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Leveraging Art Collections During a Divorce

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Attorneys often need creative solutions for clients who may be seeking liquidity for expenses incurred during mediation and/or divorce proceedings. Many assets can be used for a secured loan, including works of art. 

Art-secured lending allows your clients to access capital while simultaneously affording them the luxury of time so that they do not feel pressured into selling their artwork under suboptimal conditions.

Art-secured lending has been growing in popularity in recent years. A 2021 report from Deloitte estimated that there are between US$21.6 and US$25.2 billion in art-secured loans to private collectors in 2021, and that the overall market for art-secured loans could “further grow to an estimated US$31.3 billion by 2022.” This growth has opened the door for alternative art lending firms like TPC Art Finance (TPCAF). 

TPCAF’s loans are bespoke to the client and to the situation. Because of our structured underwriting and proven track record, we work more nimbly and quickly than many other lenders.

In addition, TPCAF does not stipulate how funds are utilized. Borrowers can use funds from an art-secured loan through TPCAF however they choose – including to pay for attorney’s fees and proceedings.

For attorneys who are advising clients with significant art collections but limited liquid assets, an art-backed loan can be a positive and unencumbered way forward. With the consent of both spouses, art-secured lending allows them to deploy the equity of their artworks while providing the time needed to prepare for an orderly sale or distribution of property.

To learn more about how your clients can benefit from art-secured lending, click here

We look forward to collaborating with you.  

NAOMI BAIGELL

Managing Director

Naomi@tpcaf.us

To read TPC’s analysis of the art-secured lending market from Deloitte’s 2021 edition of the Art & Finance Report, click here

To view the full report, click here.

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Year End Update and Look Ahead with TPCAF’s President, Joe Charalambous

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Although 2021 posed many challenges for the financial markets, TPC saw continued demand for fine art financing services throughout the year. Collectors remained actively engaged and continued investing in fine art, with more market participants using leverage from lenders like TPC to do so. Vaccine technology and increased COVID-safety protocols have allowed for the resurgence of highly attended in-person art fairs and events such as Art Basel Miami, Frieze London, and NYC Armory Week, which further propelled the strength of the art market.

Looking ahead to 2022, recent auctions, private, and art fair sales suggest that the art market and its participants will continue buying and selling at the fast pace and the strong volumes we are currently experiencing. On a macro level, the rising level of inflation in 2021 hasn’t had much impact on the overall economy, at least not yet. We remain focused on overall market conditions, corrections in the securities markets, and changes in interest rates which ultimately could affect the art market and our client base. For now, we project a steady – if not robust – art market environment for the next year or so.

TPC’s plans for 2022 include new lending service offerings to further enhance the benefits we  provide to our clients. These services aim to further empower galleries, dealers, artist estates, and collectors with a variety of liquidity solutions.

We are thrilled to be helping our clients thrive as we begin to put what we hope is the worst of the pandemic behind us and look forward to what 2022 will bring. Above all, we are grateful to be an even more integral part of the global art community and to be actively engaging in all of our visions for the future and continued success.

Some highlights from 2021:

Barron’s New York Auction Sales Reach US$2.5 Billion (Naomi Baigell)

The Canvas: A Different Kind of Art-Backed Lender –  TPCAF (Joe Charalambous)

Baer Faxt TPC Art Finance (Naomi Baigell & Josh Baer)

And more….

Artnet News | The Global Art Market NewswireArtTacticArtsy NewsFinancial Times

Art & Finance report