How to identify Emerging Artists

At Splint Invest, we recognize that navigating the art market requires a discerning eye and a deep understanding of emerging trends. To ensure our investors capitalize on the potential upside of investing in up-and-coming artists, we've partnered with Maddox, a renowned leader in art market analysis. Their expertise in identifying promising artists, coupled with their rigorous due diligence process, allows us to offer investment opportunities that could deliver substantial returns outperforming blue chip art.  

Consider the example of Albert Willem, whose paintings have seen a significant appreciation in value, as demonstrated by our own recent Exit of an Albert Willem painting. 

By partnering with Maddox, we aim to provide our investors access to similar emerging artists, offering the potential for exceptional returns while mitigating the higher risk associated with investing in emerging artists compared to blue chip artists. We also have a few examples of similar offerings to the Willem below in the article.  

Why Maddox Advisory? 

  Maddox has built a reputation for excellence in the art market, offering unparalleled insights and advisory services. Their team, led by CEO John Russo, brings decades of experience in art litigation, investment, and management of high-value transactions. John Russo’s extensive background in overseeing complex art deals, combined with a commitment to client service, sets the foundation for Maddox's robust due diligence process. Alongside him is Giovana Edid, Chief of Research at Maddox, whose expertise in market analysis and artist appraisal ensures that each artwork and artist is carefully vetted using data-driven techniques. 

Data-Driven Due Diligence 

Maddox employs a unique blend of human expertise and cutting-edge technology to evaluate emerging artists. Their proprietary research process integrates third-party databases with historical private sales data, market analytics, and econometric tools. This allows them to analyze key financial metrics like unsold rates, market capitalization, and price appreciation potential, all of which are critical when projecting the future value of an artist’s work. 

The Maddox team follows rigorous due diligence protocols, which include examining an artwork’s condition, sales history, financial returns, and even unique factors like exhibition history and geographical distribution of collectors. Their approach ensures that only the most promising artists, with strong market potential and low risk profiles, are selected for investment. 

Examples of Econometric Data:  

Mitigating Risk, Maximizing Potential 

The art world is notoriously volatile, with trends and tastes fluctuating rapidly. Maddox mitigates these risks by thoroughly evaluating each artist's career trajectory, auction performance, and market exposure. By analyzing the lifecycle of an artist—from the early stages of gallery representation to international exhibitions and auction debuts—Maddox can identify when an artist is most likely to experience growth and appreciate in value. 

Their process also includes an exhaustive review of authenticity, provenance, and legal standing. This means that every artwork undergoes a thorough verification process, protecting investors from counterfeit risks and ensuring that the pieces sourced are genuine and well-documented. 

If you want to mitigate risk but still profit from the growth of an up and coming artist, you still have the chance of investing in our Kaws offering. This Kaws Companion Chair from 2019 is a contemporary artpiece by a very well established artist that is still young and promising. His already incredible impact in the art world is the reason for the low risk rating. This asset is available now on Splint Invest. 

Building Trust Through Transparency 

Maddox’s commitment to transparency and ethical practices is central to their success. They adhere to the high standards of the Appraisers Association of America and their Uniform Standards of Professional Appraisal Practice (USPAP), ensuring that their valuations and appraisals are unbiased and objective. By focusing on both the qualitative and quantitative aspects of the art market, Maddox provides investors with clear, reliable insights into the potential returns of each investment. 

At Splint Invest, we are proud to have Maddox as our partner in sourcing and due diligence for contemporary art. With their expert guidance and thorough vetting processes, our investors can trust that they are making informed decisions backed by data, research, and years of industry experience. 

Why you should add Contemporary Art to your Investment Portfolio 

Contemporary art has become an increasingly attractive asset class for investors. Unlike traditional financial markets, which are often correlated and impacted by global economic trends, the art market can offer diversification benefits, as its value is driven by cultural factors, collector demand, and unique market dynamics. 

Emerging artists in particular, present an opportunity for significant appreciation as their careers evolve. Investing early in contemporary art allows investors to acquire works at relatively lower prices, with the potential for exponential growth as the artist gains recognition through exhibitions, gallery representation, and auction success. This combination of cultural relevance and financial potential makes contemporary art a compelling addition to any well-rounded investment portfolio.  

As shown by the graph below contemporary art can bring great returns. But it is important to have an expert partner to identify emerging artists with high upside potential correctly or you run the risk of losing money.  

The good news is that we have multiple curated offerings of promising contemporary art at Splint Invest. We have two unique offerings available 

Left: Adam Pendleton, Untitled, 2022. Right: Will Martyr, Today We Are Young, 2023. Both of these assets sport a high return rating as they are from qualified emerging artists and are available right now on your Splint Invest App.  

Conclusion 

Investing in up-and-coming artists offers exciting opportunities for growth, but it also comes naturally with higher risk and thus requires careful analysis and insight. Maddox brings the expertise, transparency, and data-driven approach needed to navigate this complex market, helping Splint Invest investors build a diverse and secure art portfolio. 

Contemporary art, especially from emerging artists, can provide both cultural relevance and significant financial potential, making it a compelling addition to any well-rounded portfolio.