Art - Case Study 3

Case Study: Portfolio diversification

Art

An investor with a considerable art collection is looking to take advantage of opportunities in the financial markets by adding new investments to his existing portfolio. However, he has a strong emotional attachment to his artworks and is reluctant to sell any of them.

By securing an art loan through WestendArtBank using part of his collection as collateral, the client releases previously locked-in capital to invest in other asset classes. This arrangement helps him to avoid the high transaction costs involved with selling art, as well as the capital gains tax incurred and any negative publicity or damage to his reputation.

In addition, WestendArtBank structures the transaction so that the client retains possession of the artworks and can continue to enjoy seeing them on display in his home.

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