Fine art lending

Fine art lending

Leveraging an art collection

Whether you are funding an investment or adding to your collection, our fine art lending program is designed to complement your overall wealth planning strategy. Our highly experienced lenders will work with you throughout the loan process to identify and evaluate all your options.   

 

 

Advantages

  • By using your art collection as collateral, you can diversify your sources of liquidity
  • Benefit from a lending solution fully tailored to your individual situation
  • In the majority of cases, the art pledged as collateral will remain in your possession 

 

 

Loan parameters 

  • Minimum loan size: $10,000,000
  • Unrestricted use of proceeds, with the exception that bridge art sales will not be financed
  • Typical tenor of one to two years—committed facility
  • Full recourse to an individual or wealth vehicle whose financial ability is protected and

maintained through covenant compliance

 

 

Collateral parameters 

  • Eligible collateral includes paintings, sculptures and drawings physically located in the United States
  • Independent appraisals are required upon loan origination and annually thereafter
  • Each piece of art collateral must maintain an appraised value of $1,000,000 or more at all times
  • Collateral shall consist of a pool of diversified artworks with no individual piece comprising greater than 20% of the total collateral pool and no individual artist comprising greater than 50% of the total collateral pool
  • Advance rates typically up to 50% of the appraised fair market value estimate
  • Insurance coverage for each piece is required, naming Deutsche Bank as loss payee 

 

About Deutsche Bank Wealth Management 


Deutsche Bank Wealth Management serves as a trusted partner to wealthy individuals, family offices and select institutions. With practices in the Americas, Europe and Emerging Markets, we are one of the largest wealth managers globally. As a full-service wealth management firm, we offer our clients a comprehensive suite of private banking solutions, including access to the broader financial offering of Deutsche Bank.

 

We would welcome the opportunity to work with you. For more information about our fine art lending program, please contact your relationship manager. 



The products and services described in this document are not appropriate for everyone, so you should make a decision based on your financial, legal and tax situation after consultation with your tax and legal advisors. Deutsche Bank does not provide accounting, tax or legal advice to its clients. This information is not financial advice or a solicitation.

This is not a commitment by Deutsche Bank AG or any of its subsidiaries or affiliates (collectively referred to as “Deutsche Bank” or “Bank”) to make any loan. Loan transactions are subject to (i) the Bank’s due diligence procedures, including but not limited to “know your customer” policies, (ii) satisfaction with the proposed borrower’s financial position, legal structure, ownership and management, (iii) review and approval by the appropriate credit departments, (iv) internal lending and collateral limits, (v) compliance with applicable laws and regulations in effect from time to time and (vi) the execution and delivery of approved documentation for the transaction in form and substance acceptable to the Bank and its counsel. The Bank’s lending programs are subject to periodic review and change without prior notice. Where applicable, additional loan-related and closing costs may include, but are not limited to, title insurance, document preparation and attorney’s fees. Investing with borrowed money contains risk. No assurance can be given that investors’ investment objectives will be achieved, or that investors will receive a return of all or part of their investment.

Investments using borrowed money are suitable only for persons who can afford to lose their entire investments. Before investing, prospective investors should carefully consider these risks and others, such borrowing costs, repayment terms, and liquidity. 

Unless you are notified to the contrary, the products and services mentioned are not insured by the FDIC (or by any governmental entity) and are not guaranteed by or obligations of Deutsche Bank. 

Deutsche Bank is an equal opportunity lender and does not discriminate based on race, color, national origin, religion, sex, familial status or handicap (disability). 

“Deutsche Bank” means Deutsche Bank AG and its affiliated companies. Deutsche Bank Wealth Management represents the wealth management activities conducted by Deutsche Bank AG or its subsidiaries. Banking and lending services are offered through Deutsche Bank Trust Company Americas, member FDIC, and other members of the Deutsche Bank Group. Brokerage services are offered through Deutsche Bank Securities Inc., a broker-dealer and registered investment adviser, which conducts investment banking and securities activities in the United States. Deutsche Bank Securities Inc. is a member of FINRA, NYSE and SIPC. © 2022 Deutsche Bank AG. All rights reserved. Americas (US) 028523 020822