For centuries art was collected for its cultural, emotional, intellectual, political and economic value. 
 
Nowadays, collectors and investors turn to art for the benefits it offers such as asset protection, wealth preservation, portfolio diversification, low correlation with financial markets, profitability and other hedging possibilities in addition to its emotional and aesthetic qualities.

According to the Wealth Report 2023 of Knight Frank, the asset category art increased by 29% in 2022 and 91% over the last 10 years.

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Key factors for art as an investment:

Market Size 
The total market value of sales was estimated around $65 billion in 2021.&nbsp;

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Market Growth 
The $2.1 trillion global marketplace for art and collectibles will reach a forecasted $2,9 trillion by 2026.

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Trends 
Many auction houses and galleries shifted online. This has brought younger buyers to the market. Investors in general have increased their interest in art. As a result, the contemporary art market is setting a new trend for the future of art as an investment.

Name

Artist

Publication year

Size

Number of editions

Signature

Material

Splint Invest Platform Fee 
Compensation for the tokenization of the assets, the maintenance as well as the further development of the application and the costs related to the research and maintenance of the expert network. 
 
External maintenance costs 
We are committed to providing the highest standards of storage, maintenance and insurance of your equipment on your behalf. The associated costs will be shared between the splint holders and included as an ongoing cost in relation to each asset. So if you own 1% of a bottle of an art piece, your splint account will be charged 1% of the associated costs. Further details and breakdowns are listed in the factsheet for each investment. 
 
Exit fee 
When you sell an investment, you will be charged a flat fee of 2% of the transaction volume. This includes our expenses for sales on the secondary market, our costs for maintaining this market and our organisation of an asset sale at the end of the contract.

Valuation Summary 📝

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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 🚪

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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? 🎨

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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? 💎

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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. <a href="https://www.artsy.net/artist/duncan-mccormick/auction-results?hide_upcoming=false&amp;a[…]&amp;include_unknown_prices=true&amp;allow_unspecified_sale_dates=true">Recently, his art has commanded impressive prices at auctions</a>, 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 ⏳

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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 🎯

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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.

The price of 64,250 € includes the Splint Invest platform fee and external maintenance costs of 4,000 €. 60,250 € can be allocated to the asset. 
Platform Fee Splint Invest: Compensation for the tokenization of the assets, the maintenance as well as the further development of the application and the costs related to the research and maintenance of the expert network. 
External maintenance costs: Shipping, handling, as well as storage and insurance over the whole investment horizon.

Variable Costs

Hedley's, 3 St Leonard's Road, North Acton, London NW10 6SX

40796_Duncan Robert McCormick_Summer Lawn_2024

The average auction results over the last two years for same-size paintings of this artist is at 148k EUR, which is 2.5 times higher than our purchase price.

Return

The Knight Frank 2024 index reveals that art has experienced a 105% increase in value over the past decade. 
 
Twenty-one of McCormick's works have been auctioned in the past two years, achieving more than nine times the average estimate. When his cityscapes are featured in a major museum exhibition, it will establish significant provenance, further contributing to the stability of his artwork's prices.

Stability

This is a work from his most recent 2024 series. Due to the high demand, we were only able to secure one so far.

Duncan Robert McCormick, Summer Lawn, 2024

Duncan McCormick is an artist known for crafting intentionally upbeat pieces, often drawing inspiration from what he describes as "long-cherished dreams" or "nostalgic childhood holiday memories." Recently, his earlier works were auctioned by Sotheby's, commanding winning bids in 2023 that surpassed their estimated value by an average of close to 10-fold. He's being acclaimed as the upcoming David Hockney.

Track Record

The art investment advisors of Maddox bring together years of specialist knowledge and practical experience with objective market analysis to offer their clients quality advice and consistent returns. 
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The art investment advisors of Maddox bring together years of specialist knowledge and practical experience with objective market analysis to offer their clients quality advice and consistent returns. 
 
Maddox is known for their sincere enthusiasm, critical thinking, innovative insights and global savoir-faire. A dedicated art advisor will start by understanding the particular goals, interests and passions, which will direct the individual investment path. 
 
The advisor will also account for the investments time frames, acquisition objectives, risk tolerance and personal preferences. Whether one is looking to acquire a Banksy or a Basquiat, a Haring or a Warhol, the team will make sure one finds the right artwork. 
 
From sourcing to selling, the advisor will always provide up-to-date and detailed market analysis and professional guidance throughout the process. Maddox will help to build an art portfolio, manage a collection, value it, decide on a holding period and exit strategy, and finally, make sure to get the most out of the investment.

Maddox Advisory

This is an investment opportunity where we have recalculated the expected performance given by the external expert (Maddox Advisory) and have thus verified that a positive return can be expected after deduction of all costs for storage and insurance.

Furthermore, we have verified the existence, the professional storage and the insurance of the artwork.

Duncan Robert McCormick, Summer Lawn, 2024

Asset's Life Cycle Details

Storage location

Asset ID

Token terms

Expert

Category

Status

Total number of Splints

Date of issuance (launch)

Issue price per Splint

Investment horizon in years

Time period for the divestment

Documents

Aurelio

Do you have questions?