Art and Finance: the multi-family office of art

Art and Finance: the multi-family office of art

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Partners, Art and Finance:

Jean-François Fliti, co-founding partner, Allure Finance; Édouard Petitdidier, co-founding partner, Allure Finance; Rebecca Jacquin, associate notary, Jacquin et Associés; Julien Anfruns, lawyer, JPA firm; Jean-Luc Haddad, Founding President, Grospiron International.

Decision makers. How was Art and Finance born?

Jean-Francois Fliti. The idea came during a lunch last summer with Rebecca Jacquin, notary and passionate about art, who was finishing her master’s degree in art at Dauphine and who reminded me of all the interest of launching a specialized structure of art advice , both for individuals and companies. I thought about it during the summer and went to find future partners in the circle of my friends, including Julien Anfruns, who was the legal and financial director of the Louvre Museum, enarque and art lawyer; and Jean-Luc Haddad, passionate about contemporary art and president of Grospiron International, a transport and mobility services company. Rebecca Jacquin, art notary, joined our project as well as my partner Édouard Petididier, also a great art lover. I myself am an estate tax specialist. This is the winning combination. A managing directora great art expert, is also being recruited to manage the entity operationally.

What will your company’s activities be?

This structure will carry out three main trades: advice and support in the pleasure acquisition of works of art – paintings, sculptures, photographs; intermediation or brokerage of these same pieces, and art financing through leasing, that is to say rental with or without option to buy.

“This structure will carry out three main trades: advice, intermediation and financing in art”

Then, three sub-pillars will complete our offer, namely the transport and storage of works of art by a specialist, Grospiron Fine Art, art insurance, and tax advice and French and international planning. in art – in two words, how to structure your acquisitions, disposals and transmission, and finally art patronage. We are also thinking about integrating NFTs into our services.

The idea is to create a multi-family art office where the client, natural or legal person, can choose one of the services at his convenience, or simply let himself be advised and helped so that he can buy well. , transport, insure, enhance and transmit works of art. All these strata exist today, but separately.

Compared to NFT, which is a relatively different theme, what are your leads?

Rebecca Jacquin, who has studied the field extensively with blockchain in particular, thinks there is enormous potential thanks to the security and authentication that blockchain can provide. Unfortunately, from time to time there are fakes when it comes to fabrics. The blockchain will prevent any falsification and possibly this certificate of ownership being associated with the physical sale. For example, you will have the physical canvas and the corresponding NFT. It’s a possibility. However, if some customers only want one or the other… it will be à la carte.

What are the projects for Art and Finance?

We are considering setting up an art fund, which will be unregulated but AMF approved. The idea is that each of our clients can buy a canvas for 100,000 or 1 million euros. But if I have ten clients who each invest 1 million euros or 20 clients who each invest 500,000, we have ten million euros, with which we can buy a canvas at 5 million euros and five canvases at 1 million. This fund will own the physical. Shareholders will be able to lend themselves a Picasso or a Soulages… And when one of the objects in the fund has appreciated in value after a few years and is resold, the value of the fund will be increased. In fact, it is the same system as a mutual fund with shares. I want diversification, risk reduction, I play the aggregate.

On leasing in general, it is a rent like a financial lease. Moreover, we are thinking with the departments of several banking groups about how we could allocate a furniture lease to art. This was done over time, we are not inventing anything. The idea is as follows: I want to buy a painting worth 100,000 euros, but I don’t have the money. On the other hand, I may have 1,000 euros per month. I can then rent this canvas that I like for three years, like renting a house or a car. A second possibility is rental with option to buy.

“A reflection is underway on the creation of a Lombard art credit”

Finally, a reflection is underway on the creation of a Lombard art credit: financial engineering on art in terms of financing, in order to monetize works of art of a certain amount, a bit like a pledge value.

What is the appetite of societies in art?

This ranges from SMEs to large French groups, because a certain number of large groups have foundations, others do art patronage and exhibit young artists. We are going to collaborate and work with a certain number of them within the framework of their project of investment, patronage and assistance to artists. For SMEs, some business leaders who do not have the time want to diversify their company’s assets. Instead of buying a third building, they can buy a sculpture or a painting, for example, which will be an investment.

Interview by Marc Munier

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