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ArtEx

THE ART EXCHANGEArt Investment ManagementPrimary Art SalesSecondary Art Sales

ArtExThe Art Exchange

www.artexchangeindia.com

contents EXECUTIVE SUMMARY THE ArtEx ADVANTAGE ART SELLERS/ARTISTS SERVICES ARTEX PRODUCTS GEOGRAPHICAL REACH FOUNDER PROFILE CONTACT INFORMATION



executive summary The Art Exchange brings together buyers of Indian art and artists

and owners of artworks who wish to sell ArtEx provides liquidity in the art market increases the number

of buyers and sellers of art taking it away from its current nature of being concentrated in small groups of buyers and sellers

The ArtEx also provides significant transparency since buyers and sellers can track prices of an artist’s artwork when it is sold by the artist and when it is subsequently sold by owners of the artist’s work to other buyers

Over 500 Artists in the entire range of prices work with ArtEx in selling their artworks.

The ArtEx global database of buyers includes Institutional buyers like Hotels, Hospitals, Corporates and over 5000 Business/Promoters of businesses and CXO level management professionals



executive summary The ArtExchange enables “discovery” of the real price for an

artist’s work and creates an active secondary market (or liquidity) for works of art

The Art Exchange or “The ArtEx” , brings together Contemporary Art buyers and sellers. It provides a platform to buy and sell art based on established principles of investment valuations on prices and artists

The Art Exchange operates through a network of Member Brokers (just like a Stock Exchange operates through a network of Members of the exchange). Each Member meets stringent entry norms, networth requirements and minimum guarantee requirements and completes Art Purchases/Sales

The ArtExchange acts like a clearing house making sure payments reach the seller and the art reaches the buyer

All trading/purchase and sale data on artwork is available online through a Member of the ArtExchange



executive summary ArtEx establishes the Pricing, History, Authenticity of art and

sellers. We maintain a register of owners for art works on resale, calculate appreciation of works of art, the no of paintings that the artist paints and establish a benchmark on what the art work is worth

Unmatched access to art investors and buyers. An extensive database of potential buyers of Indian and Asian art

Prices are based on scientific valuation benchmarks like artist history, no of paintings, past pricing and appreciation in value and the current state of the art market

Private Sales – Confidential sales, valuations and appraisals of art. We can identify potential buyers of Indian and Asia art for a private collection from the individuals and institutions around the world

Institutional buyers – We reach global institutional buyers of Art and Art Funds who know how to appreciate top quality art and pay the price based on its potential rather than current value



the ArtEx advantage The ArtExchange provides the following key benefits of those

selling and buying art Ownership Registry – A clear proof of ownership, price,

purchase/sale date of the artwork. This clears valuation and issues for tax, inheritance etc

Prices for art are available online to increase transparency Creating a “secondary” market - While its easy to buy art, its

difficult to know what it will sell at. Any seller of art can come to ArtEx and put his art for sale (subject to ArtEx acceptance of the artwork for sale based on our criteria for price, artist etc)

Providing Research on art to determine a basis of purchasing it based on parameters like the age of the artist, his works, how prolific he/she is



the ArtEx advantage The ArtExchange provides the following key benefits of those

selling and buying art “Primary Sales” - The sale of art by artists directly to

professional art investors using an auction method that provides the highest price to the artist. Since the artist’s work is judged on its merits as an investment, the analysis is scientific

“Secondary Sales” – Art investors and buyers/sellers of art can trade on the ArtEx and “discover” the right price for their art

Ownership Registry – Every piece of art is accompanied with a “ArtEx Certificate of Ownership”. Every transfer of art is recorded at the back of the certificate providing an official recorded trail of ownership. This simplifies tax, ownership and other legal issues



art sellers/artists We create a market and value for artists by “discovering” the

right price because of factors like quality, potential (as identified by our research team), supply and demand and not because a few artists have made it to a clique of wealth investors

Our Investment research is based on how prolific the artist is, how old he is, his sale methodology, the broadness of his appeal etc

As artists sell their art over the years through us, we maintain a record of art sales prices, the sale of the artist’s artwork by investors and come up with an objective scale of what an artists’s work is worth over a number of years. We also keep track of how easy it is to sell a particular artists’ work

Unmatched access to art investors and buyers. An extensive database of potential buyers of Indian art

Find buyers for other rights to Artwork like Reprints, stationary, book covers etc



private & institutional collectors Selling through the ArtEx is the best way to establish and give

the best value your art can find Unmatched experience in the Indian and Asian art market Pricing of art based on transparent criteria Unmatched access to art investors and buyers. An extensive

database of potential buyers of Indian art Private Sales – Confidential sales, valuations and appraisals of

art. We can identify potential buyers of Indian art from a private collection from the individuals and institutions around the world interested in Indian art or a particular artist



menu/services The Art Exchange

Primary Art Sales Secondary Art Sales – “Market” making

Art Advisory Services Corporate Art Consulting Private Collector/Artist Advisory Art Acquisition/Disposition Services

Art Investment Management & Investment Advisory Art Value Enhancement Services – Art Valuation Services, Art

Research Services, Art Index Services



primary Art Sales – “initial art offerings” (IAO) An Artist’s work is evaluated by our team of specialists both for

its artisitic and investment potential Once selected, an Artist’s work is presented in the form of an

“Initial Art Offer” to selected institutional and individual investors along with a comprehensive summary of the artist’s profile, work, pricing and resale history etc

ArtEx arranges for the Artwork to be delivered to the buyer and the payments to be delivered to the artists



the primary offering advantage ArtEx sends an artist artwork to buyers who are focused on

that particular type of art works Provides investors/bidders with an Offering document which

has details of the artist, his collection on sale, indicative prices etc

By increasing transparency the ArtEx allows for a free discovery of the correct price for the artwork i.e the real picture of demand and supply

Artists get not just the right price for their buyer but the highest visibility of the artwork



secondary art sales We create a “secondary market” in art. Through an network,

any seller of art (artists, art owners, art investors) can put up their art for sale

The ArtEx clearing house ensures that the artwork is delivered to the buyer and the payment is made to the seller

* Subject to approval of our Secondary Art Sales committee on the quality of the artwork, artist, pricing history etc



secondary sales/offerings

A “secondary sale” is a sale by an art investor or owner of an artwork (other than the artist). A secondary sale is different from a “Primary sale” in 2 ways:

It is not being sold by artist and is not a new work of art A price history is already available on the artwork so there is

some benchmark to decide on the price



art advisory services Art investing can be tricky without the correct resources and

research. Given its “intangible” nature, “mispricing” or overpaying for art is almost a “given”

Art investing requires a keen knowledge of the condition, history, background and price trend of each artwork. ArtEx assists you with this information

Strategic planning for building art collections: Determining preferences, developing a strategy, recommending artwork and assisting clients with choosing the artists or artwork they wish to focus on

Research on Artists/Artwork, pricing etc - Art Ex’s research team has unmatched research on the market, artists and artwork including historical and current pricing trends and “liquidity”

Purchase and sale of artworks and collections - Our network of “members” have extensive access to “benchmarked” artists and artwork in India and across Asia and we leverage this to get the best prices on artwork for our clients



corporate art consulting Corporate Art Consulting advises corporations including

multinationals, big Indian companies, hospitals, hotels to identify artwork that blends with the corporate culture, vision and client base. Corporate Art consulting includes:

Art Acquisition & Disposition Building Corporate Art Collections Valuing Corporate Art collections



private collector/artist advisory The ArtExchange works with global auction houses, global

investment bank Art Advisory practices to find the best price discovery for Indian and Asian Contemporary Art

Should you be interested in getting your Private Collection of artwork to serious global collectors of Indian Contemporary Art, we will review your Art collection to see if we can recommend it for the collections of institutional or corporate clients or clients of private banks



preserving art assets* Preserving your art assets is perhaps the most critical part of

the art investor’s experience. We assist with Valuations, proof of authenticity and/or origin of an artwork

with regard to both art-historical and legal aspects by the appropriate experts

Introducing you to highly qualified experts Assisting with insurance, security and official

documentation Assistance with preservation and restoration of your

artworks Transportation of artwork (e.g. when lending works to

museums or exhibitions)

* Service may not be available in certain markets



ArtEx investor services ArtEx offers a number of services to Art Investors to

authenticate their art, make tax, inheritance and other issues simpler. Among ArtEx Service menu:

Investment Management & Investment Advisory Service ArtEx Valuation Services ArtEx Appraisals ArtEx Certification The ArtEx Register



ArtEx investor services The Art Exchange is dedicated to providing investors in Art the

research, platform and advice to make Investment decisions based on the same parameters as we use for any investment. In Art’s case, the value of quality investment advice, research and other benchmarks is even higher since art in itself has little or no “collarteral” value and all value is created by its “aspirational” element

While Indian art may be on the radars of art investors there is little data, research or pricing history to justify either the price or the art you are buying or record of what the investment potential is or could be

The ArtEx provides art investors objective benchmarks, measures, data and research on each artist, how prolific they are, what their art sold for in each year and what their art could be. Each data based on key investment parameters our analysts have created to value art



ArtEx investment management services ArtEx in association with Dutt Capital Advisors combines Art

expertise with Investment Management expertise to provide Investment Advisory and Management services to clients

Investors have the following options: Let ArtEx Investment Management Team advise on their Art

portfolio Investment Advice which is discretionary on the client



art investment management & investment advisory” Even during possession some paintings were seen to increase sometimes a hundred , a

thousand fold more rapidly than the certificates of the managed joint stock companies”

- Henry Clay Frick, Americal Steel Baron & Art Collector

We believe art is an investment like any other investment and it must have a clear history of investment performance and delivery before you put your money to it

Art must meet the 3 criteria for all investments – i.e. Return, Risk and Liquidity

Picking artists and their artwork has to be based on the same principles of investing as any other asset class including value, appreciation potential, demand/supply etc

The Art Investment Management & Investment Advisory combines our knowledge of art with Dutt Capital Advisor’s knowledge of investment and wealth management to provide art as a credible investment option to stocks, commodities and real estate



ArtEx valuation services ArtEx leverages its expertise in Art with its experience with

valuation methodologies to come up with fair, transparent and scientific valuations for artwork. ArtEx’s proprietary valuation methodologies have been developed using methodologies used for other investment classes like equities

The Art Exchange has developed objective parameters to measure the value of each piece of art and the artist so that you don’t just pay a price based on emotions (it is an investment afterall) but know when the price is too much (or too low)

Our proprietary model takes into account The age of the artist The number of paintings The uniqueness of his work Past history of appreciation over extended periods of time Holding patterns of the artist’s work



ArtEx appraisals ArtEx APPRAISALS ArtEx assists institutional investors, corporate collections and

individual investors with appraising their art For more information, please contact

[email protected]

mailto:[email protected]



ArtEx certification With thousands of artists, galleries and exhibitions its

impossible to know the investment value of each piece of art. The ArtEx Certificate is the symbol of authenticity and the artist’s value

The ArtEx Certificate for an Artist certifies that we have a record of the Artist’s works, prices, resale value etc. It establishes a benchmark against which to measure what you should pay for an artist’s work

Any Artist/owner of art can have ArtEx issue an ArtEx Certificate of Authenticity. ArtEx reviews the art, confirms with the artist and issues the certificate simplifying issues on selling art



ArtEx register An investor/owner of art can register his ownership in the ArtEx

Register. This allows clear legal title to be established and makes tax and inheritance issues simple.

The is how the ArtEx Register works: All art bought through ArtEx in Primary and Secondary offerings

is accompanied with a “ArtEx Certificate of Ownership”. If an artwork is not purchased from ArtEx, an owner/investor can

have the artwork registered and receive an “ArtEx Certificate of Ownership”. To register your artwork, please click here

Every time an artwork is transferred, ArtEx makes the transfer of ownership on the back of the ArtEx Certificate of Ownership and also issues a letter confirming the sale/purchase and the amount paid/received. ArtEx can only certify the transfer of ownership that has been done legally or through a cheque transaction



ArtEx investment research ArtEx’s Investment Research team is the only Investment

research team dedicated to Art Investment research in India It combines our depth of knowledge in art with the investment

research expertise of Dutt Capital Advisors to deliver research that looks at art as an investment class and allows comparison of returns, risk and liquidity with other investment classes like equity or real estate

The Art Exchange has developed objective parameters to measure the value of each piece of art and the artist so that you don’t just pay a price based on emotions (it is an investment after all) but know when the price is too much (or too low)

Our research model takes into account the age of the artist, the number of paintings, the uniqueness of his work, past history of appreciation over extended periods of time and holding patterns of the artist’s work



ArtEx products The ArtEx Review ArtEx Indices The ArtEx Directory



the ArtEx review The ArtEx Review reviews Artists and their Artwork for their

Investment value over extended period of time With numerous artists, there are significant risks of

underpricing or overpricing art or falling into an “art fad” trap The ArtEx Review reviews art from the perspective of

valuations using key parameters like Age of the Artist, how prolific they are with the artwork, price movements over extended periods of time etc



ArtEx indices ArtEx Indices are built to separate the price appreciation in established

artists and emerging artists. The indices are accepted as the barometer of art appreciation and potential roadblocks. The ArtEx has 3 indices:

TheArtEx Blue Chip Index – It includes established artists whose artwork are already globally recognized. The index currently includes 10 artists per country

The ArtEx GrowthIndex – It includes artists who are established but their artwork is still not globally recognized. The index currently includes 20 artists

The ArtEx Emerging Artist Index – The index includes artists who are unknown but show potential. The index currently includes 50 artists

If you are buying art as an investment, then it to measure up for standard measures of investments like value, appreciation and potential. There are no exceptions to the rule. For that purpose, we have designed a couple of tools to enable you to look at art investment scientifically



the ArtEx directory The ArtEx Directory is a “must have” for every art investor.

Published annually and updated round the year online, the ArtEx directory covers

The ArtEx Artist Directory The ArtEx ArtWork Directory The ArtEx Gallery Directory



Artex – founder profile Founded in 2005 by financial markets guru Ashu Dutt, the ArtEx

brings Indian artists and their artworks to over 5000 Business promoters and CXO level professionals at global and local companies and over 100 Institutional buyers like Hotels, Hospitals, Companies and others

Ashu is well respected for his expertise in Asian Financial markets and in his depth of understanding and structuring deals in the Asian context. He is often invited by global investment banks like Barclays, Citigroup, UBS (apart from numerous Asia centric Capital Markets, M&A, Real Estate Structured Finance, Investment Banking conferences)

Ashu has been a nationally respected TV anchor and Business/Financial News Consultant/Editor to Start News, CNBC and NDTV. He has anchored benchmark shows like “Bazaar”, “Star Business News”, “Opening Moves”, “Insurance Intelligence”,“Mutual Fund Investor” and “Classroom”. Ashu has also been the CEO of SAB Tv



Artex – founder profileo Ashu has been the CEO at Northbridge Capital Limited (Member,

National Stock Exchange & OTC Exchange of India), an institutional broker and equities research house. Northbridge Capital Limited was listed for 3 continuous years in the “Who’s Who in Asian Equities”

Before returning to India in 1996, Ashu was Manager-International Taxes and Special Projects at Continental Grain Company, the world’s fourth largest private company and the second largest commodities and commodities options trader (and a member at the Chicago Board of Trade) headquartered in New York. He has also worked as a Tax Policy Analyst with the Office of Tax Policy, New York City Department of Finance in New York.

Ashu is a Certified Public Accountant certified in the State of Maryland, USA. He holds an M.B.A from Bernard M. Baruch College, City University of New York, New York. He also holds a B.B.A.(Summa Cum Laude) in Finance & Investments from Bernard M. Baruch College, City University of New York, New York. He is the recipient of the “Baruch College Alumni Scholarship” and has been listed in the “Who’s Who on the Dean’s List”



Artex – founder profile Ashu is widely respected as an authority on Personal Finance,

Financial Markets, and Wealth Management in India and is the author of the “The Penguin Guide to Personal Finance” and the “The Penguin Guide to Winning on the Stock Market” published by Penguin Book

He has also written on Financial Markets and Personal Finance issues for magazines like Individual Investor and Savvy. He is widely quoted and interviewed in electronic and print media on Financial Markets, Personal Finance and Wealth Management issues.

Ashu is the Author of the soon to be published (Penguin), “Timeless Wisdom, Ageless Management”. The book is based on a 3 landmark Indian works on Statecraft, leadership, strategy and management. All these works date their history to a 1000 years but hold the same relevance for today’s leaders



geographical reachThe ArtExchange covers artists and artworks from the following

countries India China Thailand Malaysia Singapore Hong Kong Indonesia Philippines Vietnam Pakistan Bangladesh



contact informationAshu DuttCountry Head – India

The Art ExchangeIndia OfficeR-501, Remi BizcourtShah Industrial EstateOff Veera Desai RoadAndheri(West), Mumbai 400 053Email: [email protected]


mailto:[email protected]

http://www.artexchangeindia.com/