The art financing deal will allow a collector to keep artworks on their wall for the duration of the financing period – one of the first of its kind with an art financier outside the US or UK
Falcon Fine Art, the specialist art financier, has closed a loan for an Irish that allows them to keep the financed work in their house. This is thought to be the first time that an Irish borrower has been able to keen displaying a financed work.
“While our clients appreciate the smart wealth management strategy behind art financing, they are first and foremost art collectors: they want to display and enjoy their artworks,” says Tim Hunter, Vice President of Falcon Fine Art.
US art finance borrowers typically get to hold onto pledged art. This is because the US Commercial Code recognizes loans made to individuals. Other jurisdictions are not as friendly towards lenders and traditionally borrowers outside the US have been forced to place works that they have financed into storage.
In 2014 Falcon Fine Art developed a product allowing it to finance art works in the UK and this is its first deal in another country.
“We are pleased to say that we have developed the means to allow these collectors to keep their paintings on their walls throughout the financing period,” says Hunter. “The fact that we can now do so internationally will help many more collectors reap the benefits of art financing.”
Falcon Fine Art hopes to have financed art worth more than $100 million by September 2016.
Benjamin Klem Darden has also joined Falcon Fine Art as business development manager.