Aude Lemogne, the co-founder of «Link. Management» and former trader in New York, discusses the significant shifts in the art market since 2009 in an interview with finews.art.
Aude Lemogne, how did you come up with the idea of founding «Link. Management?»
My co-founder Aymeric Thuault and I started our careers in financial markets in Singapore, New York, and London. After the financial crisis in 2009, we anticipated significant shifts in asset diversification that would benefit the art market. Our goal was to integrate the traditional practice of art assessment with a more technical approach focused on due diligence and market trend analysis.
Why the name «Link. Management?»
The concept of acting as a «link» appeals to us. We serve as an interface between our clients' inclinations and the vast art world. Additionally, we recognize parallels between different markets driven by supply and demand. For example, momentum trading in the ultra-contemporary market has mirrored the psychological triggers seen in cryptocurrency markets.
What services does your company offer?
We guide private and corporate collectors in building their art collections. Our base is in Luxembourg. Over the past decade, we have established numerous modern, post-war, and contemporary art collections for both corporate and private clients. Our services include due diligence, market analysis, and comprehensive handling of art acquisitions, including shipping and installation.
«Two changes stand out: the growth of the contemporary art market and the increased demand for the ultra-contemporary segment»
Since 2017, through «Griffin Art Partners», we also offer art-backed loans that provide liquidity without selling artworks. Our goal is to offer access to high-quality works at the best possible price while emphasizing that art values can rapidly shift, especially given the changing profiles of collectors.
What significant changes have occurred in the art market since 2009?
Two major changes stand out: the tremendous growth of the contemporary art market and the increased demand for the ultra-contemporary segment. In 2022, ultra-contemporary artists generated 2.7 percent of global fine art auction turnover, compared to 0.5 percent in 2002.
Artists like Flora Yukhnovich and Matthew Wong have achieved auction prices of several million dollars. For instance, Yukhnovich's work sold for $3.6 million in March 2022, far exceeding its high estimate of 267,000 dollars, representing a multiple of 13.5. Similarly, Wong's work fetched $5.9 million in May 2022.
How has inclusion and diversity evolved in the art market?
The rebalancing of art history to favor women and artists of color has been a profound shift. Especially in the ultra-contemporary segment, female artists have recently been more successful and highly valued at auctions.
«Rising costs of money are impacting the market, shifting spending priorities»
Collectors have shown remarkable enthusiasm for contemporary female artists like Christine Ay Tjo, Shara Hughes, Maria Berrio, Christina Quarles, Lucy Bull, and Flora Yukhnovich.
This conscious and engaged valorization of women artists is accompanied by a broader acceptance of art created by marginalized communities, including Indigenous, Black, People of Color (IPOC), and LGBTQ+ artists. These narratives resonate with Next Gen and Millennial collectors, reflecting their social, political, and formative experiences.
Where do you see trends in the art market heading?
Rising costs of money are impacting the market, shifting spending priorities. The correction started with emerging artists and is now affecting established ones. The 'weakest link' has been the young emerging art scene, which had been driven by speculative buying.
For example, Lucien Smith, once a rising star, saw auction results of around $400,000 for works appraised at $65,000 to $100,000 during the peak of speculative buying, a multiple of roughly six times. However, in 2022-2023, the ultra-contemporary market saw much higher multiples.
Two trends to watch are carbon footprint considerations, which might reduce the appeal of mega-installations and Uber-artworks, and the value of second-tier works by second-tier artists, which are unlikely to constitute a great store of value.
«Art remains a high-cost, long-term asset»
Over the next 20 years, many collections amassed over the past 40 years will come to the market, likely with a bulk of lesser-quality works. Millennials, who are the upcoming peak earners, may show less interest in older art periods, already evidenced by a reduced interest in certain segments of Modern Art.
How do you advise your clients in this changing environment?
We work closely with selected long-term clients, offering market analysis, access to key information, and competitive sourcing of quality artworks.
It's essential to have a deep understanding of a collector’s natural inclinations and to gently expand their receptivity to new art forms or narratives outside their comfort zone. Access to market-moving information is crucial, as the art market remains an environment with asymmetric information flow.
How do you assess art as an asset class?
Art can act as wealth preservation and an inflation hedge but requires a strategic acquisition approach and market timing. Art remains a high-cost, long-term asset. Top auction houses only sell proven names, meaning many artists lack auction presence and liquidity.
Art doesn't always appreciate; a targeted acquisition strategy is essential for value appreciation and security. A convergence of factors like excessive liquidity and the search for yield in a low interest rate environment has generated higher interest in art as an appreciating asset.
However, understanding trends driving up certain artists' prices is vital due to shortened price cycles.
How do your art loans work, and who benefits from them?
Through «Griffin Art Partners,» we offer art-backed loans that provide liquidity without selling artworks. Collectors can even keep their artworks at home in some jurisdictions.
These loans offer financial flexibility and the opportunity to leverage value appreciations without sacrificing future gains. Many collectors use these loans to acquire new artworks, making them a new source of financial adaptability.
Aude Lemogne, co-founder of «Link. Management» Luxembourg in 2009, graduated from HEC Paris with a Master’s degree in Finance and studied Art History at Lille-III University. She has been assisting financial institutions in integrating art into their asset allocation. Recognized as a preferred art advisor for private banks, she supports high-net-worth individuals in managing their collections. She has built a network of art experts to perform due diligence and provide appraisals, from Impressionism to Contemporary art. Previously, she was a proprietary trader and senior sales specialist in New York and London for eight years. She is also on the Board of Directors of Axa Wealth Europe.
