Unlock the value of your art collection
At TPC Art Finance, we work with our clients to craft loans that fit their unique circumstances and address their liquidity needs. Rather than selling individual pieces of art or collections, our clients leverage the equity within artworks by taking out a loan against them. Clients retain ownership of their artwork, and gain the opportunity to convert up to 50% of the work’s fair market value into a loan that can then be used for a variety of purposes.
Based on the fair market value of the art collection.
Up to 50%
Convert up to 50% of the work’s fair market value to liquid capital.
Other terms may be considered on a case-by-case basis.
Term Loan for a Collector – Value: $4M
Collector Secures $4M Loan During the COVID-19 Pandemic
Client: A Massachusetts-based fine art collector
Referral Source: Private Bank
Challenge: The client needed funds on an expedited basis to invest in a property during the initial phase of the COVID-19 pandemic. After considering several traditional means of financing the acquisition, the collector believed that the best course of action would be to sell 10 pieces by major Contemporary artists at auction. The fair market value of the 10 pieces was $9M, but market instability brought on by the pandemic led the collector to feel apprehensive about selling. After expressing their trepidation to their banker, they were referred to TPC Art Finance.
The Solution: Within 24 hours of initial contact, TPC provided indicative terms offering best options for the size and value of the collection. Within three weeks, the value of the collection was assessed, the necessary documents were filed, and a $4M loan with a term length of 24 months was closed. Consequently, the collector was able to use the principle to acquire the property while retaining ownership of the artworks, thereby allowing them to sell at a more optimal and less precarious time.
Term Loan for Gallery – Value: $20M
$20M Gallery Loan Allows for $45M Expansion of Collection
Client: A U.S.-Based Gallery
Referral Source: Trusted Art Attorney
Challenge: A well-renowned gallery had a one-time opportunity to purchase a collection that included works by Old Masters, as well as several high-profile Modern and Contemporary artists, but lacked the funds to finance the acquisition.
Solution: The gallery contacted TPC Art Finance for assistance. After the initial consultation meeting, TPCAF began the underwriting process on a $20M loan secured by the gallery’s existing collection. Within five weeks, the loan was completed and funds were transferred to the gallery, allowing them to purchase the additional works.
Term Loan for Family Office
Family Office Uses Collection to Expand Their Business
Client: A family office with a substantial art collection
Referral Source: Trust and Estate Advisor
Challenge: A family-owned business based in New York inherited a substantial collection of art including photographs and works on paper. Concurrently, they had recently decided to expand other areas of their business and were exploring multiple financing solutions to support their objectives. With limited knowledge of the art world, they didn’t know their collection could be used as collateral to secure a loan, nor were they aware of its valuation.
Solution: After consulting with the client, TPC Art Finance was asked to assess the value of the collection, and it was appraised at a fair market value of $10M. After considering other alternatives, the client determined that using the works as collateral for a loan from TPC was the most opportune course of action.TPC then secured a $4.5M loan for the client within just three weeks.On account of the expediency with which they received the loan principal, the client achieved their expansion goals ahead of schedule.
Talk with a member of our team and learn more about how TPC Art Finance can help you unlock capital.