Alternative investments: between wealth and passion event highlights

Thank you to everyone who joined us for our event “Alternative investments: between wealth and passion”. The evening, maxed out in attendance, featured a panel discussion with Emilia De Stasio, Co-founder and COO at Artscapy; Andrew Shirley, Head of Luxury Research at Knight Frank; Piero Grieco, a seasoned private equity investor, moderated by Kristina Pereckaite, the Managing Director of South East Angels. Drawing from their extensive experience across art, luxury assets, and startups, each speaker offered valuable insights into their respective domains and how to get started, how to build a portfolio, and what to look out for.

Here are some highlights from the event:

Emilia De Stasio: Art Investment Demystified

“Art is the only asset that has the power to yield twice: on our walls and in our wallets.”
 
Value of Art: One of the biggest benefits is the cultural enrichment and intellectual  stimulus  that comes with owning and appreciating art. Unlike stocks or bonds, art is something tangible that you can enjoy every day. It enhances your mind and your living space, providing a constant source of inspiration and beauty. Additionally, there's the benefit of actively supporting artists and cultural production. You're not just investing in an asset; you're contributing to the creative ecosystem and preserving cultural heritage for future generations.
 
Unbiased Support: The art market isn’t easy to navigate and managing an art portfolio requires specialist services and support. Unfortunately, the market is beleaguered with sellers who have a tendency to employ misleading tactics and promise quick returns on inflated prices to sell their inventory. This is why accessing objective information and unbiased portfolio building support is very important. That can be achieved through time and resource intensive research or through the use of a service like Artscapy which offers unbiased and transparent support to its clients. Furthermore, given the physical nature of art as an asset, ensuring its secure storage, along with appropriate documentation and proper care, are essential aspects for maintaining its value over time.
 

Andrew Shirley: Insights into Luxury Collectibles

"You must exercise keen awareness when navigating this sector, as it is rife with unscrupulous individuals trying to take advantage of unsuspecting investors."

 

Unquantifiable returns: Beyond the potential financial returns, investing in luxury collectibles offers a lifestyle element that can't be easily quantified. It's about surrounding yourself with objects of beauty and craftsmanship that bring joy and prestige. Owning a rare piece of artwork, a vintage car, or a fine bottle of whiskey is a statement of taste and discernment. It's about curating a collection that reflects your personality and interests, and that can be immensely satisfying. Moreover, there's the social aspect of collecting, connecting with fellow enthusiasts, attending exclusive events, and being part of a passionate community.

Caution against hype-driven investments: One of the main risks with investing in luxury collectibles is the potential for price volatility and market fluctuations. Collectible values can be highly subjective and influenced by changing consumer preferences and economic conditions. There's also the risk of counterfeit or inauthentic items, particularly with luxury brands that are highly sought after. Investors need to be diligent in verifying the authenticity and provenance of collectibles before making a purchase. There's also the risk of depreciation or damage, especially with items that require maintenance or preservation, such as fine wines and spirits.

 Piero Grieco: Navigating the Startup Space

"Investing in a startup is really investing in the people."

 

Start with a network: Accessing and building your investment model can be greatly enhanced by exploring personal interests and engaging with angel networks. While initially starting with online platforms and investing in companies without much knowledge, Piero shared that he quickly realised the importance of learning from others and relying on a supportive network. In hindsight, leveraging the expertise of others significantly reduces risk and enhances enjoyment in the investment process. Communities like the South East Angels, a highly engaged and supportive angel investment network, is a prime example that made a material difference for Piero.

Risk management is paramount: When it comes to investing in startups, it's essential to have a clear understanding of your risk tolerance and to diversify your portfolio accordingly. Don't put all your eggs in one basket by over indexing your startup portfolio too much into one company. Informed and risk-reduced investment decisions can be made by assessing the business traction and whether there are things like proprietary technology and/or patents in place. Having a solid, methodological due diligence approach to analysing startups is vital.

Navigating Alternative Investments

Alternative investments offer unique opportunities for diversification and potentially very attractive  returns, but they also come with inherent risks. Whether you're investing in startups, art, or luxury collectibles, thorough research, due diligence, and risk management are essential. The participants at this evening’s event walked away with new insights and shared our enthusiasm for the world of alternative investments.

In case you missed out, following popular demand, Emilia and Kristina are creating a new similar event to share the ins- and outs of alternative investments in Brighton on the 17th of April. For more information and to request a spot on the guest list, see here.

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