Art
Billionaire Financier Thomas H. Lee’s Heirs Are Selling His Art Privately After His Suicide. Public Filings Show He Leveraged the Heck Out of It, Too – artnet News
Deaths of key collectors are propelling scores of blue-chip art to the market.
The Art Detective hears that the $500 million Emily Fisher Landau estate, so far the biggest prize of the upcoming season, will go to Sotheby’s for an auction led by Pablo Picasso’s large-scale 1932 portrait of Marie-Therese Walter. (A Christie’s representative said that the group “is definitely not going to Christie’s as of right now”; Sotheby’s said “there is nothing to share at this time.”)
There’s also the estate of Bay Area art patron Chara Schreyer, with a gorgeous Frank Stella, going under the hammer, as well as a smaller group by postwar masters Willem de Kooning, Richard Diebenkorn, and Franz Kline consigned by San Francisco collector Sanford Robertson in the wake of his wife’s death in 2018.
But one significant collection isn’t heading to auction. The heirs of the financier Thomas H. Lee, who shot himself in February, have decided to sell things privately.
Lee began amassing postwar and contemporary paintings, photographs, sculptures in the 1990s after brilliantly flipping soft-drink company Snapple, which he acquired for about $135 million in 1992 and resold for $1.7 billion two years later. Armed with about $927 million, Lee jumped into the art world as a both a buyer and a philanthropist, frequenting auction salesrooms and joining the Whitney Museum of American Art’s board of trustees (where he served for 29 years).
Thomas H. Lee and Ann Tenenbaum’s Sutton Place apartment photographed during an event in 2019. Works by Ellsworth Kelly, Donald Judd, Mark Rothko, Fred Eversley, and Andy Warhol are on view. Photo by Matteo Prandoni/BFA.com ©BFA 2023.
Canvases by Mark Rothko, Roy Lichtenstein, Jackson Pollock, and Francis Bacon hung in the Sutton Place apartment Lee shared with his second wife, Ann Tenenbaum. A monumental 1964 blue-and-red canvas by Ellsworth Kelly was promised as a gift to the Whitney and a collection of photographs to the Metropolitan Museum of Art.
Some of Lee’s most valuable works have been offered for sale privately in recent months, according to dealers, advisers, and auction specialists. The family is said to be working with the art dealer Jeanne Greenberg Rohatyn, a friend of Tenenbaum’s, as well as the advisers Amy Cappellazzo and Andrew Ruth, the latter of whom had a long working relationship with Lee.
The way the heirs are going about things has puzzled some market onlookers.
“It was an up-for-grabs kind of thing,” said a major art adviser. “And it was confusing to someone like me to be talking to different dealers about the same pictures.”
Bacon’s small Study of Gerard Schurmann was spotted in a private viewing room at LGDR gallery in April, when it opened its new gallery on East 64th Street. Greenberg Rohatyn worked there as the “R” in the title until splitting off last week.
Other works on offer included: Warhol’s 1963 5 Deaths Twice 1 (Red Car Crash), Pollock’s 1949 Number 22, Rothko’s nearly eight-foot-tall Olive Over Red (1956), Jean-Michel Basquiat’s 1982 oilstick drawing, and an untitled 1969 Donald Judd wall piece of brass and aluminum.
Thomas Lee and Ann Tenenbaum in New York City, 2019. (Photo by Mike Coppola/Getty Images for Film at Lincoln Center)
Tenenbaum didn’t respond to the Art Detective’s email seeking comment. A representative said she wasn’t available.
“Tom Lee used leverage as a vehicle,” said a person familiar with her thinking. “And Ann Tenenbaum doesn’t work like that. It makes sense that she would sell the art whether she had to or not.”
She may have decided to try selling art privately to avoid public scrutiny and speculation about the cause of her husband’s suicide, several art world people said.
The auction schedule apparently didn’t work in her favor either, according to the person familiar with her thinking. May was too close and November too far off, the person said.
Meanwhile, the art market has experienced a dramatic shift in real time; prices that seemed reasonable in March suddenly appeared “aspirational,” according to one person who was offered some works but chose not to make any bids.
Word on the street is that works by Pollock (said to be worth about $40 million in March), Warhol (said to be worth $15 million to $20 million in March), and Basquiat (said to be worth about $7 million now) have sold.
Over the years, scores of Lee’s artworks have been listed as collateral for bank loans, according to public filings reviewed by the Art Detective. These documents offer a rare glimpse into his formidable collection—as well as how the sophisticated leveraged-buyout pioneer put it to work for himself as a financial tool.
The earliest available filing dates to 1995 when Lee began borrowing from Citibank, the first financial institution to offer art lending to its ultra-wealthy clients. (The paperwork lists the collateral as “consumer goods, consisting of paintings, drawings, sculpture and other works of art and decorative objects of every kind and nature.”)
Andy Warhol, 5 Deaths twice 1 (Red car crash) (1963). Courtesy of Sotheby’s.
The timing of the loan suggests, remarkably, that Lee began unlocking value from his art holdings almost immediately after he began collecting.
Later, in 2004, the Citibank filings listed 65 artworks, an impressive group of names ranging from modernists Piet Mondrian, Juan Gris, and Claude Monet to pioneering photographers Edward Weston, Alfred Stieglitz, and Diane Arbus. He had three works by Jasper Johns, four by Lichtenstein, two Pollocks and two Gerhard Richters.
That same year, Lee took a loan from HSBC Bank USA backed by another 54 artworks, mostly on paper, including an etching by Rembrandt, a gouache by Georgia O’Keeffe, the 1982 Basquiat, and a 1971 Cy Twombly.
During the financial crisis of 2008, Lee augmented that line of credit with higher-value works that included Pastorale, a 1963 painting by de Kooning, and the aforementioned 5 Deaths Twice 1 (Red Car Crash) by Warhol and Study of Gerard Schurmann by Bacon.
Jeff Koons, Jim Beam – J.B. Turner Train (1986) stainless steel and bourbon. Courtesy: Christies.
Around the same time, the financier also sold art to generate cash, according to the adviser who Lee asked “to take what you want” from the collection. Several works by Lichtenstein, Richter, Koons, and Polke were removed from Lee’s collateral pool in 2008-2009, suggesting they were sold. One of his top pieces was the Jim Beam Turner Train by Koons. At the time, those in the know said that the royal family of Qatar bought the work.
Perhaps the largest deal of this kind came toward the end of Lee’s life, when he got a $100 million loan from Bank of America backed by $200 million worth of art, according to a person familiar with the deal. A representative for Bank of American declined to comment.
Now, the haste to sell off Lee’s art is likely because his heirs want to pay off their debt sooner rather than later due to increased interest rates, which have doubled or even tripled investors’ debt burdens over the past year.
“You pay off a loan when you don’t want to have that much debt,” said the major art adviser. “You want to clean up the balance sheet. It’s good housekeeping.”
Follow Artnet News on Facebook:
Want to stay ahead of the art world? Subscribe to our newsletter to get the breaking news, eye-opening interviews, and incisive critical takes that drive the conversation forward.
Art
Calvin Lucyshyn: Vancouver Island Art Dealer Faces Fraud Charges After Police Seize Millions in Artwork
In a case that has sent shockwaves through the Vancouver Island art community, a local art dealer has been charged with one count of fraud over $5,000. Calvin Lucyshyn, the former operator of the now-closed Winchester Galleries in Oak Bay, faces the charge after police seized hundreds of artworks, valued in the tens of millions of dollars, from various storage sites in the Greater Victoria area.
Alleged Fraud Scheme
Police allege that Lucyshyn had been taking valuable art from members of the public under the guise of appraising or consigning the pieces for sale, only to cut off all communication with the owners. This investigation began in April 2022, when police received a complaint from an individual who had provided four paintings to Lucyshyn, including three works by renowned British Columbia artist Emily Carr, and had not received any updates on their sale.
Further investigation by the Saanich Police Department revealed that this was not an isolated incident. Detectives found other alleged victims who had similar experiences with Winchester Galleries, leading police to execute search warrants at three separate storage locations across Greater Victoria.
Massive Seizure of Artworks
In what has become one of the largest art fraud investigations in recent Canadian history, authorities seized approximately 1,100 pieces of art, including more than 600 pieces from a storage site in Saanich, over 300 in Langford, and more than 100 in Oak Bay. Some of the more valuable pieces, according to police, were estimated to be worth $85,000 each.
Lucyshyn was arrested on April 21, 2022, but was later released from custody. In May 2024, a fraud charge was formally laid against him.
Artwork Returned, but Some Remain Unclaimed
In a statement released on Monday, the Saanich Police Department confirmed that 1,050 of the seized artworks have been returned to their rightful owners. However, several pieces remain unclaimed, and police continue their efforts to track down the owners of these works.
Court Proceedings Ongoing
The criminal charge against Lucyshyn has not yet been tested in court, and he has publicly stated his intention to defend himself against any pending allegations. His next court appearance is scheduled for September 10, 2024.
Impact on the Local Art Community
The news of Lucyshyn’s alleged fraud has deeply affected Vancouver Island’s art community, particularly collectors, galleries, and artists who may have been impacted by the gallery’s operations. With high-value pieces from artists like Emily Carr involved, the case underscores the vulnerabilities that can exist in art transactions.
For many art collectors, the investigation has raised concerns about the potential for fraud in the art world, particularly when it comes to dealing with private galleries and dealers. The seizure of such a vast collection of artworks has also led to questions about the management and oversight of valuable art pieces, as well as the importance of transparency and trust in the industry.
As the case continues to unfold in court, it will likely serve as a cautionary tale for collectors and galleries alike, highlighting the need for due diligence in the sale and appraisal of high-value artworks.
While much of the seized artwork has been returned, the full scale of the alleged fraud is still being unraveled. Lucyshyn’s upcoming court appearances will be closely watched, not only by the legal community but also by the wider art world, as it navigates the fallout from one of Canada’s most significant art fraud cases in recent memory.
Art collectors and individuals who believe they may have been affected by this case are encouraged to contact the Saanich Police Department to inquire about any unclaimed pieces. Additionally, the case serves as a reminder for anyone involved in high-value art transactions to work with reputable dealers and to keep thorough documentation of all transactions.
As with any investment, whether in art or other ventures, it is crucial to be cautious and informed. Art fraud can devastate personal collections and finances, but by taking steps to verify authenticity, provenance, and the reputation of dealers, collectors can help safeguard their valuable pieces.
[unable to retrieve full-text content]
Ukrainian sells art in Essex while stuck in a warzone BBC.com
Source link
The Courtauld Gallery at Somerset House has reopened its doors to the public after a fire swept through the historic building in central London. While the gallery has resumed operations, the rest of the iconic site remains closed “until further notice.”
On Saturday, approximately 125 firefighters were called to the scene to battle the blaze, which sent smoke billowing across the city. Fortunately, the fire occurred in a part of the building not housing valuable artworks, and no injuries were reported. Authorities are still investigating the cause of the fire.
Despite the disruption, art lovers queued outside the gallery before it reopened at 10:00 BST on Sunday. One visitor expressed his relief, saying, “I was sad to see the fire, but I’m relieved the art is safe.”
The Clark family, visiting London from Washington state, USA, had a unique perspective on the incident. While sightseeing on the London Eye, they watched as firefighters tackled the flames. Paul Clark, accompanied by his wife Jiorgia and their four children, shared their concern for the safety of the artwork inside Somerset House. “It was sad to see,” Mr. Clark told the BBC. As a fan of Vincent Van Gogh, he was particularly relieved to learn that the painter’s famous Self-Portrait with Bandaged Ear had not been affected by the fire.
Blaze in the West Wing
The fire broke out around midday on Saturday in the west wing of Somerset House, a section of the building primarily used for offices and storage. Jonathan Reekie, director of Somerset House Trust, assured the public that “no valuable artefacts or artworks” were located in that part of the building. By Sunday, fire engines were still stationed outside as investigations into the fire’s origin continued.
About Somerset House
Located on the Strand in central London, Somerset House is a prominent arts venue with a rich history dating back to the Georgian era. Built on the site of a former Tudor palace, the complex is known for its iconic courtyard and is home to the Courtauld Gallery. The gallery houses a prestigious collection from the Samuel Courtauld Trust, showcasing masterpieces from the Middle Ages to the 20th century. Among the notable works are pieces by impressionist legends such as Edouard Manet, Claude Monet, Paul Cézanne, and Vincent Van Gogh.
Somerset House regularly hosts cultural exhibitions and public events, including its popular winter ice skating sessions in the courtyard. However, for now, the venue remains partially closed as authorities ensure the safety of the site following the fire.
Art lovers and the Somerset House community can take solace in knowing that the invaluable collection remains unharmed, and the Courtauld Gallery continues to welcome visitors, offering a reprieve amid the disruption.
Looking for the next mystery bestseller? This crime bookstore can solve the case
Labour Minister praises Air Canada, pilots union for avoiding disruptive strike
Armstrong scores, surging Vancouver Whitecaps beat slumping San Jose Earthquakes 2-0
12 Bizarre Things People Did Just To Make Social Media Content
AP source: Bears acquiring quarterback Nick Foles from Jaguars – Sportsnet.ca
dynaCERT Inc. Invites You to Join Us at the Vancouver Resource Investment Conference | INN – Investing News Network
-
Sports24 hours agoCavaliers and free agent forward Isaac Okoro agree to 3-year, $38 million deal, AP source says
-
Sports24 hours agoLiverpool ‘not good enough’ says Arne Slot after shock loss against Nottingham Forest
-
News24 hours agok.d. lang gets the band back together for Canadian country music awards show
-
Sports8 hours agoArmstrong scores, surging Vancouver Whitecaps beat slumping San Jose Earthquakes 2-0
-
News24 hours agoNATO military committee chair, others back Ukraine’s use of long range weapons to hit Russia
-
News24 hours agoWith a parade of athletes on Champs Elysées, France throws one last party for the Paris Olympics
-
News8 hours agoAs plant-based milk becomes more popular, brands look for new ways to compete
-
News24 hours ago‘Challenges every single muscle’: Champion tree climber turns work into passion
