$107M Art Finance Loan for Switzerland-Based UHNW Collector

Hectocorn was instructed by a Switzerland-based ultra-high-net-worth collector seeking to refinance part of his existing art portfolio, valued at $107M. The collection included internationally recognised names such as Andy Warhol, Roy Lichtenstein, Claes Oldenburg, and Richard Hamilton, as well as contemporary artists Deborah Kass and Keith Haring. 

The client’s objective was clear: release liquidity equivalent to 50% of the collection’s value without relocating the artwork outside Switzerland. We delivered a bespoke structure that allowed the portfolio to remain in a free port zone in Geneva, ensuring both compliance and privacy. 

Client Profile and Challenges 

The client’s overall net worth exceeded $500 million, but he was not drawing conventional income at the time of the refinance. This posed a challenge for traditional private banks, which tend to underwrite based on income multiples or assets under management. 

Additional complexities included: 

• Offshore holding structures – artworks were held through trust vehicles and custodial arrangements. 

• Provenance requirements – ensuring every artwork had clear documentation of ownership history and authenticity. 

• Liquidity strategy – the client sought financing without ongoing interest payments, preferring to settle on exit or future sale of pieces. 

• Privacy considerations – confidentiality was paramount given the profile of both the collector and the artists represented in the portfolio. 

Advisory Approach 

Hectocorn’s debt advisory team provided a structured art finance loan solution in collaboration with a specialist lender. The financing equated to 50% of the total collection value, approximately $53.5M. 

Rather than imposing monthly interest obligations, the structure allowed interest to be rolled and repaid at exit — a mechanism that aligned with the client’s wish to avoid cashflow strain. This is an increasingly popular structure in luxury finance for art collectors, particularly where liquidity is tied to illiquid but high-value assets. 

The refinancing was designed to meet several objectives simultaneously: 

• Preserve location of artwork – ensuring all pieces remained in Switzerland’s Geneva Freeport zone. 

• Respect provenance requirements – lenders placed significant emphasis on provenance and liquidity history, reflecting the stability and market recognition of the collection. 

• Deliver flexibility – equity release allowed the client to unlock $53.5M while continuing to hold and display the portfolio. 

• Maintain privacy – discreet structuring protected the client’s identity and family office interests. 

Why Provenance Matters in Art Finance 

Provenance is a cornerstone of any loan to purchase art or refinance a portfolio. In this case, every work in the collection had clear ownership history, strong auction presence, and recognition in catalogues raisonnés. This not only reinforced the collection’s value but also its eligibility for a luxury finance structure. 

It ensured lender confidence and enabled higher loan-to-value ratios than would have been possible for emerging or less established artists. 

Delivered Outcome 

The client successfully refinanced 50% of his $107M portfolio through an art finance loan structured by Hectocorn. This provided $53.5M liquidity, with no ongoing interest burden and full repayment aligned with future asset sales. 

By using our global debt advisory expertise, the client retained ownership of the portfolio in Switzerland while benefiting from equity release for other investment opportunities. 

This case highlights how Hectocorn supports UHNW collectors in structuring complex art finance solutions that preserve privacy, optimise liquidity, and respect the unique dynamics of art as an asset class. 

Contact Hectocorn to explore bespoke art finance loan solutions, from refinancing portfolios to structuring luxury finance for high-value collections. Our advisory team helps UHNW clients unlock liquidity while preserving privacy and provenance. 

 Key Deal Highlights 

• Acquisition target: 50% share of $107M art collection  

• Artists included: Andy Warhol, Roy Lichtenstein, Claes Oldenburg, Richard Hamilton, Deborah Kass, Keith Haring  

• Location: Switzerland 

• Financing provided: 50% LTV linked to SOFR + 5.5%