Getting To The 'Art Of The Matter | Key Considerations For Using BVI Structures In Art-Secured Lending

The art finance market has seen an unprecedented boom in recent years, buoyed by changing perspectives amongst wealth management players and art collectors. Wealth managers increasingly see art as an integral part of any wealth management offering, while to art collectors, it is a valuable capital and investment asset.

The growth of the art-secured lending market has been accompanied by a parallel increase in the array of financial products and services specifically crafted for art collectors and dealers. Whilst the US sphere is dominated by private banks, auction houses such as Christie's and Sotheby's have also established finance arms. Loan facilities range in size and complexity – from the thousands to millions of dollars and from acquisition, personal loan, working capital, bridging, trade finance facilities to factoring and minimum price guarantee arrangements – often secured solely against portfolios of art.