How Do Large Banks Intersect with Art Collecting?
February 1, 2024 Fanyu Lin for Financial Times (Chinese)
Why collect art? In this episode of the global leadership conversation series on FT Chinese, my guest is Fotini Xydas, the Co-head of Art Advisory & Finance at Citi Private Bank. Working alongside some of the world's top collectors to assemble art collections of museum quality that endure and inspire across generations, Fotini derives immense joy from both the art itself and from the clients who are driven by a deep passion for art and the desire to create a lasting legacy:
“I’ve had the privilege of meeting and working with some incredibly fascinating clients, from whom I’ve also learned a great deal. Every client’s unique background and perspective is what keeps things interesting. With art, the learning never ends. For the curious mind, it’s an endless source of education and joy. For me, the ultimate fulfillment is seeing a client build a collection and derive that same joy from living with great art in their home.”
Portrait of Fotini Xydas
Citi is one of the earliest pioneers who created the art-secured lending market over fifty years ago. As explained by Fotini, Citi Private Bank was an early believer in the value of art, as both a source of emotional reward and an asset within one’s overall financial portfolio. Unlike most other banks, their Art Advisory & Finance team values the art in-house when establishing an art loan, providing confidentiality and ease for clients to make quick additions or substitutions. They are actively growing their art lending business on an international scale, particularly in Asia, the UK and Europe.
Through my conversation with Fotini, it became evident that the collectors she works with view their collections not merely as financial assets but as vital elements of cultural legacy. They understand these collections as key contributors to a legacy that goes beyond personal gratification and investment. This perspective accentuates the significance of art as a fundamental cultural asset, essential in both safeguarding and molding our shared cultural heritage.
Cultural Legacy of Art Collections
In her unique role as an “independent” art advisor within a prominent financial institution, Fotini shared how they collaborate with a wide array of stakeholders in the art market ecosystem. Their primary goal as Art Advisors is to help clients navigate the complexity of the art market and bring transparency to the collecting process. She explained that their work involves liaising with a diverse group of reputable galleries, dealers, and auction houses across the globe, in addition to various vendors, including framers, conservators, shippers and insurers, in helping to manage clients' collections. Fotini emphasized that building a collection involves more than just the acquisition of art. At Citi Private Bank, they have dedicated Art Collections Managers who step in post-purchase. The manager ensures that every piece of art is not only properly installed but also well cared for, and comes with all proper documentation. Additionally, she mentioned the advisory services they provide in facilitating the lending of artworks from clients' collections to museums. This not only helps in showcasing the art to a broader audience but also plays a role in the cultural enrichment and education of the public.
Fotini shared with me that many of her clients are deeply involved in the art community, well beyond the confines of their private collections. They actively participate in various art institutions, often serving as board members. This involvement demonstrates their dedication to supporting the arts within their communities and reflects their understanding of the role of art as a cultural asset and its contribution to a broader legacy.
One of the most significant ways these collectors contribute to the arts, Fotini explained, is by lending artworks from their collections to museums. This practice allows a broader public audience to experience rare and significant works, which might otherwise remain inaccessible. Such contributions are invaluable, not only in enriching public access to art but also in advancing academic scholarship and research in the field.
The generosity of some collectors is expressed in donating artworks to museums, and in some cases, they may bequeath their entire collections. Beyond the aspect of legacy planning and wealth transfer, this deep commitment ensures that these art collections will be accessible and appreciated by future generations beyond their own families, thereby greatly reinforcing the role of art in preserving and enhancing cultural legacies.
A Long-overdue Reassessment of the Art Historical Canon
Fotini highlighted that we are currently witnessing a significant reassessment of the art historical canon. This reassessment is bringing to light a diverse array of artists from various backgrounds and geographies, which is dramatically changing the face of the art world. She pointed out the increasing visibility of women and underrepresented groups in the art field. Museums are rehanging and expanding their permanent collections to include these artists, special exhibitions are being dedicated to them, and, notably, their works are achieving higher prices in the art market. She referenced 2023 as a landmark year, with new auction records set for female artists such as Barbara Hepworth, Agnes Martin, Joan Mitchell, and Julie Mehretu.
Joan Mitchell, Sunflowers, 1990-91, A Life of Beauty: The Collection of John Cheim, Sotheby’s, New York
“This broadening of the traditional art historical canon is an exciting development, and one that may continue to grow and evolve over time, resulting in revaluations in our perceived artist hierarchies and values.”
She also noted that the inclusion of new artists in the art historical record doesn't necessarily mean the exclusion of traditional masters. There remains a strong interest among collectors in household names from art history, particularly as the global art market and the number of collectors continue to expand. She mentioned the dwindling supply of top-tier Impressionist, Modern, and Postwar works in private hands. When major estates like those of Peggy and David Rockefeller, Paul Allen, and Emily Fisher Landau come to market, they generate renewed demand.
Pablo Picasso, Femme à la montre, 1932. Sotheby's Unveils The Emily Fisher Landau Collection At the Breuer Building. Photo by Alexi J. Rosenfeld/Getty Images
In navigating this changing landscape of art valuation and market dynamics, especially regarding estate management and intergenerational wealth transfer, Fotini suggests that it is crucial to look beyond market trends. She advocates for considering the longstanding contributions of individual artists, the quality of specific artworks, and the meaning they bring to a collection. This approach will enable collectors to build collections that are not only financially sound but also abundant in cultural and personal value.
Curatorial Approach in Art Advisory
Leveraging their strong art history and curatorial background, Fotini and her team approach client advisory with a focus on depth, range, and identifying unique opportunities and significant artists and works, often beyond the well-known choices and ahead of market trends. This proactive approach is rooted in their extensive experience in examining and understanding artworks, coupled with a vast network of gallerists, dealers, and auction specialists.
The team's focus is on sourcing the highest quality works, ensuring that each acquisition is not only aesthetically valuable but also a sound investment. They undertake thorough due diligence and are adept at negotiating the best possible prices for their clients. Fotini highlighted a key aspect of their position as “independent” art advisors – objectivity. “What also sets us apart is our objectivity, representing our clients’ best interests in any transaction.”
Specializing in 19th to mid-20th century American and European art, Fotini emphasized that due diligence is paramount when acquiring historic works from this specific era. This includes obtaining original certificates of authenticity from specific committees for certain artists, as well as verifying that an artwork is included in an artist's catalogue raisonné – a publication documenting artworks completed by that artist—or other relevant publications. Provenance, or the ownership history of a piece, is also crucial, along with the artwork's condition. It's common for older paintings to have undergone treatments like relining or repainting, which can alter their appearance. These aspects are all meticulously scrutinized by her team when advising clients on potential purchases.
She also observed that as clients become more engaged and knowledgeable about art, their tastes tend to evolve, often leading them to explore new directions in their collections. This evolution reflects the dynamic nature of art collecting, where ongoing learning and discovery shape collectors' choices and preferences. Her team's expertise in navigating these complexities helps clients build collections that are not only historically significant but also personally resonant.
Personal Stories in Art Collections
Fotini emphasizes their unique approach in guiding clients to reflect their life stories, passions, and identities through their art collections. “We recognize that every client brings a unique vision to collecting and we want their experience to reflect their personal interests.” They provide clients with the necessary tools and information to make informed decisions, whether it’s for buying or selling art. A significant part of their advisory service involves taking clients through auction previews, gallery visits, and museum exhibitions. This introduces clients to a wide range of artists and works, allowing them to discover what truly resonates with them. Fotini finds it particularly fascinating to observe the specific artworks that draw a client’s attention. She and her team assist clients in focusing on a theme for their collection. This could be something as specific as Abstract Expressionist paintings from the 1940s and 1950s or broader themes that transcend historical periods and art market categories, such as nature and conservation, figuration in art, or expressionism and color.
According to Fotini, the most remarkable collections are those that go beyond an artist checklist. Instead, they narrate a story steeped in both personal and historical significance, greatly enriching the collector's legacy. This perspective frames art collecting not just as an acquisition of arts but as a deeply personal journey, weaving together individual expression and historical context. "An art collection is like a visual diary," as she beautifully states, illustrating how it embodies a collector’s life, loves and views on the world.
