Two New Art Related Businesses

The NY Times is reporting two new art related business. The first, called Art Compliance Company will perform due diligence on the title of art works, review provenance and vet buyers if necessary.  The second new company, Art Recovery International will search out stolen and missing art.

The NY Times reports

Sensing a business opportunity in the opaque marketplace of the art world, a fledgling company wants to offer the due diligence services common in corporate America to the buyers and sellers of Picassos, Warhols and Gerard Richters.

The Art Compliance Company, begun by Marion Maneker, an editor and publisher who created the Art Market Monitor news service, and K2 Intelligence, a risk analysis and investigative company, will determine clear title on works, investigate their provenance and vet any prospective business partners, its owners say.

“The value of art is skyrocketing,” said Mr. Maneker, pointing out that the global market topped $58 billion in 2012. “You can’t treat this as a purchase on impulse.”

The pitfalls of a marketplace run in large part on trust are on display in the travails of Knoedler & Company. That gallery, one of the most venerable in the country, closed suddenly in November 2011 and is being sued by high-powered clients for selling dozens of fake paintings that were ostensibly by Modernist masters like Jackson Pollock and Robert Motherwell.

Mr. Maneker said buying art has become a more complex process. New, less well-known buyers are emerging from countries that were previously not major players in the market, and lawyers can find vetting too expensive or time-consuming to do themselves. Some scholars, worried about being sued, have been pulling back from authenticating works.

“People in this industry could use a little more security,” said Jeremy Kroll of K2 Intelligence, which he operates with his father, Jules Kroll, formerly of Kroll Inc. K2 is a minority owner and is contributing its investigative resources to the new venture.

John R. Cahill, who represents one of the former Knoedler clients, said, “While there’s probably no complete panacea, given the increased criminal and quasi-criminal activity in the market, it’s good have to someone doing due diligence.”

“It will take some getting used to in the market,” he added, “because it’s a market that prizes discretion.”

A second new company to offer services in the art market in recent weeks is Art Recovery International, which i s operated by Christopher A. Marinello.

Mr. Marinello is the former general counsel of the Art Loss Register, which maintains a database of stolen art. The Register earns fees for tracking missing art or for helping buyers ascertain whether a work up for sale has been reported stolen.

Mr. Marinello’s company is based in London, like The Register, and also specializes in tracking down and returning stolen and missing art. Mr. Marinello said he plans to eventually start his own database.

Source: The NY Times