Stories

The client had informed me he was going to start an E Formula 1 in Abu Dhabi, and so I thought there wasn’t much need for due diligence. I entered a guaranteed contract with one auction house for a Basquiat painting, having successfully predicted the trend and predicted that the market was about to boom. However, after I bought the painting, the client became very sketchy about payment, suggesting eventually that he pay half in cash and half in gold bars, which is where I drew the line. This then incurred my own responsibility to pay for the painting in full, and when the vendor found out I was the buyer it was made very public. In due course, I was able to come up with the funds via investors and family connections, and I was still able to sell the painting to the same auction house a year later with a 30% profit; ultimately, I was able to perform under pressure. Subsequently, the man who bought the painting then went on to sell it through a gallery with another 50% profit on top.

A few years later, when I first started doing club deals, I identified a David Hockney painting to be undervalued from a collector on the west coast, and I had pitched to an east coast investor to enter into a deal with me and grab the opportunity, as I had foreseen that there would be at least 20% up sight on the painting. The investor told me I needed to put down 10% out of my own money to mitigate his risk, and he also asked that I sign an agreement to take the first 10% loss. I was eager and sure of myself, so I agreed, even agreeing to take up to a 20% loss. The plan was to sell it within a year, and I told him if it didn’t make money, he could keep my money. At this time people were comparing paintings with properties, but I argued that if a painting can be sold within a year, it offers much higher return. In just 6 months’ time, I was able to attain an auction guarantee with a 50% return.

These are times in my career when I believe I have put my money where my mouth is, and this differentiates me within the industry, as well as always aligning my own interests with those of my clients; their win is my gain. My clients rely on my expertise to perform, whatever the market conditions may be. Over the years I have been fortunate enough to have had talented long-term partners in the business, allowing me to navigate difficult times and financial downturns. This puts me in a unique position to be able to both operate and cooperate successfully in the art market.