broad clusters, just over half of collectors globally (53%) have fewer than 500 artworks, and 19% between 500 and 1,000 artworks. More than one in four collectors own more than 1,000 artworks. A cautious approach should be taken

19%

500 –1000

53% 28% > 1000

NUMBER OF ARTWORKS IN COLLECTIONS GLOBALLY

1 This data may include double entries as many collectors are engaged in more than one business sector.

< 500

GLOBAL

to interpreting these numbers: major collectors tend to communicate the number of artworks they own more frequently than smaller collectors, as they for example have their own museums, publish books on their collection, or show their works on the Internet.

STARTING DATE

24%

23%

17%

16%

12% 6% 1% before 1960

1961– 1970

1971– 1980

1981– 1990

1991– 2000

2001– 2010

after 2010

STARTING DATE OF COLLECTIONS GLOBALLY

83%

The last twenty years of the run-up to the millennium show a clear peak in terms of collection set-ups. Nearly half the collections in the database were started between 1980 and 2000. Collection start dates follow a pattern consistent with the age of art collectors, 90% of whom are over 40. The small number of collections noted in the three years since 2010 suggests that relatively few collectors have recently embarked on a new collection, but obviously it may well be that some collections have not yet acquired sufficient public visibility due to their young nature to be considered according to our methodology. Regional variations on this pattern tend to be linked, whether causally or coincidentally, to regional economic contexts, and significant variations from the global pattern in the Asian markets are discussed in the China and India focus chapters.

MEDIA FOCUS 48% 31% 15%

15%

Pa in tin g Sc ul pt ur e Ph ot og ra ph y In st all at io n C W D o or ra lla ks wi ge on ng , Pa & pe r

By medium, painting is the undisputed favourite. Four out of five collectors have paintings in their collections. Sculpture and photography are also established forms that hold no great surprise as the second and third most popular media, while installation claims a share equal to that of a generalised category incorporating a wide range of paper-based media.

MOST POPULAR MEDIA IN COLLECTIONS GLOBALLY1

1 This data set includes double entries as most of the collectors collect more than one medium.

TOP 10 ARTISTS The top 10 artists ranking specifies artists according to their frequency in collections. Andy Warhol is the most widely collected artist, followed by Pablo Picasso,1 Damien Hirst, and Gerhard Richter. Of the top 10 artists, five are from the US. This table broadly reflects other published data indexing artists according to their exhibition success. Warhol, Picasso, Richter, Sherman, LeWitt, and Beuys are all represented in other top 10 rankings.2 However, Damien Hirst is not necessarily ranked in other top 10 lists, although he seems to be a favourite among collectors with a considerable auction record. The top 10 composition is not surprising in regard to the fact that some of these artists have been present in the art market for decades and therefore are understandably also able to be widely collected while at the same time having compiled a comprehensive collectable body of work.

RANK 1 2 3 4 5 6 7 8 9 10

ARTIST

NATIONALITY

Andy Warhol Pablo Picasso1 Damien Hirst Gerhard Richter Cindy Sherman Sol LeWitt Jeff Koons Roy Lichtenstein Joseph Beuys Joan Miró

American Spanish British German American American American American German Spanish

% OF COLLECTORS

TOP 10 ARTISTS OF COLLECTIONS GLOBALLY

ORIGIN OF ARTISTS COLLECTED American artists are by far the most attractive collectible for art collectors. They appear in 40% of the collections. German artists appear in 24% of collections. British, French, and Chinese artists make up the remainder of the top five. Japanese artist Takashi Murakami is placed in 2% of global collections, contributing to Japan’s eighth-ranked inclusion in this table. Japan’s appearance is further underpinned by strong collector preferences for Asian work in other Asian countries, such as mainland China or Hong Kong. The global popularity of Brazilian artists has shot up, with the international auction average price rising by 55% between 2005 and 2012. This underpins their appearance as the only Latin American nationality in the top 10.3 The Netherlands takes tenth place.

RANK 1 2 3 4 5 6 7 8 9 10

ORIGIN OF ARTIST United States Germany United Kingdom France China Italy Spain Japan Brazil Netherlands

% OF COLLECTORS 40% 24% 22% 18% 14% 11% 11% 10% 8% 6%

MOST POPULAR ORIGIN OF ARTISTS IN COLLECTIONS GLOBALLY1

1 Modern artists not excluded; even so, focus of all analysed collectors is on contemporary. See appendix for methodology. 2 Artfacts.net, Top 100 Artists Ranking, 2014. 3 TEFAF, Art Market Report, 2013. The 2013 report is considered as the 2014 report does not contain data on Latin America.

8% 5% 4% 3% 3% 3% 3% 3% 2% 2%

GLOBAL

Once looking at this analysis on a country level, it becomes obvious that collectors and artists often are of the same nationality. The reasons for this are manifold: sometimes there are economic barriers, such as taxes on the import of international artists into the country; and sometimes collectors want to support artistic development in their own country or just feel “closer” to the regional artistic creations.

COMMUNICATION PLATFORMS A total of 12% of collectors open their collections to the public gaze through an online presence via a webpage. As Sylvain Levy states, one reason for this development is the possibility to present the collection to a wider and more international audience: “When we started collecting Chinese art, we wanted to share it with Chinese people. Since we live in Paris, the only possible way to show our collection to the Chinese public was the Internet.” In addition to the extension of the regional reach, addressing different target groups is another motivator for an online presence, which is outlined by the Deputy Artistic Director of the Pinchuk Art Centre, Björn Geldhof: “… As our audience is very young, it is essential to discuss with them art through the media they like. Our videos are also directed at them, allowing them to get a deeper understanding or an introduction to what they will see at the Art Centre.”2 A number of collections also publish books and catalogues to showcase their collections, e.g. companion publications to exhibitions. In total, 10% of collections have produced one or more publications, which range from monographs accompanying solo shows of artists, overviews of collections, to publications going even beyond the personal collection. Heiner

1 This data set includes double entries as most of the collectors collect artists of more than one origin. 2 Larry’s List, Art Collector Interviews, 2014.

Wemhöner, based in the German city Herford, explains that there is a very simple reason for publishing collection books: “Most parts of my collection are located in a depot, which is why I published three books on my collection.”

INSTITUTIONAL INVOLVEMENT Private art collectors around the world are frequently involved in public art institutions. 37% of art collectors are active – often in multiple roles across several institutions – on advisory boards, as committee members, or as trustees of a public art institution or museum. Commitments of this kind attract over 50% of collectors in the United Kingdom and the US, 43% of German collectors, and 37% of French collectors. An established culture of philanthropy underlies the high levels of institutional involvement by collectors in the United States and the United Kingdom, with estimated donations to art, culture and humanities in the US standing at US$14.44 billion in 2012.1 Asked about his level of participation, the British art collector David Glasser answered: “I’m a ‘Friend’ of lots of institutions, I sit on the Court of a London University, I am on the advisory board of a wonderful quarterly magazine, and am a member of the Art Scholars Livery.”2 Also, Stephanie Dieckvoss, director of Art 14 London, confirms that “… in London many young collectors want to be in the patrons organizations of the museums.”3

50% 50% 43% 37%

United United Germany France Kingdom States INSTITUTIONAL INVOLVEMENT OF COLLECTORS GLOBALLY

1 Lilly Family School of Philanthropy, Giving US, 2013. 2 Larry’s List, Art Collector Interviews, 2013. 3 Larry’s List, Art Collector Interviews, 2014.

GLOBAL

PRIVATE MUSEUMS Today a rising number of art collectors present their collections in private but publically accessible museums. The reasons for founding a private museum can vary: some collectors just want to present their possessions, while others wish to share their passion and collection with the public, while yet others use their collection itself “only” as a backbone for broad activities that range from engagements such as arts education to artists-in-residency programmes. Possible tax reliefs through private exhibition spaces can be another motivator. Art Fairs Australia’s CEO Barry Keldoulis comments the trend on private museums: “In most cases true altruism. These are people who have enjoyed their engagement with contemporary art, and wish to share their enthusiasm with the broader public. …”1 The regional breakdown of privately owned and publicly accessible museums shows that there are 350 private museums located in 46 countries, which means that 12%2 of private art collections are publicly and physically accessible. With 48 venues, the US has the greatest number of private museums. In percentage terms, this equates to 14% of all private museums. Given that 25% of all collectors worldwide are based in the US, the number of private museums seems disproportionately small. The reverse is true in Germany. With 8% of collectors worldwide, Germany has 45 private museums, or 13%. Especially in Germany and the United States, collectors achieve tax privileges through presenting their collections to the public as a non-profit foundation. Dirk Heinrich (Managing Director at AXA Art) remarks that “tax benefits are definitely a consideration when deciding to make an art collection publicly accessible. General statements are hardly

GLOBAL

possible as tax legislation varies significantly between countries.”3 Also, it is worth considering that the distribution of private museums correlates to local limitations: metropolises like New York or Hong Kong offer little (affordable) real estate suitable for private museums, which is arguably one reason for a number of private museums being based in the countryside or in the environs of big cities. Missing from the top 10 is the United Kingdom, with only 2% of global private museums. Overall the top five countries make up 44% of the private museum landscape with the remainder distributed among a further 40 countries. The founding dates of the private museums indicate that only 27% were founded before the millennium. 52% were founded between 2000 and 2010 and 20% after 2010. These numbers reveal the relatively new trend of presenting private collections to the public. Compared to the 1% of art collections founded after 2010, the figure also demonstrates the change in thinking concerning private museums – particularly in emerging markets – where one’s own venue is an incremental part of the collecting approach. Nonetheless, it is important to mention again that the database and resulting statistic only includes museums by living collectors, and therefore the numbers before 1990 and earlier are smaller by the inherent nature of this approach.

1 Larry’s List, Art Collector Interviews, 2014. 2 Based on collections not collectors. See appendix for methodology. 3 Larry’s List, Art Collector Interviews, 2014.

Heiner Wemhöner

UNITED STATES

THE NATIONAL ART COLLECTOR SCENE: THE UNITED STATES

KEY FINDINGS • New York has the highest concentration of art collectors in the United States with more than one in three American collectors. • Nearly one third (29%) of US collections (or parts of) have been shown in a public museum. • 53% of American collectors have an active role in a public museum or public art institution.

Chicago

8% San francisco

New York

34%

Los Angeles

11% RANK 1 2 3 4 5

CITY

Miami

% OF COLLECTORS

New York Los Angeles Chicago San Francisco Miami

34% 11% 8% 5% 4%

TOP 5 CITIES OF COLLECTORS IN THE UNITED STATES

RANK 1 2 3 4 5 6 7 8 9 10

ARTIST

NATIONALITY

% OF COLLECTIONS

GLOBAL RANK

Andy Warhol Pablo Picasso1 Willem de Kooning Ed Ruscha Jasper Johns Cindy Sherman Ellsworth Kelly Roy Lichtenstein Damien Hirst Jeff Koons

American Spanish American/Dutch American American American American American British American

17% 11% 8% 8% 8% 7% 7% 7% 7% 7%

1 2 13 14 18 5 20 8 3 7

TOP 10 ARTISTS OF COLLECTIONS IN THE UNITED STATES2

1 Modern artists are not excluded; even so, focus of all analysed collectors has to be on contemporary. See appendix for methodology. 2 This data set includes double entries as most of the collectors collect more than one artist.

Up to the 1950s, art collecting in the United States might have been defined by popular collecting figures such as Henry Clay Frick or J. Paul Getty. After World War II, artists like Jackson Pollock or Barnett Newman became the new faces of the US art scene. With invitations to international art shows, they grew reputations outside the US. Since then, a completely new art scene which included new collectors was established in New York – and it spread over the whole country. By today, the US has developed as one of the strongest markets in the globe. 25% of global art collectors live in the United States, equalling the sum of its four closest rivals in the country ranking. With a population of more than 3.7 million HNWIs that share 11.7% of wealth distribution globally,1 the US, not surprisingly, also heads the database in terms of HNWIs. With the enthusiasm and money clearly both there to maintain the practice of art collecting the current indications suggest that the strength of the US market will remain.

TOP 5 CITIES New York is far and away the leading city of residence for US art collectors, playing host to 34% of all collectors located in the United States. This is not surprising as New York has been regarded as the dominant player in the art scene where massive number of practicing artists, galleries and auction houses can

be found. Los Angeles ranks the second (11%) while Chicago (8%) and San Francisco (5%) rank followed. These cities are all ranked among the top 15 worldwide for HNWIs.2 Although it falls outside the top five, the association between the active fostering of an art culture and high levels of collector numbers, admittedly supported by considerable per capita wealth, is exemplified by the city of Aspen in Colorado. With its own annual art fair, this small city with a population of around 6,700 ranks a very commendable seventh position.

TOP 10 ARTISTS Andy Warhol is present in 17% of US collections, making him the most collectible artist among US collectors. Cindy Sherman is the sole female artist in the top 10, and the only photographer. Although US preferences do shape global rankings of collectible artists to some extent, a comparison of the United States and global rankings throws up some noticeable differences. Willem De Kooning and Ed Ruscha do not appear in the global top 10 list, but have a very solid collector base in the US, where they are ranked third and fourth. Sol LeWitt, on the other hand, is ranked sixth globally but his absence from the US top 10 suggests that his popularity derives from other countries.

1 Capgemini & RBC Wealth Management, World Wealth Report, 2013. 2 Knight Frank, The Wealth Report, 2013.

UNITED STATES

INDUSTRY / BUSINESS BACKGROUND

21%

13%

12% 7%

Fi Pr nan Ve iva cia nt te l S ur E er e qu vic C it e ap y & s, i En M tal te ed rta ia in & m en No t npr ofi t C Pr ons od um uc er ts

TOP 4 INDUSTRY / BUSINESS BACKGROUND OF COLLECTORS IN THE UNITED STATES1

Media- and entertainment-related background account for 13% of the collectors, while non-profit accounts for 12%, consumer products and real estate each for 7%. The ranking is topped by finance-related industries incl. financial services, private equity and venture capital in which 21% of the collectors work in. On a global average, financial service industries account only for 12%. There might be a link between this 21% of collectors and the interest to also engage in the art market with an eye of investment potentials; maintaining a long association between the two that goes back to avid Wall Street art collectors like J.P. Morgan or Robert Lehman. Today’s prominent hedge funders like Noam Gottesman, Steven A. Cohen, or Joseph DiMenna are notable art collectors, as are distinguished investors Wilbur Ross or Michel David-Weill. With their commercial background, many US collectors have shown themselves to be as surefooted in art investments as they are in finance. Third Point LLC founder Daniel Loeb has amassed a large art collection, including works by Andy Warhol, Jean-Michel Basquiat, Cindy Sherman, and Richard Prince, and has also turned a considerable profit on some of the paintings he has sold along the way. One of the biggest collectors of Martin Kippenberger paintings worldwide, whose works often criticise the abstruse correlation of money and art, Loeb was one of the major lenders to the 2009 Kippenberger exhibition The Problem Perspective at the MOCA. Loeb’s belief in the investment potential of the art market has also extended to buying 9.3% shares of Sotheby’s through Third Point in 2013.2 Other collectors focus their acquisitions on mid-career artists and the medium price segment. Chad Loweth, a former hedge funder,

1 Art and arts-related industry excluded from this ranking. 2 “Sotheby’s counters Loeb with ‘poison pill’ defense”, BBC News, 04/10/2013.

started collecting in 2005 and his collection includes the artists such as Henry Richardson and the Spanish painter Domingo Zapata. Loweth considers that many blue chip artists like Picasso are overvalued and that their prices will eventually drop. He focuses on mid-cap artists, defining his price range as US$30,000 to US$75,000, in the hope that even one of these mid-cap artists becomes an art star, Loweth will at a minimum break even. Loweth has even turned his hand to art promotion, sealing deals at events he himself has staged and consequently increasing the reputation and value of his artists.1

PHILANTHROPY – THE ART ENGAGEMENT OF THE US COLLECTORS Where ownership of the finest works was once the provenance of institutions, private art collectors are now at the forefront of big spending on art. Inevitably, as the laws of supply and demand create price pressure, frequent bidding wars break out among private collectors at auction. While galleries, artists and auction houses are the obvious beneficiaries of this competition, museums, despite being displaced from the ownership of these works, still profit from the zeal of art collectors. Financially outgunned, it has become increasingly difficult for public museums to acquire new works to extend their collections. However, in the US in particular, private individuals may compensate for scarce public funding by working hand-in-hand with public institutions. Many private collectors take their philanthropic commitments very seriously, undertaking active lending programmes and giving frequent donations of single artworks, entire collections, or financial resources. Indeed, many museums in the US would not

1 2 3 4 5

be able to offer the same quality at exhibitions without private collector patronage and donations – 25% of US collections currently work alongside museums either by donating artworks or by placing artworks on permanent loan with museums. In 2013, the Metropolitan Museum of Art was the recipient of US$1 billion2 worth of art – including 78 works by cubist artists Pablo Picasso, Georges Braque, Juan Gris, and Fernand Léger – from the cosmetics tycoon and art collector Leonard Lauder. Equally prominent was the 1999 purchase of Picasso’s Nude on a Black Armchair by fashion businessman Leslie H. Wexner for US$42.1 million, immediately donated to the Wexner Center for the Arts, named for his father Harry L. Wexner.3 In 2012, donations to arts, culture, and humanities totalled an estimated US$14.44 billion, an increase of 7.8% on 2011.4 To award this generosity, museums may rename themselves for their benefactor; visitors seeking the former Miami Art Museum would now find the newly opened Pérez Art Museum, renamed in recognition of cash and art valued at US$40 million from donor Jorge M. Pérez, while a US$28 million dollar donation to Michigan State University led to the creation of the Eli and Edythe Broad Art Museum.5 In the case of artworks on permanent or temporary loan, both parties profit from the agreement. The museum is able to present artworks from private collections in their exhibitions and in return museum provenance confers considerable prestige and consequently increased value onto the artworks. Temporary exhibitions bring similar reciprocal benefits, and according to our research 29% of private US art collections have been the subject of temporary exhibitions at public museums.

“Hamptons Scene: Former SAC Trader Chad Loweth hosts salon”, Bloomberg, 20/8/2013. “A Billion-Dollar Gift Gives the Met a New Perspective (Cubist)”, The New York Times, 9/4/2013. “Wexner Buys Major Picasso At Auction for $45.1 Million”, Wall Street Journal, 26/11/1999. Lilly Family School of Philanthropy, Giving US, 2013. The Eli and Edythe Broad Art Museum is not connected to their own private collection or private museum.

CHICAGO

A CITY IN FOCUS: CHICAGO The combination of galleries, major public museums, a vibrant community of young and emerging artists and an energetic and engaged community of art collectors makes Chicago an exciting city for art in the United States. Its comparatively low rental prices and plentiful warehouse space located all over the city make the city highly interesting for artists and a more affordable option compared to New York or Los Angeles. At the same time Chicago art dealers and gallery owners have worked to make the city more attractive by introducing the Berlin-inspired Chicago Gallery Weekend in 2011 and the Expo Chicago Art Fair in 2012. Economically, Chicago has the well-heeled population prerequisite to any art collector city: 2,615 individuals with net assets of more than US$30 million are based in Chicago, making it fifteenth in the global ranking.1 Chicago is also well served for public institutions. The Art Institute of Chicago, founded in 1879, has a long and venerable exhibiting history. In the top 100 art museums by attendance, it ranks number 31 in 2013.2 It is accompanied by The Museum of Contemporary Art Chicago, founded in 1967, and the Smart Museum of Art, established in 1974, which has a strong focus on contemporary Chicago-based artists. 8% of US collectors are based in Chicago, and while some support the local art scene, many of them focus on internationally renowned artists. Major collectors like Richard Heller or Neil Bluhm collect blue chip artists such as Jeff Koons or Gerhard Richter, acquired mainly through the galleries of the prominent art cities like Los Angeles or New York rather than appearing in the portfolio of Chicago-based galleries.

However, there is also support for local Chicago artists and thus for the surrounding dependent economy of galleries and exhibition spaces. In regard to most represented local artists in Chicago collections Ed Paschke, the only artist in the list who is no longer alive, is the most popular local artist among Chicago-based collectors, appearing in 10% of Chicago collections. The installation artist Theaster Gates appears in 8% of collections and Tony Asset, Angel Otero, and Kerry James Marshall can be found in 6%. Considering the reputation of these renowned contemporary artists, these are quite low numbers. Other artists like the internationally known installation artist Peterman are more widely seen in European collections; only 33% of the collections in which Peterman is included are based in Chicago. Local collectors also do support local artists: Howard Tullman has amassed a collection of more than 1,300 artworks including many emerging regional artists. Sandra and Jack Guthman are also interested in local artists. Collecting since 1969, their collection displays a mixture of young artists from Chicago like Curtis Mann or Melanie Schiff and more international artists like Christopher Wool and Ellsworth Kelly. Even so most of the collectors are not focused on collecting local contemporary Chicagobased artists, 56% of them do support the local art scene through institutional involvement in local art institutions. The local collector Jack Guthman sees this at first hand: “The Chicago community is very committed to the arts and the arts institutions in our city. Many of us sit on boards and advisory committees, but we are also very communal; we support each other’s institutions. This is a very collaborative place.”3

1 Knight Frank, The Wealth Report, 2013. 2 The Art Newspaper, Visitor Figures, 2013. 3 Larry’s List, Art Collector Interview, 2013.

Jack Guthman

CHICAGO

COLLECTOR INTERVIEW Name: Jack Guthman Location: Chicago, United States Collection name: Guthman Collection Interests: Local artists, photography, international artists Artists collected: Xaviera Simmons, Molly Zuckerman-Hartung, Paul Cowan, Mary Mattingly Other: Jack and Sandra Guthman have been collecting art since 1969. They have always focused on young artists, who are in their early career stage.

You and your wife have been collecting since 1969. What was the reason for starting an art collection? What is your motivation right now? When we started collecting, we were not familiar with the art world, but we were intrigued by it. The first work we bought was very “safe”, a lithograph by Picasso. Since then, we have collected for the pure enjoyment of it, for the ideas presented by contemporary artists. Our study states that not many collectors in Chicago are collecting emerging local artists. How would you evaluate the mix in your collection between renowned artists and emerging local artists? We have for many years focused on emerging artists, many of them local. We always look for painters, but much of the more recent work is conceptual photography, again both by local artists and artists from around the globe. I can’t guess as to the numerical mix between local artists and those from elsewhere, but I do know that the number of works by local artists in our collection was reduced when, 10 years ago, we donated the works of 22 local artists to the Harris Theatre for Music and Dance. We wanted the work of local artists to be celebrated in a venue that houses a dozen or so local music and dance companies.

Can you put a name to some emerging artists who should be on our watchlist? Some lesser-known names whose work we have purchased in the last years include Xaviera Simmons, Molly Zuckerman-Hartung, Paul Cowan, Mary Mattingly, Michelle Abeles and Scott Reeder. I should also include the French artist Camille Henrot, although she has now gained substantial attention upon winning the Silver Lion Award at the 55th Venice Biennale. Do you rely on art advisers? How do you make decisions concerning purchases? No, we have never used an adviser…we buy what appeals to us. You are involved in numerous public institutions and societies. Our study states that a high number of Chicago collectors are engaged in the support of public museums and cultural institutions. Do you agree with this finding? What are the reasons for this development? The Chicago community is very committed to the arts and arts institutions in our city. Many of us sit on boards and advisory committees, but we are also very communal; we support each other’s institutions. This is a very collaborative place. The Civic Committee of Expo Chicago,

“WE HAVE NEVER PRESENTED OUR COLLECTION IN A PUBLIC MUSEUM, BUT WE DO LEND WORKS TO SUCH PLACES. ” JACK GUTHMAN

which I chair, is an example: the business, civic and arts communities in Chicago come together in support of an arts event which is not only of note in its own right, but also an important indicator of the city’s stature in the global world of art. Have you ever presented your art collection publicly? We have never presented our collection in a public museum, but we do lend works to such places. We frequently open our home to museum groups, almost always in response to requests from the curators of our local institutions. Do you think that art collectors have to assume responsibility in the art world and support art institutions as well as showing their collections to the public? I don’t like the word “responsibility”. These are individual choices. In our case, if we are asked and can do so, we try to respond positively to institutions. If they ask us for help – for example, to loan a work or to permit an out of town museum group to visit our home – we try to help.

LATIN AMERICA

THE REGIONAL ART COLLECTOR SCENE: LATIN AMERICA

KEY FINDINGS • 8% of the global collector base is located in Latin America. • 57% of Latin America’s collectors are based in Brazil. • The small island territory of Puerto Rico is ranked fourth by number of collectors in Latin America with 7%. • The Brazilian market is a late starter: 27% of the collections were founded after 2001.

Mexico City

San Juan

Rio De Janeiro

São Paulo

36%

Buenos Aires

16%

RANK

COUNTRY

% OF COLLECTORS

RANK

1 2 3 4 5

Brazil Argentina Mexico Puerto Rico Chile

57% 17% 8% 7% 3%

1 2 3 4 5

TOP 5 COUNTRIES OF COLLECTORS IN LATIN AMERICA

CITY

COUNTRY

% OF COLLECTORS

São Paulo Buenos Aires Rio de Janeiro Mexico City San Juan

Brazil Argentina Brazil Mexico Puerto Rico

36% 16% 11% 4% 4%

TOP 5 CITIES OF COLLECTORS IN LATIN AMERICA

11%

The Latin American collectors were neither in the focus of the international gallery enterprises that opened branches from China to India nor did international auction houses set foot there for the past decades. But as the Latin American economy continues to grow, and the region’s number of HNWIs increases, Latin America is now beginning to claim a share of the spotlight. The 8% of global art collectors in Latin America seems a small market by comparison with Europe or North America. Nonetheless, in Latin America as in other emerging countries “it is a very visible phenomenon that many professionals in emerging countries start to collect art. There is definitely a correlation between the wealth of a nation and the number of art collectors in the country. I think that the “boom” will continue in the future”, as stated by Jörg Lederle, Head of Post-War and Contemporary at Koller Auctions.1

TOP 5 COUNTRIES By far the greatest number of Latin American art collectors lives in Brazil with 57%. A further 17% are based in Argentina, and 8% in Mexico. Interestingly, the small island territory Puerto Rico has 7% of collectors, the fourth biggest share of collectors in Latin America,

1 Larry’s List, Art Collector Interviews, 2014. 2 Knight Frank, The Wealth Report, 2013.

with both local and US artists appearing in their collections.

TOP 5 CITIES São Paulo is the leading art collector city in Latin America by a wide margin. With 36% of Latin American collectors, collectors based in the Brazilian megacity outnumber the whole of Argentina and Mexico combined. Buenos Aires and Rio de Janeiro are ranked second and third; none of the remaining top 10 exceeds 4% of Latin American collectors. In Brazil and Mexico, multiple art collector centres have developed, with Brazil appearing twice in the city ranking. From this list, only São Paulo and Rio de Janeiro can be cross-referenced to the top 30 HNWI cities.2

BRAZIL

THE NATIONAL ART COLLECTOR SCENE: BRAZIL

27% 19%

15%

Rio De Janeiro

19%

15%

São Paulo

63%

0% before 1960

1961– 1970

1971– 1980

1981– 1990

1991– 2000

2001– 2010

after 2010

Porto Alegre

STARTING DATE OF COLLECTIONS IN BRAZIL

RANK 1 2 3

CITY

% OF COLLECTORS

São Paulo Rio de Janeiro Porto Alegre

63% 19% 5%

TOP 3 CITIES OF COLLECTORS IN BRAZIL

RANK 1 2 3 4 5 6 7 8 9 10

ARTIST

NATIONALITY

Beatriz Milhazes Alfredo Volpi Mira Schendel Antônio Dias Hélio Oiticica Lygia Clark Amílcar de Castro Alex Flemming Daniel Senise Emiliano Di Cavalcanti

Brazilian Brazilian Brazilian Brazilian Brazilian Brazilian Brazilian Brazilian Brazilian Brazilian

The Brazilian economy is growing fast and taking the Brazilian contemporary art market with it. The art market profits from the wealth of 165,000 HNWIs ranking it eleventh in the world.1 Currently, 57% of Latin American art collectors are situated in Brazil, placing it fifth behind the US, Germany, United Kingdom and China in the global country collector ranking. Brazil has a relatively small share by value of the art market at around 1%, estimated at US$455 million in 2012. Although these numbers do not compete with other big markets, the Brazilian trajectory is set firmly upwards. Since 2001, imports have grown by 500%, while increasing interest in Brazilian artists on the global art market contributed to a rise in exports of an impressive 1,950% to 2011.2

TOP 3 CITIES The Brazilian collector scene is heavily weighted towards one dominant and two satellite hubs. São Paulo has 63% of Brazil’s collectors, making it the leading Latin American centre as well as the dominant Brazilian city for art. Rio de Janeiro has a further 19% and Porto Alegre 5%. The remaining collectors are scattered across the country.

STARTING DATE % OF COLLECTIONS1

GLOBAL RANK

10% 10% 10% 9% 9% 9% 9% 9% 8% 8%

177 230 228 276 229 248 335 426 431 332

TOP 10 ARTISTS OF COLLECTIONS IN BRAZIL

1 This data set includes double entries as most of the collectors collect more than one artist.

The Brazilian art collector market is young by comparison with more mature scenes, although the 19% of collections started prior to 1960 suggests a period of historic activity. From 1971 to 2000 there was a rather continuous establishment of new collections. After 2001 these numbers increased vastly, which shows the trend towards collecting art in Brazil: 27% of collections were founded between 2001 and 2010, a strong increase on the three decades that preceded the millennium. Marcelo Secaf, a São Paulo-based

1 2 3 4

art collector, described how collecting has gradually changed his engagement with art: “Since becoming involved with the art world, I have started to spend more time at various art fairs, art galleries and art panels. With time, I have learned how to appreciate and to select artworks.”3

TOP 10 ARTISTS Beatriz Milhazes is the artist most collected by Brazilian collectors, and worldwide ranks 177th position. The highly successful expatriate Brazilian artist Vik Muniz does not appear in the top 10 collectibles for Brazilian collectors; only 13% of collectors with a Muniz are situated in Brazil, leaving him outside the top 10 artists for Brazil-based collectors despite being globally ranked 38. Muniz is an exemplar of an artist born and raised in Brazil who has gone on to be integrated in the wider global art market being presented by renowned US galleries. Brazilian collectors have an exceptionally strong focus on collecting artists from their same nationality with 98% collecting artworks by local artists. Artists collected from outside Brazil, like the US (8%), Argentina (6%), Japan or Germany (both 5%) form only a small minority. Among the top 30 most collected artists in Brazil, not even one is foreign. This apparent lack of interest in international artists in Brazilian collections, however, may not be to do with cultural barriers so much as economic: import taxes imposed by the Brazilian government on international art create a considerable disincentive, as taxes levied on the original selling price for importing the artwork into Brazil are 36% and VAT.47

Capgemini & RBC Wealth Management, World Wealth Report, 2013. TEFAF, Art Market Report, 2013. The 2013 report is considered as the 2014 report does not contain data on Latin America. Larry’s List, Art Collector Interviews, 2013. “Inside Brazil: Young and Vibrant”, retrieved from http://www.theguardian.com/inside-brazil/young-and-vibrant.

EUROPE

THE REGIONAL ART COLLECTOR SCENE: EUROPE

KEY FINDINGS • Germany has the largest number of collectors in Europe. The United Kingdom, France, and Spain are also major collector countries. • London has more art collectors than any other city in Europe and more than its two nearest competitors, Paris and Berlin, combined. • German collectors tend to have long histories and well-established collections: 72% of the collections were started before 1991.

London Düsseldorf

15%

Berlin

Dublin

Moscow

Vienna

Paris

Athens

LisboNMadrid

3% 3%

RANK

RANK 1 2 3 4 5

COUNTRY Germany UK France Spain Italy

% OF COLLECTORS 21% 19% 8% 7% 7%

TOP 5 COUNTRIES OF COLLECTORS IN EUROPE

1 2 3 4 5 6 7 8 9 10

CITY

COUNTRY

London Paris Berlin Athens Vienna Lisbon Madrid Moscow Düsseldorf Dublin

United Kingdom France Gemany Greece Austria Portugal Spain Russia Germany Ireland

% OF COLLECTORS

TOP 10 CITIES OF COLLECTORS IN EUROPE

15% 6% 6% 3% 3% 3% 3% 3% 2% 2%

Since the fifteenth century, when artists found patronage among the central European aristocracy, Europe has had an established tradition of collecting art. With the opening of the market in the Netherlands in the seventeenth century, interest spread. The first auction houses began to emerge, including the Dorotheum in Vienna and Sotheby’s and Christie’s in London. The salons in Paris – the precursors of today’s modern art galleries – fostered a growing cultural and commercial interest in art. The supremacy of the European art market continued till the late twentieth century. Today the market in Europe still plays a significant role with a global post-war and contemporary art market share by value of 22%, which however lags the Asian (28%) and the North American (44%).1 Nonetheless, Europe dominates the individual collector rankings, with more than 38% of the global collectors based in Europe.

TOP 10 CITIES Europe has several art hubs. London dominates with 15% of European collectors, over twice as many as its nearest competitors Paris or Berlin. Together the top 10 cities in Europe account for nearly 50% of the European collector base.

1 TEFAF, Art Market Report, 2013. 2 Knight Frank, The Wealth Report, 2013. 3 Larry’s List, Art Collector Interviews, 2014.

There is also a noticeable lack of cross-over between the top 10 cities for European art collectors and the corresponding list for HNWIs. Only London, Paris and Düsseldorf appear in the top 30 HNWI ranking, while Berlin, Athens, Vienna, Lisbon, Madrid, Moscow, and Dublin may be thriving art hubs but are not home to HNWIs in great numbers.2 Interestingly, Zurich does not appear in the top 10 list even if it is commonly recognized as an art collector hub. The explanation for the absence of Zurich in the top list along with other Swiss cities can be certainly seen in the overall small population of those places. Jörg Lederle adds another reasoning: “If you look at the mentality of the Swiss, it is noticeable that Switzerland is a very discrete country, not only in terms of collecting but also in terms of banking. Compared to Switzerland the collectors in Germany or the United Kingdom are much more visible.”3

EUROPE

COLLECTOR INTERVIEW Name: Sylvain Levy Location: Paris, France Collection name: DSL Collection (Dominique and Sylvain Levy) Interests: Chinese contemporary artists, emerging Chinese contemporary artists Artists collected: Duan Jianyu, Sun Yuan & Peng Yu, Xu Zhen, Zhang Peili Other: The DSL Collection has pioneered the presentation of art through new media channels, with its works accessible through an iPad app, an online museum and 3D films.

How did you start collecting? When did you choose to focus on Chinese artists and what was the reason? I started by collecting design pieces. At one point, we wanted to buy a Marc Newson piece and the dealer told us that there is a waiting list for his work. It made us realise that we didnâ&#x20AC;&#x2122;t want to collect design pieces any more since collecting is not about being on waiting lists. Starting a collection of Chinese artists was really more accident than choice. We travelled to China in 2006 and we were shocked by the scale, the energy and the speed of the Chinese culture. The art dealer Lorenz Helbling was our first contact. Soon after leaving Shanghai for Paris, we decided to collect Chinese contemporary art because art is always the reflection of society and of the times. The first piece we bought was a work by Ding Yi. What is a collector for you? Being a collector for us is about three things. Firstly, the collector is a creator. He creates something that has a body in the artworks and something that has a soul in the personality of the collector. Secondly, he is a connoisseur who enjoys spending time with his passion and enjoys the process of collecting. Thirdly, a collection is like a start-up: you have to enjoy the rough and tumble aspect of entrepreneur-

ship to be a successful collector: You do not find flowers on paved roads. Prices for contemporary Chinese art have shot up in recent years. How will prices develop in the next ten years? Does this increase affect your approach to collecting? We always had our own agenda. Our collection is not intended to be a complete collection. We are writing a story and the artworks are the letters, even if the artists are not important. Mostly, Chinese collectors focus on collecting paintings. We are collecting installations, which gives us the opportunity to buy the best Chinese artists at affordable prices. If we were to focus on paintings, it would be much more difficult: the wealth of Chinese collectors gives them access to the best works. Fairs such as Art Basel HK could also redirect the interests of Chinese collectors from their current strong focus on Chinese artists. Do you think this will change in the coming years? Chinese collectors will collect Western art in the future because it is a good investment, because they like it and because artists like Bacon are trophy art. That said, I do not think that the majority of Chinese collectors will ever really focus on Western art. We do have to

Dominique and Sylvain Levy

EUROPE

“WE ALWAYS HAD OUR OWN AGENDA. OUR COLLECTION IS NOT INTENDED TO BE A COMPLETE COLLECTION. ” SYLVAIN LEVY

ask: why should they? If you look at the number of Western collectors of Chinese art, there are some, but it’s not a huge number. The question I am asking myself is, will there ever be a major museum with a Western art collection in China? You know Chinese as well as Western collectors: where do you see the major characteristics in their collection behavior? I have to emphasise that I am not an expert on China but I have obviously made some observations. Firstly, at the moment, many Chinese collectors collect with an eye to investment, while European collectors grew up with collecting and have other motivations. Secondly, very few Chinese collectors to date have engaged with the idea of communicating about their collection, for example by sharing their collection with the public. With a few exceptions, such as Budi Tek or Wang Wei, most of the collectors stay anonymous. Showing a collection is always interesting, but even more interesting is the process of trying to inspire people with your collection. Thirdly, relationships are crucial, or “guanxi” as it is called in Chinese. This is a very unusual model. Many people collect because their friends tell them to buy the works because they are friends with the artists.

Moreover many Chinese collectors do not understand contemporary art. For many of them, art is linked to traditional Chinese ink painting. When I held a short presentation for Sotheby’s in China, businessmen came to me and said that they do not understand contemporary art. I think that even if someone does not understand contemporary art he has to accept the fact that it is the art of today. You should collect contemporary art, was my advice, because you can collect the heritage of future generations today. I think that Chinese collectors will be more focused on contemporary art in the future. Do you work with art advisers? What are your sources for getting information, building your expertise, deciding on artists? I am very influenced by a number of people like Lorenz Helbling, Leo Xu, Yang Jiechang, Martina Köppel-Yang and Zhou Tiehai. But I don`t have an art adviser in particular. If you really want to collect Chinese art you have to do a lot of homework. Every morning from 6:00 till 10:00, I spend my time researching and discussing Chinese art with other people. Despite all this collaboration, at the end of the day we decide, on our own, which artworks we are buying.

Many collectors present their collection in a museum. Why did you choose to present your collection on the internet? First of all, nothing will ever replace viewing an artwork in flesh and blood. However, when we started collecting Chinese art we wanted to share it with Chinese people. Since we live in Paris, the only possible way to show our collection to the Chinese public was the internet. The more responses we got, the more we felt confident that presenting art on the internet can be a new experience to the audience, and we really wanted to try to continue that process of bringing people and art together in a different way. We are also promoting our collection via social media networks and we are very successful with this approach and people respond in positive way to the “DSL Touch”. In this regard we rank second regarding private art collectors. We have 30,000 – 60,000 visitors on our website per week and we just launched a Spanish-language newsletter. On LinkedIn we were endorsed 4,000 times for “artwork” and over 600 times for “art”. Moreover we developed an Ipad app and are also using new technologies like 3D. We created a 20 minute film, in which we recreated the Grand Palais, and present our collection in 3D. In the beginning we had some technical

limitations but with better technology there are more and more possibilities. How will you further promote your collection in the future? Today, digital is the creative convergence of digital arts, science, technology and business for human expression, communication, social interaction and education To reach this goal in terms of creative convergence, we have to take into account that we are in the post internet age. It means that we have to use new digital tools such as social networks, contents designed for tablets and smartphones and viral applications. We are going to be actively present on WhatsApp and WeChat. It is important to remember that our ultimate goal is to create a sustainable identity for the collection within the international art world, and a persona that is truly distinctive and not tied to its founding members Which art collection do you admire the most besides your own? I admire people like Guan Yi, Herbert Vogel, Antoine de Galbert or Harald Falckenberg and there are many other collectors who are interesting and inspiring.

GERMANY

THE NATIONAL ART COLLECTOR SCENE: GERMANY

HAMBURG

9% Düsseldorf

10%

BERLIN

28%

COLOGNE

MUNICH

RANK

CITY

% OF COLLECTORS

1 2 3 4 5

Berlin Düsseldorf Hamburg Cologne Munich

28% 10% 9% 7% 5%

TOP 5 CITIES OF COLLECTORS IN GERMANY

1 2 3 4 5 6 7 8 9 10

ARTIST

NATIONALITY

Sigmar Polke Joseph Beuys Gerhard Richter Andy Warhol Georg Baselitz Imi Knoebel Günther Uecker Wolfgang Tillmans Gotthard Graubner A. R. Penck

German German German American German German German German German German

% OF COLLECTIONS

GLOBAL RANK

15% 14% 13% 11% 11% 10% 9% 8% 7% 7%

12 9 4 1 40 83 127 46 166 107

TOP 10 ARTISTS OF COLLECTIONS IN GERMANY

Germany is home to one of the most diverse and rich cultural landscapes in the world, supported by a long-standing tradition of Kunstvereine, Kunsthallen, museums, and arts societies. From an interest broadly confined to the aristocracy in the seventeenth and eighteenth centuries, Kunstvereine were then founded at the beginning of the nineteenth century, giving opportunities for what we might now recognise as cultural networking. As the twentieth century unfolded, private collections emerged in art centres like Hamburg, Dresden, Berlin and Munich. Today’s generation of German collectors includes globally recognised art collectors such as Ingvild Goetz, Udo Brandhorst, Thomas Olbricht, and Karen and Christian Boros. With 8% of global collectors located in Germany, the country has the second biggest number of collectors worldwide. Despite the strength of German collector numbers, the contemporary art market share by value is relatively small. This is to some extent a consequence of the lower prices achieved for art generally in Germany: while France, with a comparable market and collector structure, achieves an average auction equivalent of €15,024, and the global average is €33,333, the average auction price per single work in Germany is only €6,846. However, these figures should not be over-interpreted, as none of the big auction houses has its headquarters in Germany and German collectors therefore also buy in London or New York, which is also reflected in market share for these cities – a paradigm of the limitations of geographic analysis. The Munich-based collector Christian Hoste agrees that collectors from countries like the US or China tend to outspend German collectors: “German collectors are not minded to pay extremely high prices for artworks, nor are

1 Larry’s List, Art Collector Interviews, 2013 2 Larry’s List, Art Collector Interviews, 2013.

they necessarily quick to follow trends. Many collectors in Germany tend to buy younger artists and hold on to them. I possibly represent what I would call a German collector type: I collect with a strong interest in art rather than extravagant spending.”1

TOP 5 CITIES The third European city in terms of art collectors, Berlin, leads the German city ranking by number of collectors with 28%. A large number of private museums have sprung up in Berlin over recent years: Axel Haubrok opened the Sammlung Haubrok in 2005, Christian and Karen Boros the Sammlung Boros in 2008 and Thomas Olbricht opened his Me Collectors Room in 2010. None of these collectors are of Berlin origin, which shows the trend of Berlin being a “collector import city”. Düsseldorf, which comes ninth in the European ranking, comes second, and is followed by Hamburg and Cologne. Interestingly Munich is home to only 5% of the collectors in Germany. Christian Hoste explains these numbers: “Munich is a bit different. There is a vast number of collectors but they are not so public in their appearance – it all goes on much more behind closed doors. Munich is more conservative.”2 Overall 59% of German collectors are based in the top five cities, leaving 41% in smaller cities spread over the rest of the country.

GERMANY

STARTING DATE The starting dates of German collections clearly show the extent of Germany’s deep collecting roots. 72% of German collectors started to collect art before 1991 – which also goes along with a rather elderly age structure – significantly in excess of the global equivalent of 59%. Only 9% of German collections were founded between 2001 and 2010.

TOP 10 ARTISTS

28% 18%

18%

17%

9% 2%

before 1960

1961– 1970

1971– 1980

1981– 1990

1991– 2000

2001– 2010

after 2010

STARTING DATE OF COLLECTIONS IN GERMANY

1 TEFAF, Art Market Report, 2014. 2 Art Price, The Art Market in 2013.

Of the ten most collected artists by German collectors, nine are German themselves, and foremost among them is Sigmar Polke. As an artist whose quality has been acknowledged for decades, his market value is stable and his oeuvre offers collectors the opportunity to acquire works from affordable editions to seven-digit sums for major paintings, making him the perfect collectible for German collectors. Prices achieved for Polke’s work range from the multiple Leave the Lab and Enter the Office, which sold for US$4,000 in 2012, to Strand, which sold for £2.7 million in 2007. Polke is also a globally favoured artist, coming thirteenth in the worldwide rankings. Gerhard Richter, who is the highest ranked German artist in the world at number four, comes third to second placed Joseph Beuys in German rankings. Richter also was the seventh highest ranked artist globally by auction turnover in 2013 with a volume of sales of US$165.9 million.2 Thomas Olbricht, who is the world’s largest collector of Gerhard Richter editions, comments on the way he handles the enormous prices for Richter: “I am such a passionate collector of his editions and I am in the happy position that he lets me know whenever there are new editions available to complete my collection constantly. The works you can get on

the secondary market are out of my budget.” The only non-German artist in the ranking is Andy Warhol, in fourth place. The other ranks in the top 10 are taken by Georg Baselitz, abstract artist Imi Knoebel, Zero artist Günther Uecker, Wolfgang Tillmans (the only photographer in the list), Gotthard Graubner, and A.R. Penck.

PRIVATE MUSEUMS As part of their long collecting culture, German collectors are very open to presenting their collections publicly – in their own museums or exhibition spaces. Overall there are 45 private art institutions situated in Germany – only three fewer than in the US, despite having only 32% of the American collector numbers. Nine of these are in Berlin, underscoring Berlin’s superiority as the biggest collector city in Germany. Except Berlin there is no other city in Germany with a further significant density of private museums. However what can be noted is that a number of the other private museums are not located within major cities but rather on the outskirt of larger cities or even in the countryside. The museum of the Sammlung Klein (Collection Klein) which is located in the village of Eberdingen-Nussdorf, about 30km outside Stuttgart, or the Kunstraum Grässlin (Art Space Grässlin) in the village of St. Georgen, deep in the heart of the Black Forrest, demonstrate examples for such remote set-up.

Collectorss

Private Museums 45 Germany

250

48 US

768

800

600

400

200

NUMBER OF COLLECTORS VS NUMBER OF PRIVATE MUSEUMS

GERMANY

COLLECTOR INTERVIEW Name: Christian Hoste Location: Munich, Germany Collection name: / Interests: Street art / urban art, emgering artists Artists collected: Banksy, Henrik Eiben, Mirko Reisser (DAIM), Stefan Strumbel, Zhou Yilun Other: Christian Hoste has collected street art for over 10 years. His philosophy is to focus on young and emerging artists.

You are collecting street art / urban art and emerging artists, which is unusual for a German collector. When did you choose to focus on this artistic movement, and why? I actually started collecting as a young adult. At school, my art teacher Werner Pokorny – a practising artist himself – got me very interested in the arts. When I was 18, I founded an art club together with some friends. It was completely self-motivated, with no parental or any other adult involvement. The idea of the art club was to show and promote local artists working in the Rhine-Neckar-Delta, mostly graduates from the local universities. The approach was very contemporary. As time passed, I learned more and more about contemporary art and gradually I took off the posters from the wall and replaced them with lithographs by artists. The eye-opener for the movement I am now involved in was a visit to the collective “Getting Up” about 10 years ago in Hamburg. My collector friend Rik Reinking told me about the community. They set the show in a very unusual bunker-style studio. It was interesting to see not only the works themselves, but also the way the artists worked – with seriousness and sustainability.

from other collectors by collecting “niche movements”. Is that one reason for collecting urban art? I never looked for a niche and also never wanted to position myself as a collector. It also took a long time for me to develop a self-image as a collector. It really only happened in the middle of the 2000s. You really start to feel like a collector when you start paying for storage of the artworks. Or, as the saying goes, “collecting starts where the wall ends”.

Many collectors try to separate themselves

How important is it for you to have a direct

Your collection includes pieces by Banksy. What do you think about the development of his prices during the last few years? There has been an obvious rise in prices for street art over recent years. My response to high prices is to continue to look for artists of high quality who are still moderately priced. My philosophy is not to collect established but rather emerging and upcoming artists. Do you rely on art advisers? How do you make your selection? It is a combination of meeting artists, visiting galleries and talking to consultants. But ultimately, it comes down to viewing a lot. Collecting means selecting.

“I NEVER LOOKED FOR A NICHE AND ALSO NEVER WANTED TO POSITION MYSELF AS A COLLECTOR.” CHRISTIAN HOSTE

and personal connection with the artists you are collecting and why? I personally like to have a connection – which is not possible with all artists I collect or like though. I like the different mindset and other models and roles the artists have. I appreciate exchanges and interactions. You are based in Munich. Our database states that only 5% of German collectors are based in Munich compared to a third in Berlin. Would you have realised this from your practical experience as a collector? Most collectors who showcase their collections in Berlin do not come from Berlin: it’s a “collector import city”. Munich is a bit different. There is a vast number of collectors but they are not so public in their appearance – it all goes on much more behind closed doors. Munich is more conservative. Nevertheless, in Munich you will find a number of art institutions with world-class art collections and particularly top corporate art collections such as Munich RE. I think it is good to house your private collection in Berlin if you consider it on a macroeconomic level. It is great that Germany has an art centre, a hub not only for the artists but also for people from other creative disciplines. Creativity needs reasonably priced space,

something that Munich cannot offer compared to Berlin. Berlin is very unique from that point of view. According to our research, in Germany three-quarters of the major collections were established before 1991. When did you start collecting? I bought my first work when I was 18 years old, which was 28 years ago. Where do you see the major characteristics in the behavior of German collectors? What are the differences to other collector landscapes, e.g. the US? In emerging countries we see demonstrative luxury, whereas art belongs to another dimension. However German collectors do not mind paying extremely high prices for artworks, nor are they necessarily quick in following trends. Many collectors in Germany tend to buy younger artists and hold on to them. I possibly represent what I would call a German collector type: I collect with a strong interest in art rather than extravagant spending. Have you ever presented parts of your collection to the public? Yes, I have shown parts of my collection in exhibitions in Paris and Bremen, and some

GERMANY

“IT’S NOT ABOUT ADDING VALUE. MY MAIN MOTIVATION IS TO INTERACT WITH INTERESTING AND EXCITING PEOPLE.” CHRISTIAN HOSTE

works are also on permanent loan at the University of Mannheim from which I graduated. Some parts of my collection are also on display in my office space. I believe such display is rather typical for my type of collection. What was your intention in showing your collection? Was it to add value to the collection and the works? No, it’s not about adding value. My main motivation is to interact with interesting and exciting people. I also get really interesting opinions on my collection. The feedback comes from people with very diverse backgrounds and it is very valuable to hear how they react to it. Art is also a great vehicle for opening discussions about a number of other major topics, so exhibiting really goes beyond just the art itself. Which art collection do you admire most besides your own? I recently met the Stuttgart-based collectors Ute and Rudolf Scharpff. For me they represent a typical example of a German collectors: they bought emerging artists they liked early and they believed in them. In time, they sold works by artists who had moved into a more established position and used the proceeds to again support young artists. They also have a great collection of

Christian Hoste

street artists they displayed at the Kunstmuseum Stuttgart. Secondly, I would name Rik Reinking, as he opened my eyes to street art. And thirdly, I would name the Lafrenz Collection. I really like a lot of the works in that collection, and their collecting taste is very much aligned with mine. How do you foresee the development of collecting contemporary art? It’s difficult to answer. The market is kind of crazy. The old-school collectors in Germany and Europe will lose influence in the market, while speculative and “lifestyle” collectors will gain power. The idea of sharing art is becoming more popular. New platforms will come up in both online and offline media. Other forms of networks in the art market are on their way as well. Where do you usually purchase art from? Both galleries and fairs. And also auctions. Pretty much in a similar share. Which fairs are you visiting? Art Basel in Basel and Miami and the satellite fairs, such as Pulse, are must-visits. In Germany I usually visit Art Cologne, Stroke and some “smaller” fairs in particular field of urban art. These fairs are a good opportunity to obtain an overview efficiently.

ASIA

THE REGIONAL ART COLLECTOR SCENE: ASIA

KEY FINDINGS • 18% of the global collector scene is based in Asia, more than one third of it is situated in China. • Beijing is home to the largest collector scene in Asia with 14% of Asian collectors. Seoul comes second with 12%, and Singapore is ranked third with 7%.

Beijing

14%

Seoul

12%

Hong Kong

Kuala Lumpur

Jakarta

RANK 1 2 3 4 5 6 7 8 9 10

CITY

COUNTRY

% OF COLLECTORS

Beijing Seoul Singapore Tokyo Hong Kong Taipei Mumbai Jakarta Kuala Lumpur Shanghai

China South Korea Singapore Japan Hong Kong Taiwan India Indonesia Malaysia China

14% 12% 7% 7% 6% 5% 5% 4% 4% 4%

Taipei

Singapore

• Indian art collectors are younger than average. 36% are under 41 years old.

ToKYo

Shanghai

Mumbai

• The Chinese collector base emerged only recently. 45% of Chinese collections were founded between 2001 and 2010, with a further 5% of the collections established between 2010 and 2013.

The artistic styles, traditions and output of Asia differ widely from country to country, with a range of financial situations, economic environments, and market structures to match. This makes it difficult to consider the Asian market as a whole. Over the years, several art-market centres have developed or more recently emerged in China, Japan, India, Indonesia, and South Korea, each with their own regional characteristics. Nowadays, the Asian collector scene is being drawn into the wider art world; auction houses and galleries are introducing globally renowned artists to the Asian markets, and international art fairs have been established, such as Art Basel Hong Kong. With galleries from 35 different countries, Art Basel targets dealers and collectors from Asia and the rest of the world alike. There exists a number of collectors in Asia who are not necessarily wedded to only their own national artists. Indonesian collector Deddy Kusuma, on the split of his collection, has never counted – “but I’d say that 60% of the works I own are by Indonesian artists, 20% by Chinese and 20% others.”1 The dynamic in the Asian collector structure are partly rooted in the wider economic context of Asia’s new-found wealth. In 2011 HNWIs located in the Asia-Pacific region

numerically surpassed North America for the first time. Although North America reclaimed the position in 2012, the Asia-Pacific HNWI population grew by 9.4% to 3.68 million.2 The opportunities for continued growth in the art market are clear.

TOP 10 CITIES Beijing is the leading Asian city with 14% of all Asian collectors. With Beijing, Shanghai, Hong Kong, and Taipei, Greater China is represented four times in the Asian city top 10 list. Seoul boasts only marginally fewer collectors than Beijing. Along with Tapei, Jakarta and Kuala Lumpar it represents a popular Asian city for collectors. Nevertheless, none of these cities appears in the global top 30 HNWI ranking.3

TOP 10 CITIES OF COLLECTORS IN ASIA

1 Larry’s List, Art Collector Interviews, 2013. 2 Capgemini and RBC Wealth Management, World Wealth Report, 2013. 3 Knight Frank, The Wealth Report, 2013.

CHINA

THE NATIONAL ART COLLECTOR SCENE: CHINA

Beijing

41%

Shanghai

11%

CHENGDU

Hong Kong RANK 1 2 3 4 5

CITY

COUNTRY % OF COLLECTORS

Beijing Hong Kong Taipei Shanghai Chengdu

China Hong Kong Taiwan China China

16%

TaiPEI

14%

41% 16% 14% 11% 3%

TOP 5 CITIES OF COLLECTORS IN CHINA

45% RANK 1 2 3 4 5 6 7 8 9 10

ARTIST

NATIONALITY

Zeng Fanzhi Zhang Xiaogang Zhou Chunya Wu Guanzhong1 Zao Wou-Ki1 Fang Lijun Zhang Daqian1 Lin Fengmian1 Liu Xiaodong Liu Ye

Chinese Chinese Chinese Chinese Chinese Chinese Chinese Chinese Chinese Chinese

% OF COLLECTIONS

GLOBAL RANK

13% 12% 12% 11% 9% 8% 8% 6% 6% 6%

61 59 111 97 198 105 267 353 253 274

TOP 10 ARTISTS OF COLLECTIONS IN CHINA

33% 17% 5% 0%

before 1960

1961– 1970

1971– 1980

1981– 1990

1991– 2000

2001– 2010

STARTING DATE OF COLLECTIONS IN CHINA

1 Modern artists are not excluded; even so, focus of all analysed collectors has to be on contemporary. See appendix for methodology.

after 2010

The art market in Greater China has grown rapidly from the mid-2000s onwards, emerging as one of the most important markets for contemporary art in the world, and the one with the highest turnover in Asia. With a post-war and contemporary art market share of 28% in 2013, it comes second only to the US.1 Overall 5% of global art collectors are based in mainland China, a further 1% are based in each of Hong Kong and Taiwan. This combined area of Greater China overtakes Brazil, and rivals Germany and the United Kingdom. To date, the Chinese collector market has been characterised by high competition, and consequently top-end prices, for works by Chinese contemporary artists. Hong Kongbased collector William Lim sees the reasons for the high demand for contemporary Chinese artists in the short history of Chinese art: “China is a huge country and contemporary art in China has a very short history of maybe 30 to 40 years … Therefore the amount of works that have been produced compared to the population in China is really small, which is the reason for the strong demand for Chinese contemporary artworks.”2 Between 2011 and 2012 China experienced 14.3% growth in its HNWI population, and now takes fourth place in the ranking of largest HNWI populations worldwide.3 The wider Chinese economy continues to create increasing numbers of HNWIs and wealthy middle classes, and the acquisition of art continues to embed itself in the popular culture. Therefore art – also as an asset class – is likely to gain even more popularity as well, bringing more middle-sized collectors into the market in the near future.

TOP 5 CITIES The four leading Chinese art hubs are self-evident from the top 10 Asian city rankings. Over

85% of the collectors are based in the top 5 cities. Other cities in China cannot compete with these hubs. By the numbers, Chinese metropolis Chengdu ranks fifth, but in reality, with 3% of China’s collectors, cannot be viewed in the same light as the top four.

STARTING DATE The start dates of Chinese collections clearly indicate just how new the Chinese market is. The nearly complete absence of major private collecting activities prior to 1980, a surge in interest in the 1990s presaged the likely direction of art collecting in China, followed by a major rise in the numbers of collections between 2000 and 2010. 45% of collections were started in the first decade of the new millennium and a further 5% in the three years since 2010. This is a stark contrast to worldwide statistics: globally, 18% started collecting before 1971, and only a recorded 1% of collections have been started in the three years since 2010.

TOP 10 ARTISTS All of the artists who appear in the top 10 artist rankings in China are Chinese. The Beijing-based artist Zeng Fanzhi, who reached position 61 in the global artist ranking, tops the Chinese list. In October 2013 the painting The Last Supper by Zeng Fanzhi’s was sold at Sotheby’s Hong Kong for US$23.3 million and is therefore the most expensive contemporary Asian artwork ever sold at auction. With 27% of his artworks placed in collections outside China, his status as a favourite collectible extends beyond Chinese collectors into Western collections. Zhang Xiaogang enjoys similar popularity levels as Zeng Fanzhi and takes rank two. Also, both artists are represented by

CHINA

leading US galleries. The artist Zhou Chunya is ranked third; fourth is Wu Guanzhong, who had an auction turnover of US$74.5 million in 2013. Zao Wou-Ki is the only artist in the ranking whose paintings can be described as abstract works. He is followed by Fang Lijun and Zhang Daqian. Lin Fengmian, a pioneer in fusing traditional Chinese painting and Western influences, is ranked eighth and is followed by Liu Xiaodong and Liu Ye. When looking at the global ranks of the top Chinese artists it is noticable that none of them appears in the global top 50. Discussed on the development of Chinese artists in a global context, Hong Kong-based art expert Claire Raibaut, states that “if the art system carries on like it is at the moment, there will definitely be more Chinese superstars. However, art historians and institutions have to be considered as well. I think that, no matter how, Chinese artists will be more recognized by the Western art world in the future.”1

PRIVATE MUSEUMS

CHINA

or Wang Wei, but most of the collectors stay anonymous.”2 Nonetheless, the “young” collector scene itself can be considered as the main argument for the current absence of a large number of museums. A trend that this will change in the near future can be clearly observed. Interestingly only one contemporary art museum situates in the art hub Hong Kong. William Lim argues that “compared to China the situation of private museums (in Hong Kong) is different. The prices for land are really expensive in Hong Kong and therefore it is difficult to present collections to the public.”3 The development of private museums and initiatives is not necessarily conflicting with the public engagements of private collectors. In January 2014, Guan Yi, one the of the early collectors of contemporary Chinese art in mainland China, who opened the Guan Yi Contemporary Art Archive in Beijing’s Songzhuang in 2004, donated 37 important works of Chinese contemporary to the newly build M+ museum in Hong Kong.

Collecting has gathered its pace in the Chinese market, as well as the corollary development of private museums. Overall there are 17 museums by private collectors, six of which are in Beijing. In addition, many private Chinese collections are presented in publicly accessible restaurants, hotels or offices, which are not regarded as private museums according to the definition applied in this study. Nevertheless, compared to other top collector countries like the United States and Germany, these numbers contradicted with Chinese art collectors to show their collection to the public. Discussing the lack of private museums, collector for Chinese art Sylvain Levy explains that “… by nature, Chinese people don’t display their collection to the public. Of course there are a few collectors e.g. Budi Tek

1 Larry’s List, Art Collector Interviews, 2014. 2 Larry’s List, Art Collector Interviews, 2013. 3 Larry’s List, Art Collector Interviews, 2014.

Zheng Hao

CHINA

COLLECTOR INTERVIEW Name: William Lim Location: Hong Kong Collection name: Living Collection Interests: Emerging, Hong Kong artists Artists collected: Lam Tung-pang, Kwan Sheung Chi, Wilson Shieh, Tsang Kinwah Other: William Lim has been assembling one of the largest collections of Hong Kong artists.

Your collection includes mostly Hong Kong contemporary artists. When did you start collecting and did you start with contemporary art? I started collecting Chinese contemporary art in 2005. In the middle of 2006 I got introduced to the contemporary Hong Kong art scene and I started to make a shift towards Hong Kong artists. At the time their work was not overly commercial and for me the works were very interesting. There was no art market in Hong Kong and the works they produced were created for small exhibitions. The situation changed quite quickly and today Hong Kong artists are shown in a lot of galleries and there are more opportunities for them. Also, the younger generation is starting to change their artistic approach. Did the shift of circumstances in the Hong Kong art scene also influence your collecting approach? Before I was collecting to document all the activities in the Hong Kong art scene. I covered most of the Hong Kong artists in my collection. Today I really focus on the important works and fewer artists than before. What is your focus regarding the artists in your collection? Are you more interested in emerging or renowned artists?

“THE COLLECTORS I AM PRIMARILY FAMILIAR WITH HAVE A FOCUS ON HONG KONG ARTIST BUT THEY ARE ALSO BUYING INTERNATIONAL ARTISTS. ” WILLIAM LIM

Some of the artists I collect were emerging artists when I started collecting and are now shown in major international shows. With regard to this I can’t really state whether I am focussing on emerging or renowned artists.

quite simple because we are always trying to create an aesthetically pleasing work in terms of architecture. Collecting architectural drawings or models can be very interesting as well. However art deals with other kinds of emotions.

Can you name three emerging Hong Kong artists who are on your watchlist in 2014? Kwan Sheung Chi, Morgan Wong, João Vasco Paiva.

The prices for Chinese contemporary artists exploded during the last ten years. What do you think about this development? China is a huge country and contemporary art in China has a very short history of maybe 30 to 40 years. There was never Western media in Chinese paintings until the turn of the last century and Chinese art did not have periods like the Renaissance. Therefore the amount of works that have been produced in comparison to the population in China is really small, which is the reason for the strong demand for Chinese contemporary artworks. There will always be a market for works that were produced before the big boom of Chinese contemporary art because they are very rare (e.g. works by Zhang Xiaogang or Zeng Fanzhi).

You are an architect and an artist yourself. Collecting art is a creative process as well. Do you see collecting as some kind of art? In my opinion collecting is almost like a journey that you go through. It is always open-ended. The history of art in Hong Kong is probably younger than 20 years. It is still a very young art scene and there will be many developments in the future. As collectors of Hong Kong art we are just at the beginning and there is definitely a long way to go. Also, architecture and art often correspond with each other. Do you think that there are big differences between art and architecture? What are the differences? I think architecture always has a function and art necessarily does not have to have this function. As an architect I follow an artistic approach. Nevertheless, the sense of emotion is

Our research project found around 40 contemporary private collectors in Hong Kong. What is your observation? How many active contemporary art collectors are based in Hong Kong? Will these numbers increase? Actually, I haven’t done any research regarding

the number of collectors in Hong Kong. Among the collectors that I know there are maybe 10 keen and very good collectors. I am a little bit surprised that there are actually around 40 contemporary private collectors based in Hong Kong, but it is very good to know that. Are you in contact with other Hong Kong collectors? Do you visit each others’ collections? I don’t really have time to visit other peoples collections. Also, many collectors in Hong Kong keep their collections in storage because there is not enough space to show the works. Hence most of the collectors do not have the chance to display their collection publicly. Chinese collectors usually focus mainly on Chinese artists. Hong Kong is an international metropolis. Do Hong Kong collectors follow a more international collecting approach? The collectors I am primarily familiar with have a focus on Hong Kong artists, but they are also buying international artists. In my opinion that is the interesting part in art collecting: you always need to have a focus but you have to be open-minded for new things as well. Our statistics state that Chinese collectors are younger than Western collectors and

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also many collectors began collecting art recently in China. What are the reasons for young professionals to start collecting contemporary art? Why is there such a growing interest? At the moment there is a lot of international interest in the Hong Kong art market (e.g. Art Basel HK) and also a lot of international organizations are purchasing Hong Kong artists. Due to these facts a lot of young professionals find art interesting and also see it as a good investment opportunity to collect Hong Kong art since the art is also still very affordable. We spoke to European collectors, who are collecting Chinese artists (e.g. Sylvain Levy). Lately the Rubells opened an exhibition dealing with Chinese artists. Do you think that contemporary Chinese artists will gain more popularity outside Asia in the future? And what about artists from Hong Kong? The Burgers and the Levys are both some kind of pioneers as Western collectors collecting Hong Kong artists. They both follow a very interesting and encouraging approach. In the future there will be other collectors following them. A friend of mine from Dallas came to Art Basel HK last year and went home with a work by a Hong Kong artist. I think that there are definitely a lot of good artists in Hong Kong and as long as people notice them, Hong Kong artist will be more and more present in Western collections.

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global artist â&#x20AC;&#x153;superstarsâ&#x20AC;? will be Chinese artists. Do you share this opinion? In China there are a few artists which will be important. As an example, artists such as Zeng Fanzhi are already achieving very high prices. He produced very rare series (e.g. Hospital series), which is really smart because the demand gets stronger if there are only a few works available on the market. There are many private museums opening in China at the moment. Do you have plans to make your collection publicly available? I published a book with Hatje Cantz on my collection1 and I hope it will help to raise more public attention to Hong Kong artists. Compared to China the situation of private museums is different. The prices for land are really expensive in Hong Kong and therefore it is difficult to present collections to the public. I own a small studio that I open for people to visit at art fairs. Nevertheless, for me it is not important to own a private museum. I hope that at some point my collection will help to document the situation of Hong Kong artists of today and I also hope that in the future people will find my collection important and encouraging.

The influence of private collectors in the art scene is bigger than ever before. As the Chinese (and also Asian) collector base is growing rapidly, we assume that some of the next 1 Editorâ&#x20AC;&#x2122;s note: published in May 2014.

William Lim

INDIA

THE NATIONAL ART COLLECTOR SCENE: INDIA NEW DELHI

27%

Calcutta

13%

MumbaI

33%

BANGALORE

5% RANK 1 2 3 4 5

CITY

CHENNAI

% OF COLLECTORS

Mumbai New Delhi Calcutta Chennai Bangalore

33% 27% 13% 5% 5%

TOP 5 CITIES OF COLLECTORS IN INDIA

RANK 1 2 3 4 5 6 7 8 9 10

ARTIST

NATIONALITY

M. F. Husain S. H. Raza Anjolie Ela Menon F. N. Souza Akbar Padamsee Manjit Bawa Atul Dodiya Jogen Chowdhury Jitish Kallat Ram Kumar

India India India India India India India India India India

TOP 10 ARTISTS OF COLLECTIONS IN INDIA

% OF COLLECTIONS

GLOBAL RANK

44% 33% 24% 23% 19% 19% 17% 17% 16% 15%

53 74 200 104 205 251 204 217 211 240

As China’s star continues to rise on the art market, India should also be firmly in the sights of those watching emergent trends. Undeterred by a contraction in Indian art market sales between 2008 and 2012 – which led to a decision by Sotheby’s to hold fewer Indian modern and contemporary art sales in 2013 – the country is adopting the promotional measures exemplified by Western markets with the introduction of the Indian Art Fair and the first biennale (Kochi-Moziris Biennale), both held in 2012. While the Indian share of the global art market is still small at less than 1%, or US$250 million, it has increased by 485% over the last decade.1 Nonetheless, benchmarked against Brazil, which is in a slightly more advanced position in terms of its emergence on the art market with a market share of US$597 million, the Indian art market is clearly still in its developmental stages. Overall 2% of global contemporary art collectors are based in India, which leads to tenth place in the global country ranking. It is identifiable that the number of collectors in emerging countries such as India will increase, which is also confirmed by Dirk Heinrich: “During the next ten years the art markets respectively the collector landscapes in Brazil and India will increase vastly.”2

TOP 5 CITIES 32% 25% 14%

11%

14%

4% < 30

31–40

41–50

51–60

61–70

> 70

AGE BREAKDOWN OF COLLECTORS IN INDIA

The only Indian city in the Asian top 10, Mumbai accounts for one in three of India’s art collectors. After New Delhi, with over a quarter of India’s collector population, and third ranked Kolkata, Chennai and Bangalore come a distant fourth and fifth, both with 5%. Altogether, nearly three fourth of India’s art collectors are concentrated among the Indian top 3 cities.

AGE India’s art collector profile is markedly young. 32% of the Indian collectors are between 31 and 40 years old and 4% are even 30 years or younger. Consequently, only 64% of the Indian collectors are over 41 years old whereas globally 90% of the collectors are 41 years old or older.

STARTING DATE Given the younger age of Indian art collectors, starting dates of Indian collections hold no surprises. 18% of collections were founded between 2000 and 2010 and 33% between 1991 and 2000. These numbers show that more than 50% of Indian collections have been compiled relatively recently compared to global collections.

TOP 10 ARTISTS M. F. Husain takes pride of place in the artists’ ranking in India with his revisionist treatment of traditional Indian motives in a modern Indian style and a presence in 44% of Indian art collections. Second place is occupied by S.H. Raza, who set the auction record for Indian art in 2010 when his work Saurashtra was sold for US$3.5 million at Christie’s. However, his global position is based mainly on Indian collectors; only 21% of collections featuring Raza are based outside India. Anjolie Ela Menon is the only female in the top 10 and takes third place. The expressionist F. N. Souza is ranked fourth. Souza enjoys slightly more widespread popularity outside India, and particularly in the United Kingdom; 37% of the collections in which he is present are outside India. Overall, the rankings suggest that modern has the upper hand over contemporary. 69% of art collectors in India also collect modern and

66 “Growth in Indian art paves the way for wealth management”, The Economic Times, 31/01/2013. 67 Larry’s List, Art Collector Interviews, 2014.

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twentieth-century art, and artists with long-established track records painting in a traditional style seem to be more desirable than emerging or contemporary artists. The evidence for this rather conservative approach to collecting extends to market share for contemporary artworks. Only 14% of lots sold at auction were contemporary, and the percentage by total value was even smaller at 5%.1

MEDIA FOCUS With the traditional genres such as painting (in 95% of Indian collections) and sculpture (in 38%) dominating the genre ranking, also 9% of the Indian collectors collect film and video art and 6% collect new media and Internet art. Most of those later collections belong to individuals who might be categorised as the young generation of Indian collectors. One sample collector for the young generation is

Shalini Passi. This New Delhi-based collector is focused on contemporary Indian art, although she also owns artworks by renowned traditional artists such as M. F. Husain. Her collection began with video artists like Shilpa Gupta and Sonia Khurana, and she stands out as a new breed with fresh ideas about forming exciting art collections. This new generation of collectors is sparking a shift in the Indian collector market. While new genres are appearing on the market, art fairs are being founded and galleries opened, in the main the Indian collector base has remained wedded to traditional modern Indian artists. However, contemporary artists like Nalini Malani, who participated at dOCUMENTA (13) in Germany, are becoming more popular, while contemporary Indian artist Jitish Kallat has made it into 16% of the Indian collections, with a presence in European and Asian collections as well.

â&#x20AC;&#x153;I THINK THE MARKET WILL GROW IN THE FUTURE. THERE WILL BE MORE PUBLIC PROJECTS AND THESE PROJECTS WILL LEAD TO MORE AWARENESS, WHICH WILL DEFINITELY LEAD TO AN INCREASING NUMBER OF COLLECTORS IN INDIA. â&#x20AC;? ASHIESH SHAH

1 Art Tactic and Deloitte, Art Finance Report, 2013.

Ashiesh Shah

RESEARCH METHODOLOGY APPROACH

The ART COLLECTOR REPORT 2014 is based on the longitudinal research project carried out by 25 researchers from 20 nations, starting in Fall 2012, who have built the most extensive database on private art collectors available on the market. All the information used in the database is based on publicly available data. While the research is ongoing, the database is continuously updated and the collector base extended by further private art collectors from different parts of the world. By the cut-off date the number of art collectors accounts for 3,111 individuals in the art collector database.

DEFINITION OF AN ART COLLECTOR Not every individual owning an artwork or artworks can be classified as an art collector. Therefore, we defined a number of criteria that have to be fulfilled to qualify as an art collector and to be considered and included in the Larry’s List database. Firstly, as the focus of this study is on contemporary art, it is essential that the collector focuses on collecting contemporary art. Very few collectors restrict themselves to only contemporary art; most collect contemporary alongside modern art, nineteenth-century art, Old Masters or antiques. That being said, our data mining and analysis does not exclude these art genres. Secondly, the collection must contain a critical number of artworks. In certain circumstances, exceptions are made, for example when the collector owns a monumental sculpture garden containing a smaller number of works. Thirdly, only living collectors who are still active on the art market are considered. Fourthly, as the database is constructed on publicly available data, it is essential that a minimum

of two independent publicly available sources confirm the person’s status as an art collector, this can e.g. be an interview by the collector in an art magazine, or a talk in the program of an art fair. Thus, only collectors who have a public footprint can be converted into a systematic collector profile and hence be included in our data analysis. According to these criteria the total number of art collectors included in this research was 3,111 as of 15 September 2013.

OVERVIEW OF SOURCES Our team searched through books, magazines, publications, newspapers, search engines, databases, websites, blogs and state archives. In total, over 27,000 individual sources were used.

SECONDARY SOURCES

Among others, key sources are art market and wealth reports, interviews and articles in newspapers and news portals, on art websites, art blogs and in art magazines Another source are exhibition catalogues for museums, which include artworks linked to a private collection or catalogues of private collections. Many collectors publish information on their collection through publications or webpages, and these were used where they existed.

PRIMARY SOURCES

Dozens of interviews have been conducted with art collectors based in different regions of the world but also other art market players, including dealers, gallerists, art insurers and art fair directors.

RESEARCH RESULTS AND ESTABLISHED DATABASE All our findings were systematically inserted into a data profile containing the following categories.

INFORMATION ON THE COLLECTOR Basic: First name, last name (also in original language), title, year of birth, gender, nationality, residences (city and country), university and areas of interest, collects individual or with a partner. Contacts: Email, social networks, personal websites and Wikipedia. Business / industry background: Company, position, industry and address of the company. Art engagement: Details of any museum appointments, year of appointment, address of the museum. Membership of art societies / friends of museum: Name, position, year of appointment, address of the society. Other information: All other information that does not fall into one of the categories above.

INFORMATION ON THE COLLECTION Basic: Name of the collection, total number of artworks, total number of artists, name of foundation, starting date of collection, preferences concerning genre, medium, and region. Artists in collection: Name of artist, year of birth, nationality. Artworks in collection: Title, year of execution, medium, size, material. Communication platform: Website and publications of the collection. Private museum: Name, year of establishment, address.

Cooperation: Permanent loan or donation of artworks to external institutions. Cooperation with an external institution, including exhibition of own collection, sponsoring, support of educational program and funding of an award. Art adviser: First and last name, title, gender, company and contact details.

DESCRIPTION OF DATA APPLICATION FOR STATISTICS Larry’s List researchers are continuously updating the database, but 15 September 2013 was chosen as a cut-off point after which no additional information was included in this report. This provided 3,111 art collector profiles from 73 nations in the database. As some collectors do share their collections, most frequently those who collect as a couple, the number of art collections does not equal the number of collectors. All collector profiles contain as much information as is available through publicly accessible sources but not all profiles include the same quantity of information. The statistics therefore do not result from data from all collectors or collections; however, each statistic is underpinned by information mined from a minimum number of relevant collectors or collections.

IMPRINT

ABOUT LARRY’S LIST

EDITED BY

AUTHORS

Larry’s List Ltd.

Max Bossier, Christoph Noe, Dr. Magnus Resch, Dr. Lasse Steiner

PUBLICATION DATE November 2014

PUBLISHER MODERN ARTS PUBLISHING www.vfmk.de

DESIGN / GRAPHICS Nico M0

PHOTO CREDITS Cover:

Page 03:

Boo Ritson, Monique, 2009, Archival digital print on Somerset paper, 101.6 cm x 78.05 cm, unframed Courtesy of the Poppy Sebire Gallery Ltd, the artist and the Burger Collection, Hong Kong. Photography Andy Crawford Thomas Olbricht, Berlin, Photo Credit: Jana Ebert, Courtesy of me Collectors Room / Stiftung Olbricht

Page 17:

Deddy Kusuma, Jakarta, Courtesy of Deddy Kusuma

Page 28:

Heiner Wemhöhner, Herford, Copyright: def image, Courtesy of Wemhöner Collection

Page 34:

Jack Guthman, Chicago, Courtesy of Jack Guthman

Page 44:

Dominique and Sylvain Levy, Paris, Courtesy of DSL Collection

Page 53:

Christian Hoste, Courtesy of pmg, Premier Management & Marketing Group

Page 60:

Zheng Hao, Courtesy of How Art Museum

Page 64:

William Lim, Hong Kong, Courtesy of Living Collection

Page 68:

Ashiesh Shah, Mumbai, Courtesy of Ashiesh Shah

SPECIAL THANKS TO Prof. Dr. Dr. h.c. mult. Bruno Frey

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Which city in the world has the highest density of contemporary art collectors? Which country? Why does Germany have almost as many private art museums as the US? And what are the future trends for the global collector scene? ART COLLECTOR REPORT 2014