Duncan Robert McCormick, Summer Lawn, 2024

Valuation Summary 📝

To ensure the competitiveness of the investment, we conducted a thorough verification of the purchase price by analyzing recent gallery transactions and current auction results. Our analysis confirmed that the price offered, inclusive of all associated fees, is still highly competitive. To estimate the potential ROI, we used the average auction results of same-sized paintings by Duncan Robert McCormick and compared them to the purchase price. For our conservative scenario, we assumed the value of the painting would grow at the rate of Swiss inflation, reflecting a defensive approach. In the balanced scenario, we calculated the average growth of the painting taking into account the average auction results, and then discounted it by 40% to account for the risk of not replicating past auction results. Finally, in the ambitious scenario, we applied 100% of the average auction results for same-sized paintings over the last two years compared to our purchase price, reflecting an optimistic outlook that assumes the painting will continue to appreciate in line with its historical trend.

Exit Options at Maturity 🚪

We will manage the exit strategy on behalf of our investors, ensuring the best possible outcome based on market conditions at the time. Depending on the prevailing market situation, the painting will be sold to a private collector or offered as a single lot at an auction for contemporary art. An auction is considered if the price has developed to the point where the minimum bid matches the market value and there is high demand for works by the artist. Both options are carefully considered, and we will choose the one that maximizes the return for our investors.

Why Invest in This Category? 🎨

For centuries art was collected for its cultural, emotional, intellectual, political, and economic value. Investing in emerging artists offers a mix of financial potential and personal satisfaction, making it an appealing option for both new and seasoned collectors.

Why Invest in This Asset? 💎

Most recently, McCormick was commissioned by a prominent museum group to paint city skylines for the locations where their institutions are based. This will greatly enhance the provenance of his paintings, as they will be seen by thousands of visitors each week.

Throughout his career, McCormick has harmonized his artistic pursuits with his need for livelihood. Initially, he worked in theater before establishing himself as a professional printmaker, equipped with his own silk-screen press. His works now grace prestigious private and corporate collections, including a commission from Morgan Stanley in 2018 for a series of 11 paintings displayed in their Canary Wharf offices. Recently, his art has commanded impressive prices at auctions, drawing bidders from Taiwan, Turkey, Hong Kong, Europe, and America. Influenced significantly by the renowned David Hockney, McCormick's style is poised to evolve into similarly iconic spheres, making his artworks a promising investment opportunity.

Context in Time ⏳

Emerging artists often sell their works at more affordable prices compared to established names. If the artist gains recognition over time, the value of their art can increase significantly, offering substantial returns on your investment.

Conclusion 🎯

Investing in McCormick's art is not just about a cultural contribution—it's about making a strategic financial decision. With projected returns that could reach up to 57.1% annually, this asset offers a blend of passion and profit that is hard to match.