Building Art Collections as a Family Legacy

Building an art collection serves not only as an investment and overall asset diversification, but also as a way of creating and preserving a legacy. Although traditionally dominated by high-net-worth males, the art industry is now seeing an increasing number of female collectors who are responsible for a significant share of the market. In the past two years, 34 per cent of female collectors spent more than $1 million versus 25 per cent of male collectors. And in the first half of 2021, as the industry was bouncing back from the Covid-19 pandemic, spending by female collectors increased by over one-third compared with just 9 per cent for their male counterparts. On this episode of Women in Family Business, Paola Matallana González discusses the process of building an art collection and taking it from private to public, including some of the common challenges faced and how they are best overcome. She also outlines the importance of encouraging the next generation of art collectors to share their collections, and passes on her advice to those who are uncertain how to start building their collection and creating their legacy. Key takeaways: “Art doesn’t belong to us; we are just custodians of it.” The next generation of art collectors should take time to understand who they are and the direction in which they want their collection to go. Pick a theme and be strict with it, so that all the pieces in the collection are in harmony and dialogue with one another. “Sustainability is a very important democratization of art.” Collecting art to make a profit can now be tied in with important issues such as sustainability. The focus is using education to start a shift to making the right profit, not just any profit. The next generation of art collectors should listen to their heart and explore their passion. Mentoring is crucial – ensure these are people outside your immediate family that you trust and admire.