Sotheby’s Financial Services

Sotheby’s Financial Services

Empowering great collectors with financial flexibility

S otheby’s Financial Services (SFS) is an asset-based lending service. We enable clients to unlock the value of their fine art, collectible cars and other passion assets.

Our approach is fueled by Sotheby’s specialist expertise, data and market insights. With unparalleled knowledge of the value of fine art and luxury goods, our underwriting process is centered on one’s collection.

We are the only asset-based lender with access to institutional capital at scale, offering loans up to $250 million. We have originated more than $10 billion in loans since our inception.

Some clients use our services to fund future acquisitions. Others use the capital to pay estate taxes or facilitate traditional investments. Whatever your goals, we can help.

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Core Product Offerings

We offer three types of loans:

Equity Loan: A 12- to 36-month loan that enables clients to unlock a portion of the substantial equity in their collection to create liquidity– all while continuing to own their property.
Consignor Advance: Enables clients to tap into a portion of the expected proceeds from items consigned to Sotheby’s for upcoming sales.
Acquisition Financing: Minimizes out-of-pocket cash required for future collection acquisitions by leveraging a portion of clients’ existing collection and the planned acquisition.

Please contact us to explore the myriad ways our services can help you achieve your ambitions.

Services & Expertise

• Finance across 70 categories including fine art, automobiles, whisky, wine and jewelry
• Receive expert valuations and confidential guidance
• Access up to $250 million based on valuation and needs
• Tenor between 12 - 36 months
• Maintain privacy with no personal financial disclosure or covenants required
• Keep your collection on display with an option for in-residence collateral in certain locations

Loan Process

We aim to close loans within six weeks of initial consultation depending on collateral and location, among other factors. In most cases, the loan process includes these steps:

1. Consultation: Initial conversation on your objectives and preliminary valuation occurs.
2. Term Sheet: Terms based on the preliminary collateral valuation are shared for review and agreement.
3. Diligence & Loan Documentation: Diligence and compliance review is conducted, and loan documentation with agreed terms is shared.
4. Funding: Loan documents are executed and funds disbursed.
5. Servicing: Dedicated client team supports you as your financial needs and goals evolve over time.

Case Studies

We have partnered with clients across locations, collecting interests and backgrounds to empower a wide range of wealth strategies and collecting objectives. The below illustrative case studies outline a few of these strategies and how financing a collection can provide flexibility across a diverse range of goals.

Cashless Acquisition Financing

Cashless Acquisition Financing

A collector is considering purchasing a blue-chip artwork valued at $50M and wishes to maintain liquidity for business purposes. Borrowing $25M against the value of the artwork, and another $25M against their existing collection, they are enabled to acquire the desired artwork without any cash out of pocket.

One-of-a-Kind Collection

A collector with an existing loan from another lender seeks to refinance it. Their collection includes a diverse, extraordinarily unique collection of culturally significant old master paintings, wine, books and manuscripts. With updated valuations, they are presented a $45M refinancing offer that enabled them to move their loan and borrow at a lower rate.

Business Reinvestment

A collector and owner of a successful private food and beverage company is seeking liquidity to invest back into business operations. Borrowing $30M against their collection, they are able to complete a capital expansion project, anticipating returns in excess of their borrowing costs.

Irrevocable Bid

A collector is considering placing an irrevocable bid (IB) of $35M on a sought-after artwork. Leveraging pieces of their existing collection and the potential purchase, the collector strategically plans for access to liquidity in order to increase purchasing power.

Consignment Over Time

A seasoned collector with broad and eclectic tastes plans to sell a large portion of their collection to cash out a real estate transaction. A multi-sale strategy taking place over 18 months is recommended to maximize proceeds. With a $75M advance against the entire consignment, the client meets the transaction deadline and proceeds with the recommended sale strategy.

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Scott Milleisen

Global Head of Lending, Sotheby’s Financial Services

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Ron Elimelekh

Chief Operating Officer & Chief Capital Officer

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Andrew D. Goldberg

SVP | Head of Collectible Cars

New York

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Eliza Cuddy

VP | Lending Specialist, Americas

New York

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Matt Conway

VP | Lending Specialist, Americas

New York

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Fatima Ali

VP, Assistant General Counsel, SFS

New York

Fatima.Ali@sothebys.com +1 212 894 1135

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Nicholas Ricotta

AVP | Lending Specialist, Americas

New York

Nicholas.Ricotta@sothebys.com +1 212 894 2251

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Chris Hughes

Director | Lending Specialist, Europe

London

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Jessica Morley

Director, Lending Specialist

London

Jessica.Morley@sothebys.com +44 (0) 207 293 5797

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Yeon Song

Director | Lending Specialist, Asia

Singapore

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Jessica Liu

Deputy Director | Lending Specialist, Asia

Hong Kong

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Purpose of Inquiry

This is not a commitment to lend, and financing products are subject to an eligibility check and may not be available in all locations.

Sotheby’s Financial Services California, Inc. is a licensed California Finance Lender (6030237). Loans made or arranged pursuant to a California Financing Law license.

Important Information

Key Risks

This material has been prepared for informational purposes only. It does not provide investment advice or any advice regarding the purchase and/or sale of any artwork. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. It is not a recommendation to purchase or sell artwork nor is it to be used to value any artwork. Individuals must independently evaluate particular artwork, artwork investments and strategies, and should seek the advice of an appropriate third-party advisor.

Sotheby’s Financial Services, Inc. (“SFS”) and its affiliates do not provide tax or legal advice. Individuals are urged to consult their personal tax or legal advisors to understand the tax and legal consequences of any actions, including any implementation of any strategies or investments described herein. Individuals should also consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving trust and estate planning, charitable giving, philanthropic planning and other legal matters.

All loans by SFS are subject to the underwriting standards and independent approval of SFS. Loans may not be available in all locations. Rates, terms, and programs are subject to change without notice. Other restrictions may apply. The information contained herein should not be construed as a commitment to lend.

Non-Reliance

No representation or warranty should be made with regard to any computations, graphs, tables, diagrams or commentary in this material, which are provided for illustration/ reference purposes only. SFS does not accept any liability for any loss or damage (whether direct or indirect) arising out of the use of all or any part of this material. The views, opinions, estimates and strategies expressed in this material constitute our judgment based on current market conditions and are subject to change without notice. SFS assumes no duty to update any information in this material in the event that such information changes.

Legal Entity & Regulatory Information

Sotheby’s Financial Services California, Inc. is a licensed California Finance Lender (6030237). Loans made or arranged pursuant to a California Financing Law license.

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Sotheby’s Financial Services

Core Product Offerings

Core Product Offerings

Services & Expertise

Services & Expertise

Loan Process

Loan Process

Case Studies

Our Team

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