Suros Capital has seen an increase in loans secured against fine art and saw a 50% increase in applications for art funding this year, with 35% of its overall loan portfolio currently secured against fine art.
Contemporary works by Banksy, Andy Warhol, Pablo Picasso and Tracey Emin, as well as a few old master paintings, have been used as collateral for loans which typically start at over £ 100,000.
According to Suros Capital Business Development Director Charles Hodge, in addition to borrowing from private HNW clients for personal reasons, Suros Capital also supports art dealers and gallery owners in their cash flow, offering both purchase and sale financial services.
Suros Capital’s registered intermediary base has doubled since March
He said: “There are many reasons why an owner of an artwork may want to borrow against the value held in his collections. After all, much of their wealth may be locked away in valuable works of art, and they may want to use that capital for different business or personal purposes, without disposing of the piece or collection.
“The benefits of working with Suros Capital are already well known to a number of fine art intermediaries, who have referred clients to us since our inception. However, financial advisers and wealth managers who understandably lack knowledge of the fine art market and the benefits offered by art lending, may mean that art lending solutions are not available. often not recommended to clients as widely as they could be.
Ray Palmer, Director of Suros Capital, added: “As a result, many HNW clients, including individuals, dealers and galleries, often find it difficult to access funds, which ultimately impacts their ability. to grow their business and overcome liquidity issues.
“However, specialist lenders such as Suros Capital tend to offer a faster, simpler approach and less stringent requirements, which means that capital can often be released much faster.”