Sotheby's claims a first with $700M securitization backed by art-secured loans

Sotheby's claims a first with $700M securitization backed by art-secured loans
Art financing unit announces groundbreaking milestone.
APR 18, 2024

The financing business of global art and luxury firm Sotheby’s has announced a first-of-its-kind securitization backed by art-secured loans.

Sotheby’s Financial Services helps owners of fine art, cars, collectibles, and other luxury collections to unlock liquidity in their assets though financing. The first issuance of its new securitization program is backed by $700 million of asset-backed notes, thought to include works by Rembrandt and Andy Warhol.

"This highly successful transaction, which saw strong demand from institutional investors resulting in a significant upsize to the transaction, will help further our mission of unlocking the power of our clients' collections through the delivery of innovative financial solutions,” said Ron Elimelekh, co-head, COO, and chief capital officer of Sotheby's Financial. “Now with over $2 billion of funding capacity, Sotheby's Financial has a flexible and committed funding framework supported by an existing credit facility and this groundbreaking securitization program."

The firm has originated more than $10 billion in loans since its inception and ended 2023 with portfolio growth of more than 100% over two years, and its highest ever portfolio balance.

"Our clients rely on Sotheby's Financial to provide dependable lending solutions, and today's news only furthers our commitment to enhancing our offerings to clients,” said Scott Milleisen, co-head, and global head of lending. “Thanks to our continued access to capital markets, we are the only lender in the marketplace who can consistently offer loans of up to $250 million underwritten based on the value of one's collection."

The securitization transaction is scheduled to close on April 23, 2024, subject to customary closing conditions.

Latest News

Five-person Raymond James team jumps to Janney in Maryland
Five-person Raymond James team jumps to Janney in Maryland

The group led by a 37-year industry veteran brings $470 million in assets to the Philadelphia-based broker dealer.

$20B Merit looks to next phase as Constellation takes minority stake
$20B Merit looks to next phase as Constellation takes minority stake

The Atlanta, Georgia-based national wealth firm revealed its new PE partner as prior backers Wealth Partners Capital Group and HGGC’s Aspire Holdings exited their investments.

$350M father-son duo hops from Osaic to Equitable Advisors
$350M father-son duo hops from Osaic to Equitable Advisors

The latest departures in Ohio mark another setback for the hybrid RIA, which is looking to "expanding its presence across all models and segments of the wealth management industry.”

Fresh off HPS acquisition, BlackRock inks deal for $7.3B ElmTree Funds
Fresh off HPS acquisition, BlackRock inks deal for $7.3B ElmTree Funds

The St. Louis-based real estate investment firm gives the asset management giant a valuable access point to the roughly $1 trillion net lease market.

SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees
SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees

Eliseo Prisno, a former Merrill advisor, allegedly collected unapproved fees from Filipino clients by secretly accessing their accounts at two separate brokerages.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.