2015PRESSREPORT

 

October  7,  2015  10:15  pm  

Carlyle  and  Banque  Pictet  sketch  out  big  returns  from  art  market  Henny  Sender  in  New  York  

Carlyle and Banque Pictet are creating a venture to provide financing to the art market as private equity groups reach into fresh corners of the financial world in their quest to generate high returns. Despite the multitrillion-dollar size of the art market, only Sotheby’s and some private banks are in the business of providing loans to collectors, whose art provides debt collateral. Carlyle hopes it can shake-up the economics of the art market, even with the small size of the money being committed. The start up, Athena Art Finance, will have $280m in equity capital as well as bank credit lines that will enable Carlyle and Pictet to leverage the equity multiple times. Athena will offer loans of up to 50 per cent of the value of the art from dozens of painters who meet certain criteria. The company will then package the loans and distribute them in the market, taking a profit in the process.

 

Carlyle and its partners hope that wealthy families, pension funds and sovereign wealth funds will be attracted by yields that are potentially higher than those in the fixed income market. Many private banks advise clients to keep a portion of their wealth in art, claiming that art can hold its value at times of economic dislocation. While the value of art in the world amounts to trillions of dollars, the size of the art lending market is only about $7bn, according to data Carlyle has collected. “We will drive the institutionalisation of this huge market. By introducing more liquidity to the market, we think the cost of capital for these assets will go down and the value will go up,” said Oliver Sarkozy, who is in charge of Carlyle’s latest $1bn Global Financial Services Fund, which is making the investment in Athena. “Leverage generally means asset prices inflate.” One of the main risks in the art market is to get the valuation of the painting right even though the loans on offer will be only a fraction of the appraised value of the art in question. Artists whose work meets Athena’s criteria include about 80 artists, among them Francis Bacon, Claude Monet, Pablo Picasso, Gerhard Richter and Andy Warhol, or the top artists by volume in 2014, according to data from the most recent TEFAF Art Market Report survey. With the exception of Richter, almost all of the 80 or so artists on the approved list are deceased. While the most obvious potential rival to Carlyle is Sotheby’s, there are limits to how much financing any auction house can offer before rating agencies worry about credit risk. “Sotheby’s decision to increase its borrowings can drive further growth for its rapidly expanding finance segment but also poses the risk of materially weakening its credit rating in the longer term,” Moody’s warned at the end of September. Carlyle also plans to offer financing to buyers at other auction houses. Athena already has about $150m in requests for loans when it opens its doors in coming days.

http://www.ft.com/intl/cms/s/0/c9c30c42-6cd0-11e5-8171-ba1968cf791a.html#axzz3o5YIenAd

Athena, jv tra Carlyle e Bank Pictet, entra nel busness dell’art loans

Con la regia di Oliver Sarkozy, fratellastro dell’ex presidente Sarkozy

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MarilenaPirrelli

2015-10-09

 

Athena Art Finance Debuts with Backing from Carlyle and Pictet October 8, 2015 by Marion Maneker

The Financial Times has important news that may mark a turning point in the art market. Carlyle’s Olivier Sarkozy is launching an art financing firm, Athena, that will offer loans against art as an asset. This will be the first firm to provide loans in the art market that is founded by two mainstream financial firms, Carlyle and Switzerland’s Pictet.

Many private banks provide loans against art but they combine those loans with security from borrowers other assets. So Athena offers the potential for greater liquidity in the art market:

Carlyle and its partners hope that wealthy families, pension funds and sovereign wealth funds will be attracted by yields that are potentially higher than those in the fixed income market. Many private banks advise clients to keep a portion of their wealth in art, claiming that art can hold its value at times of economic dislocation.

While the value of art in the world amounts to trillions of dollars, the size of the art lending market is only about $7bn, according to data Carlyle has collected. “We will drive the institutionalisation of this huge market. By introducing more liquidity to the market, we think the cost of capital for these assets will go down and the value will go up,” said Oliver Sarkozy, who is in charge of Carlyle’s latest $1bn Global Financial Services Fund, which is making the investment in Athena. “Leverage generally means asset prices inflate.”

Update: Athena has now issued their press release:

“The $3 trillion-plus global art market is one of the least developed and least financially sophisticated market of substantial size in the world,’’ said Mr. Sarkozy. “Athena’s substantial resources and relevant expertise bring a professionalized financial services approach to this underserved market.’’

Athena will offer 6-month to 7-year loans of at least $1 million at competitive rates, enabling clients to leverage their art without pledging their other personal assets. The firm seeks to distinguish itself by not aiming to sell or take an ownership interest in any of the works backing its loans.

“For too long serious art collectors and other market participants have been faced with limited choices when they want to borrow against art,’’ said Athena CEO Andrea. Danese, who brings more than 20 years of experience in structured finance and financial technology to Carlyle’s investment expertise. “We aim to be an independent, trustworthy and flexible source of financing for the art market.’’

Athena expects to provide additional flexibility to financial advisors, estate planners, lawyers and other professionals who may now manage their clients’ collections as rationally as the rest of their asset portfolio.

 

Athena will allow collectors to retain ownership of their artworks, enabling them to

make other investments or finance unexpected expenses while simultaneously

protecting the rest of their assets. “The resulting increased liquidity for our clients

will improve the art market’s transparency and efficiency,’’ said Mr. Danese. “We

are unlocking collectors’ personal balance sheets in a thoughtful way and giving

them reliable flexibility as they manage their cherished art collections.”

 

 

New Athena Art F inance Backed by Car ly le Group Wi l l Loan Money Against Blue Chip Art

Eileen Kinsella, Thursday, October 8, 2015

Athena Art Finance is the latest financial company to delve into the booming art market, by making loans available to collectors who wish to use their valuable blue chip art as collateral. Athena launched October 8 with $280 mill ion of equity capital led by The Carlyle Group, which is l isted on the Nasdaq exchange and is the private equity arm of Pictet Group, a wealth and asset manager founded in Geneva in 1805.

According to a statement released today, Athena, which will be based in New York, will offer loans "exclusively collateralized by works of fine art, starting with the upcoming auction and art fair seasons."

The lending unit was conceived by Olivier Sarkozy who is managing director of the Carlyle Group and head of its Global Financial Services Group. "The $3 tri l l ion-plus global art market is one of the least developed and least financially sophisticated market of substantial size in the world," said Sarkozy. "Athena's substantial resources and relevant expertise bring a professional financial services approach to this underserved market."

 

 

Andrea Danese, CEO of Athena.

Other financial companies, including Citi Private Bank and JP Morgan also operate art lending services where artwork is used as collateral. Such arrangements allow art collectors to gain liquidity from high-value works without having to sell them. Sales of art remain among the highest where capital gains taxes are concerned.

Athena said it will offer six- to seven-year loans of at least $1 mill ion at competitive rates "enabling clients to leverage their art without pledging their other personal assets. The firm seeks to distinguish itself by not aiming to sell or take an ownership interest in any of the works backing its loans."

"For too long serious art collectors and other market participants have been faced with limited choices when they want to borrow against art," said Athena CEO Danese, who is a structured finance specialist.

The loans will be made "against artworks with highly marketable value," according to the press release, "meeting the needs of high net worth individuals, family offices, and other market participants whose current options are limited to the recourse art-loans offered by the major private banking institutions or the short-term loans offered at double-digit rates by boutique lenders."

Athena will allow collectors to retain ownership of their artworks, "enabling them to make other investments or finance unexpected expenses while simultaneously protecting the rest of their assets."

   

Art Loan Startup Attracts Major Backers BY ANNELIESE COOPER, MOSTAFA HEDDAYA | OCTOBER 08, 2015

Carlyle Group banker Olivier Sarkozy, half-brother of former French president Nicolas Sarkozy and half-Olsen Twins spouse (he is married to Mary-Kate), is launching Athena Art Finance, an art loan provider. The venture will be

backed by Carlyle and the Swiss private bank Banque Pictet. Athena is launching with $280 million in equity, with further access to credit lines, and

intends to offer loans against works by “dozens of painters who meet certain criteria,” according to the Financial Times. “We will drive the

institutionalization of this huge market. By introducing more liquidity to the market, we think the cost of capital for these assets will go down and the value will go up,” Olivier Sarkozy told the paper, pointing to the disparity between

the size of the global art trade relative to the small existing art loan market. [FT, Art Market Monitor]

Carlyle in Art Financing Venture

By ALEXANDRA STEVENSON

October 8, 2015

For a propitious few who are collectors of Rothkos and Modiglianis, there is a new lender in town.

The Carlyle Group, a private equity giant, has teamed adult with Banque Pictet to offer loans to collectors regulating their art as material underneath a new business try called a Athena Art Finance Corporation. Wealthy collectors of art will be means to steal opposite pieces they already possess to buy some-more art, like pieces from artists like Willem de Kooning and Georgia O’Keefe that will go underneath a produce in entrance auction seasons during Sotheby’s and Christie’s, a association said.

“We trust that this is a marketplace where art is an item category that is apropos really renouned for many rich people,” pronounced Andrea Danese, arch executive and co-founder of Athena.

Pablo Picasso’s “Femme Assise sur une Chaise,” 1938, is estimated to sell for $25 million to $35 million.

Athena, that has already lifted $280 million, will offer loans value as most as 50 percent of a value of any specific square of design or a collection of works. These loans will operation from 6 months to 7 years in length and will start during $1 million.

Carlyle’s investment in a try comes from a Global Financial Services unit, that is run by Olivier Sarkozy.

“The $3 trillion-plus tellurian art marketplace is one of a slightest grown and slightest financially worldly markets of estimable distance in a world,” Mr. Sarkozy pronounced in a matter on Wednesday.

In an interview, Mr. Danese pronounced a thought for a try originated with Mr. Sarkozy, who is a half hermit of a former French president, Nicolas Sarkozy. Mr. Danese, who was formerly an executive during Bloomberg, pronounced he was introduced final year to Mr. Sarkozy by Daniel L. Doctoroff, a former arch executive of Bloomberg.

Eventually, Athena skeleton to package together array of loans, branch them into new investment products for other investors like private resources clients and institutions like grant funds.

While a art lending marketplace is still fledgling and there are few entrants, Athena estimates that it could be value billions of dollars. The auction residence Sotheby’s has done some-more than $4 billion in loans opposite art, according to a website. And a new news by Skate, an art attention magazine, has estimated that a loan marketplace could be as vast as $100 billion, Mr. Danese forked out.

In a new venture, Athena will contest conduct on with a auction residence Sotheby’s and a few private banks that now lend to art collectors. But Mr. Danese pronounced Anthena’s ambitions go further.

“We wish to be a marketplace builder in art risk,” he added. “If we consider about Solomon Brothers in a aged bond market, we wish to be in a center of a building of risk in a art market.”

   

Viernes, 9 de Octubre de 2015 Actualizado a las 19:10  

Economía.- Athena Art Finance ofrecerá créditos sin recurso respaldados por obras de arte por 248 millones de euros

MADRID, 8 (EUROPA PRESS) El prestamista global especializado Athena Art Finance ofrecerá créditos sin recurso respaldados exclusivamente por obras de arte. La inversión, que contará con 280 millones de dólares (248 millones de euros), estará respaldada por el grupo Carlyle y la unidad de private equity del Grupo Pictet. Según ha informado el prestamista en un comunicado, la inversión de estos créditos procederá del fondo 'Carlyle Global Financial Services Partners II'. Concretamente, Athena pretende aportar un enfoque disciplinado a la financiación del arte al aceptar como colateral obras de arte con mercado líquido profundo y con un calor demostrado. De hecho, la compañía ofrecerá hasta el 50% del rango bajo de las estimaciones de valor de las obras de arte o colecciones. Athena ofrecerá préstamos de entre 6 y 7 años de al menos 1 millón de dólares a precios competitivos, lo que "permitirá a sus clientes aprovechar el valor de su arte sin comprometer otros activos personales". Los préstamos se harán con obras de arte de alto valor de mercado, que puedan satisfacer las necesidades de grandes patrimonios, 'family offices' y otros actores. El prestamista especializado confía en ofrecer una flexibilidad adicional a los asesores financieros, planificadores inmobiliarios y otros profesionales.  

   

Picasso und Monet kaufen – mit Private Equity Der Markt für Kunstkredite ist lukrativ. Die Gesellschaft Athena Art Finance will genau das nutzen. 09.10.2015, von KLAUS MAX SMOLKA

Der Finanzinvestor Carlyle steigt ins Geschäft mit Kunstanlegern ein. Mit der Private-Equity-Sparte der Bank Pictet hat er ein Gemeinschaftsunternehmen gegründet, das über einen Geldtopf von 280 Millionen Dollar verfügt. Daraus reicht die Gesellschaft an Käufern von Kunst Kredite aus, die ausschließlich mit den erworbenen Kunstwerken besichert sind.

Athena Art Finance heißt die Gesellschaft und ist in New York ansässig. Carlyle schießt das Eigenkapital aus einem 2014 geschlossenen eigenen Fonds ein. Athena richtet sich unter anderem an reiche Privatleute und Familienvermögens-Verwalter.

Die Gesellschaft verleiht je Transaktion bis zu 50 Prozent des geschätzten Werts, den das fragliche Kunstwerk erzielt. Und sie nimmt nur Kunstwerke als Pfand an, die sich am Markt gut wieder verkaufen lassen. Die Gemälde müssen mehr als 2 Millionen Dollar wert sein, der Künstler soll schon eine anerkannte Karriere hinter sich haben, wie Oliver Sarkozy sagt, jener Geschäftsführer von Carlyle, der Athena ins Leben gerufen hat.

BREAKING NEWS: Sarkozy's ATHENA to offer loans against ART

Carlyle’s Olivier Sarkozy is launching an art financing firm, Athena, that will offer loans against art as an asset. This will be the first firm to provide loans in the art market that is founded by two mainstream financial firms, Carlyle and Switzerland’s Pictet. Many private banks provide loans against art but they combine those loans with security from borrowers other assets. Athena therefore offers the potential for greater liquidity in the art market. While the value of art is currently $3+ Trillion, the art lending market is only $7 Billion, according to Carlyle's data research. “The $3 trillion-plus global art market is one of the least developed and least financially sophisticated market of substantial size in the world.’’----Olivier Sarkozy

10/08/2015

 

Olivier Sarkozy bouscule les règles du financement d’oeuvres d’art

Le responsable mondial des services financiers de Carlyle, et frère de Nicolas Sarkozy, co-fonde avec le groupe Pictet, Athena Art Finance, une solution de prêt innovante d’oeuvre d’arts.

Olivier Sarkozy, le responsable mondial des services financiers de Carlyle et frère de Nicolas, veut réformer le marché très codifié du financement d’acquisitions d’oeuvres d’art. Il lance aujourd’hui avec le groupe suisse Pictet, Athena Art Finance, une nouveau type d’établissement de crédit. « Le marché global de l’art et ses plus de 3 trilliards de dollars est l’un des moins développés et des moins sophistiqués financièrement de cette taille dans le monde », explique le dirigeant du géant américain du private equity qui pèse plus de 193 milliards de dollars. Pas de gage personnel ...

Doté de 280 millions de dollars, Athena Art Finance, basé à New York, va désormais permettre aux collectionneurs, family offices et amateurs aux revenus élevés, de ne plus avoir à gager leurs biens personnels pour obtenir un crédit en vue d’acquérir un tableau ou une pièce de prix. « Pendant trop longtemps, les collectionneurs d’art et les autres participants du marché n’ont eu qu’un choix très limité de financement quand ils voulaient emprunter », critique Andrea Danese un vétéran des financements structurés qui a co-fondé la société. Athena Art Finance pourra maintenant leur proposer des prêts de 6 mois à 7 ans, d’au moins 1 million de dollars, qui seront eux gagés exclusivement par les oeuvres d’art déjà acquises par ces collectionneurs.

...Ni de taux d’emprunt à deux chiffres Athena Art Finance, précisent cependant ses promoteurs, se « distinguera en n’ayant ni pour but de vendre ou de prendre une participation dans ces oeuvres d’art venant garantir ces prêts ». Aujourd’hui, les collectionneurs n’ont en effet le choix qu’entre des prêts avec recours, par lesquels les grandes banques privées peuvent potentiellement prendre possession du bien ou bien « des crédits à court terme accordés moyennant des taux à deux chiffres par des boutiques de prêts », expliquent les promoteurs du projet.

La société elle accordera des crédit à de taux « compétitifs » allant jusqu’à 50 % de l’estimation la moins élevée de l’oeuvre d’art mise en garantie. Ne seront ainsi éligibles, que les pièces ayant déjà une vraie valeur de marché. In fine, s’il se développe, ce type de financement pourra potentiellement aussi rendre le marché d’acquisition d’oeuvres d’art plus liquide et plus transparent grâce aux évaluations des oeuvres.

NEW YORK (AFP) – Investment houses The Carlyle Group and Pictet Group announced a new unit Thursday that will offer loans against borrowers’ fine art as collateral. The U.S. and Swiss companies said their new Athena Art Finance Corp. will begin offering loans against works of art in the upcoming auction and art-fair season.

Athena will begin with $280 million in equity capital – just under the record price for one painting, $300 million reportedly paid for a work by Paul Gauguin earlier this year.

Athena will offer six-month to seven-year loans of at least $1 million and worth up to 50 percent of the lowest estimated value of artworks or collections that have “a deep and liquid market resulting in demonstrated value,” the companies said.

“The $3 trillion-plus global art market is one of the least developed and least financially sophisticated markets of substantial size in the world,” said Olivier Sarkozy, a Carlyle Group managing director.

“Athena’s substantial resources and relevant expertise bring a professionalized financial services approach to this underserved market.”

The art finance business has grown with the soaring value of fine works of art. The finance unit of auction house Sotheby’s has made more than $4 billion in loans against fine art.

Carlyle in Art Financing Venture By ALEXANDRA STEVENSON OCT. 8, 2015

For the lucky few who are collectors of Rothkos and Modiglianis, there is a new lender in town.

The Carlyle Group, the private equity giant, has teamed up with Banque Pictet to offer loans to collectors using their art as collateral under a new business venture called the Athena Art Finance Corporation.

Wealthy collectors of art will be able to borrow against pieces they already own to buy more art, like pieces from artists like Willem de Kooning and Georgia O’Keefe that will go under the hammer in coming auction seasons at Sotheby’s and Christie’s, the company said. “We believe that this is a market where art is an asset class that is becoming very popular for many wealthy people,” said Andrea Danese, chief executive and co-founder of Athena. Athena, which has already raised $280 million, will offer loans worth as much as 50 percent of the value of any specific piece of artwork or a collection of works. These loans will range from six months to seven years in length and will start at $1 million.

Pablo Picasso’s “Femme Assise sur une Chaise,” 1938, is estimated to sell for $25 million to $35 million.Credit2015 Estate of Pablo Picasso/Artists Rights Society (ARS), New York, via Sotheby's

David M. Rubenstein, co-chief executive of the Carlyle Group, in his Washington office. CreditDrew Angerer for The New York Times

 

Carlyle’s investment in the venture comes from its Global Financial Services unit, which is run by Olivier Sarkozy.

“The $3 trillion-plus global art market is one of the least developed and least financially sophisticated markets of substantial size in the world,” Mr. Sarkozy said in a statement on Wednesday.

In an interview, Mr. Danese said the idea for the venture originated with Mr. Sarkozy, who is the half brother of the former French president, Nicolas Sarkozy. Mr. Danese, who was previously an executive at Bloomberg, said he was introduced last year to Mr. Sarkozy by Daniel L. Doctoroff, the former chief executive of Bloomberg.

Eventually, Athena plans to package together series of loans, turning them into new investment products for other investors like private wealth clients and institutions like pension funds.

While the art lending market is still fledgling and there are few entrants, Athena estimates that it could be worth billions of dollars. The auction house Sotheby’s has made more than $4 billion in loans against art, according to its website. And a recent report by Skate, an art industry magazine, has estimated that the loan market could be as large as $100 billion, Mr. Danese pointed out.

In its new venture, Athena will compete head on with the auction house Sotheby’s and a few private banks that currently lend to art collectors. But Mr. Danese said Anthena’s ambitions go further.

“We want to be a market maker in art risk,” he added. “If you think about Solomon Brothers in the old bond market, we want to be in the middle of the floor of risk in the art market.”

 

http://www.nytimes.com/2015/10/09/business/dealbook/carlyle-­‐in-­‐art-­‐financing-­‐venture.html?ref=todayspaper  

 

Un service pour obtenir des prêts grâce à ses oeuvres d'art Publié le jeudi 08 octobre 2015 à 15h25

Le fonds américain Carlyle a annoncé jeudi le lancement de Athena Art Finance, destiné aux propriétaires d’œuvres d'art qui ont besoin d'argent et qui pourront utiliser leur collection pour solliciter un prêt.

Carlyle affirme dans un communiqué avoir investi, en partenariat avec le gérant de fortune suisse Pictet, 280 millions de dollars dans Athena. Carlyle a consacré un fonds spécial à la création de cette société basée à New York et fondée par Olivier Sarkozy, responsable mondial des services financiers de Carlyle. M. Sarkozy est le demi-frère de l'ancien président français Nicolas Sarkozy.

 

L'idée est de prêter aux propriétaires d'oeuvres d'art de l'argent gagé sur les œuvres qu'ils détiennent, une possibilité qui était très limitée sur le marché bancaire jusque-là. Carlyle s'attend à ce que la plupart des emprunteurs réinvestissent cet argent dans le marché de l'art.

"Le marché de l'art mondial de plus de 3000 milliards de dollars est l'un des marchés de taille substantielle les moins développés et les moins avancés sur le plan du financement", a fait valoir Olivier Sarkozy, cité dans le communiqué.

Des prêts de 50% sur la valeur des biens mis en gage

Athena Art Finance proposera jusqu'à 50% de la valeur estimée des œuvres individuelles ou des collections, selon le communiqué. La société va proposer des prêts d'au moins 1 million de dollars pour une durée de 6 mois à 7 ans "à des taux compétitifs".

Les oeuvres d'art sont entreposées chez le prêteur qui laisse toutefois la propriété des oeuvres aux collectionneurs emprunteurs.

Carlyle, Pictet launch fine art finance service

Athena will begin with $280 million in equity capital -- just under the record price for one painting, $300 million reportedly paid for a work by Paul Gauguin earlier this year.

Athena will offer six-month to seven-year loans of at least $1 million and worth up to 50 percent of the lowest estimated value of artworks or collections that have "a deep and liquid market resulting in demonstrated value," the companies said.

"The $3 trillion-plus global art market is one of the least developed and least financially sophisticated markets of substantial size in the world," said Olivier Sarkozy, a Carlyle Group managing director.

"Athena's substantial resources and relevant expertise bring a professionalized financial services approach to this underserved market."

The art finance business has grown with the soaring value of fine works of art. The finance unit of auction house Sotheby's has made more than $4 billion in loans against fine art.

New Athena Art Finance Backed by Carlyle Group Will Loan Money Against Blue Chip Art

Artnet News | Eileen Kinsella:

Athena Art Finance is the latest financial company to delve into the booming art market, by making loans available to collectors who wish to use their valuable blue chip art as collateral. Athena launched October 8 with $280 million of equity capital led by The Carlyle Group, which is listed on the Nasdaq exchange and is the private equity arm of Pictet Group, a wealth and asset manager founded in Geneva in 1805…

Major Changes on going in the Art Business

October 09, 2015 13:34

The Art business is changing everyday. This new venture by Athena Art Finance and The Carlyle Group is just another recent action by organizations to take advantage of high end art as investment venues. Read more about it at:

https://www.carlyle.com/news-room/news-release-archive/athena-art-finance-starts-art-lending-280-million-investment-led-carl

Athena Art Finance Starts Art-Lending With $280 Million Investment Led by The Carlyle

Group New York – Collectors of high-end art now have a new resource to tap their collections’ intrinsic value. Athena Art Finance Corp. is launching today with $280 million of equity capital led by The Carlyle Group (NASDAQ: CG) and the private equity unit of the Pictet Group, which co-founded the company with CEO Andrea Danese, a structured finance veteran.

 

8 things: Carlyle Group will now loan you $1M or more to buy art Oct 9, 2015, 7:07am EDT Updated Oct 9, 2015, 7:26am EDT INDUSTRIES & TAGS

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TheCarlyleGroup,themassiveprivateequityfirmbasedinD.C.,hasspreaditswealthtoeverythingfrommobilehomeparkstoDunkin'Donuts,Hertzandalotofthingswedon'tunderstand.Andnow?Somethingmostofuscanonlylookat:Thehigh-endartworld.InanewsreleaseThursday,CarlylesaiditwillbegininvestinginartcollectorswhohaveadesireforaPicasso,Warhol,Rothkos,O'Keefe,deKooningorModiglianis.ThefirmhaspairedwithBanquePictertoformAthenaArtFinanceCorp.,designedtocutloanstocollectorswhousetheirartascollateral.OnlythewealthywillbeabletoborrowagainstthepiecestheyalreadyowntobuymoreartaspiecesbecomeavailableatauctionsfromChristie'sorSotheby's.Loansstartat$1millionandcomefromCarlyle'sGlobalFinancialServicesunit."The$3trillion-plusglobalartmarketisoneoftheleastdevelopedandleastfinanciallysophisticatedmarketsofsubstantialsizeintheworld,”GlobalFinancialServicesOliverSarkozysaid.

Swiss private bank Pictet has discovered art as a new opportunity to earn money. It will offer its clients loans collateralized by high-value works of art as security. Art is an alternative investment for wealthy clients, increasing the diversification of their portfolios. So far, the volume of the art market – an estimated $3 billion – wasn't matched by an offer of corresponding financial products.

Pictet is about to change this. The private bank from Geneva has joined up with U.S. private equity specialist Carlyle Group to start Athena Art Finance. The two companies injected $280 million in capital, they said in a statement. Important Alternative Investment The private bank will offer loans to clients, who already own pieces of art or want to invest in art, collateralized by works of fine art.

«We believe alternative investments are increasingly important for large wealth owners,» said Rémy Best in the statement. The head of wealth management at Pictet added: «Art has always been a diversification asset for our clients, in some cases because of their passion for art in many forms, or in others because it serves as a true investment vehicle.»

Niche Product Athena Art is injecting liquidity into the art trade, lowering capital costs of these investment vehicles while increasing their value, Pictet and Carlyle expect.

Loans for art is a niche product in wealth management, hitherto the domain of Sotheby's, the auctioneer. Pictet and Carlyle aim to change this. They are convinced that clients and owners of fine art will pounce on the opportunity to make money with their collections. The target is a higher return compared with the bond market.

50 Percent of Value Athena will offer loans of as much as 50 percent of the estimated price of the piece of art. The minimum value is set at $2 million.

About 80 artist fit the bill, including Francis Bacon, Claude Monet, Pablo Picasso or Gerhard Richter. Added to these heavyweights of the art market will be artist whose works reached the highest values according to the Tefaf Art Market Report 2014. Pictet and Carlyle seem to have hit a nerve: Before even starting the business properly, Atheny has already posted requests for loans of 150 million Swiss francs.

Le fonds américain Carlyle a annoncé jeudi le lancement de Athena Art Finance, un service de prêts fondé par Olivier Sarkozy, demi-frère de l’ancien président français Nicolas Sarkozy, destiné aux propriétaires d’oeuvres d’art qui pourront utiliser ce patrimoine comme de l’endettement personnel. Carlyle affirme dans un communiqué avoir investi, en partenariat avec le gérant de fortune suisse Pictet, 280 millions de dollars dans Athena.

Carlyle a consacré un fonds spécial à la création de cette société basée à New York et fondée par Olivier Sarkozy, responsable mondial des services financiers de Carlyle.

L’idée est de prêter aux propriétaires d’oeuvres d’art de l’argent gagé sur les oeuvres qu’ils détiennent, une possibilité qui était très limitée sur le marché bancaire jusque-là. Carlyle s’attend à ce que la plupart des emprunteurs réinvestissent cet argent dans le marché de l’art.

« Le marché de l’art mondial de plus de 3.000 milliards de dollars est l’un des marchés de taille substantielle les moins développés et les moins avancés sur le plan du financement », a fait valoir Olivier Sarkozy, cité en anglais dans le communiqué.

Athena Art Finance proposera jusqu’à 50% de la valeur estimée des oeuvres individuelles ou des collections, selon le communiqué. La société va proposer des prêts d’au moins 1 million de dollars pour une durée de 6 mois à 7 ans « à des taux compétitifs ».

Les oeuvres d’art sont entreposées chez le prêteur qui laisse toutefois la propriété des oeuvres aux collectionneurs emprunteurs.

For the lucky few who are collectors of Rothkos and Modiglianis, there is a new lender in town.

The Carlyle Group, the private equity giant, has teamed up with Banque Pictet to offer loans to collectors using their art as collateral under a new business venture called the Athena Art Finance Corporation.

Wealthy collectors of art will be able to borrow against pieces they already own to buy more art, like pieces from artists like Willem de Kooning and Georgia O’Keefe that will go under the hammer in coming auction seasons at Sotheby’s and Christie’s, the company said.

“We believe that this is a market where art is an asset class that is becoming very popular for many wealthy people,” said Andrea Danese, chief executive and co-founder of Athena.

Athena, which has already raised $280 million, will offer loans worth as much as 50 percent of the value of any specific piece of artwork or a collection of works. These loans will range from six months to seven years in length and will start at $1 million.

Carlyle’s investment in the venture comes from its Global Financial Services unit, which is run by Olivier Sarkozy.

“The $3 trillion-plus global art market is one of the least developed and least financially sophisticated markets of substantial size in the world,” Mr. Sarkozy said in a statement on Wednesday.

In an interview, Mr. Danese said the idea for the venture originated with Mr. Sarkozy, who is the half brother of the former French president, Nicolas Sarkozy. Mr. Danese, who was previously an executive at Bloomberg, said he was introduced last year to Mr. Sarkozy by Daniel L. Doctoroff, the former chief executive of Bloomberg.

Eventually, Athena plans to package together series of loans, turning them into new investment products for other investors like private wealth clients and institutions like pension funds.

While the art lending market is still fledgling and there are few entrants, Athena estimates that it could be worth billions of dollars. The auction house Sotheby’s has made more than $4 billion in loans against art, according to its website. And a recent report by Skate, an art industry magazine, has estimated that the loan market could be as large as $100 billion, Mr. Danese pointed out.

In its new venture, Athena will compete head on with the auction house Sotheby’s and a few private banks that currently lend to art collectors. But Mr. Danese said Anthena’s ambitions go further.

“We want to be a market maker in art risk,” he added. “If you think about Solomon Brothers in the old bond market, we want to be in the middle of the floor of risk in the art market.”

NY Times

Private equity firm Carlyle and asset manager Pictet recently teamed up for a rather unusual financing venture. The two companies formed Athena Art Finance Corporation, which will offer loans for art investors with art, i.e. paintings, as a collateral. The company is not investing itself in paintings, but provides loans up to 50% of an underlying painting for collectors which seek to expand their collections. The value of the underlying should be at least USD 2 million and the loans will have a maturity of 6 months up to seven years. Athena starts with USD 280 million capital. Managing Director Olivier Sarkozy, half-brother of former President of France Nicolas Sarkozy, estimates the global art market at USD 3 trillion plus, although consultancy firm Deloitte sees USD 1.5 trillion held in art assets. According to the European Fine Art Foundation, global art sales reached USD 54.1bn in 2014, an annual increase of 7%. However, investment dedicated to art is relatively modest with a size of USD 1.3bn, according to a study by Deloitte. The record sale price of a work of art sold at an auction is USD 300 million (for Gauguin’s “Nafea Faa Ipoipo (When Will You Marry?)” Deloitte found that 76% of art buyers and collectors acquire art from an investment viewpoint. There are currently 72 art funds and investment trusts, interestingly 55 of these are in China.

The question is how solid this type collateral for loans is. Since art has hardly any intrinsic value, it is very sensitive to fluctuations. The valuation of art depends on connoisseurship. Since the underlying asset is rather illiquid it is difficult to tag a market price. This may explain why only 50% of the underlying value can be loaned. Not all expensive art is considered. Athena Art has a list of 80 artists, which feature well known artist as Monet, Picasso, Willem de Kooning, Georgia O’Keefe etc.

Additional question is whether the search for yield impacted the art market. With global yields at low levels, alternative investments become more in focus, which also affects art prices. When there’s an abrupt change in this development, for instance by rates moving higher, it is uncertain how sensitive the art market is. What’s also interesting, is that the earlier mention work of art by Gauguin was possibly (yet unknown) sold to State of Qatar, as was the second most expensive painting (Cézanne’s “The Card Players” for USD 259 million). Third most expensive (“No.6 (Violet, Green and Red)” by Markk Rothko for USD 186 million) to Dmitry Rybolovlev, a Russian oligarch. One could argue that these record prices were all driven by oil revenues. With the collapse of commodity prices, will the art market be affected in the future? With China’s growth concerns, will the 55 Chinese art funds & trust be affected by a decline in wealth? After all, with the Chinese stock market collapse, a couple of billionaires saw their fortunes evaporate. How resilient is the art market to global forces?

This makes clear that the art market is not suitable for ordinary investors. It’s an insider market, not transparent and with valuation difficulties. After all, fine art remains priceless.

Die Genfer Privatbank Pictet sagt dem britischen Auktionshaus Sotheby’s den Kampf an. Das schreibt die «Handelszeitung» in ihrer neuesten Ausgabe.

Zusammen mit der US-Private-Equity-Firma Carlyle will Pictet mit der Belehnung von Kunstwerken sowohl Kredite vergeben als auch die Liquidität seiner Kunden erhöhen. Dazu haben Pictet und Carlyle eine gemeinsame Gesellschaft gegründet: Athena Art Finance mit Sitz in New York. Laut der Privatbank will Pictet «die erste Adresse für den bisher kaum bewirtschafteten Kunstkreditmarkt werden».

Sotheby's mit mehr Erfahrung

Erste Deals sind laut Athena-Gründer Andrea Danese bereits unterschriftsreif, das geht «quer durch die Blue Chips der Kunstszene – darunter Alte Meister und Nachkriegswerke». Athena wurde mit einem Eigenkapital von 280 Millionen Dollar ausgestattet. Hiervon steuerte Pictet rund ein Drittel bei, der Rest stammt von Carlyle. Pictet fischt damit im Teich von Hauptkonkurrent Sotheby’s.

Das Auktionshaus mit Sitz in London betreibt dieses Geschäft seit fast 30 Jahren. Der Chef von Sotheby’s Financial Services, Jan Prasens, sieht den Vorstoss von Pictet gelassen: «Aufgrund unserer Erfahrung hinsichtlich der Bewertung von Kunst – etwas, worauf traditionelle Finanzanstalten nicht zurückgreifen können – sind Kunstgegenstände für uns eine sichere Quelle für Darlehen», sagt Prasens zur «Handelszeitung».

Mehr zum Thema lesen Sie in der neuen «Handelszeitung», ab Donnerstag am Kiosk odermit Abo bequem jede Woche im Briefkasten.

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How the One Percent Get a One Percent Interest Rate

Being part of the 1 percent just took on new meaning.

That’s about the rate at which billionaire Steve Wynn is borrowing against his extensive art collection as wealth management firms push to win business from the world’s ultra-rich.

The casino mogul pledged 59 works of art as collateral for a loan from Bank of America Corp., one of several steps he recently took to raise cash, according to interviews and regulatory filings. The 73-year-old founder of Wynn Resorts Ltd. said the arrangements permit him to borrow at less than 1 percent.

“This is a great time to be poised with ample cash,” Wynn said in an e-mail through his spokesman.

The favorable terms highlight the increasing competition in the market for art lending, where wealth managers are seeking to win and retain top clients with lower interest rates than ever. Traditionally dominated by auction houses and banks such as Citigroup Inc., JPMorgan Chase & Co. and Bank of America, record prices for art and a surge in wealth among the world’s richest are attracting new

players, including one venture backed by private equity firm Carlyle Group LP and Swiss wealth manager Pictet Group.

“We regularly hear from people interested in getting into this field, including private equity firms, commercial banks and individuals who want to fund deals on a one-off basis," said Thomas C. Danziger, managing partner at Danziger, Danziger & Muro who represents major banks and other lenders in structuring and documenting art loans. “My expectation is that it will only grow.”

Sweetened Terms

Wealth managers traditionally offered art lending as a courtesy service to their wealthiest clients. Some have sweetened the terms, issuing art loans based on a benchmark rate such as the three-month London interbank offered rate plus an additional 125 basis points, according to three people who familiar with the typical terms of such loans.

Consumers with more pedestrian levels of wealth pay a multiple of that, depending on their creditworthiness and collateral. The average rate for a $100,000 home equity floating rate loan is 3.79 percent, according to Bankrate.com. Pawnbrokers in New York can charge interest at annual rates of up to 48 percent.

Even for a wealthy bank client, Wynn’s rate is unusually low. While he didn’t disclose how the loan’s term, the maximum length for art loans is typically three to five years. Treasuries due in 2020 yield about 139 basis points, or 1.39 percent.

Personal Fortune

Wynn’s personal fortune has fallen about 30 percent this year to an estimated $1.9 billion, according to the Bloomberg Billionaires Index. That largely reflects the plummeting value of his stake in Wynn Resorts, whose shares have lost more than half their value in 2015, ranking the casino company as the fourth-worst performer in the Standard & Poor’s 500 Index.

Among the art listed is Jackson Pollock’s “Number 12,” which at its last public auction at Sotheby’s in May fetched $18 million. The list also includes a sculpture of a male head by Alberto Giacometti that sold for $50 million at Sotheby’s in 2013, and Andy Warhol’s “Double Elvis (Ferus Type)” that sold for $37 million in 2012.

‘Major Client’

Extremely low rates usually are reserved for clients already doing a lot of business with the bank or as an inducement for them to sign up for more services, said Andrew Rose, a principal at Art Finance Partners, a boutique art financing firm in New York. Typical rates for art loans run as high as 5 percent, he said.

“It’s the same as if you are a major client of Citigroup or Chase, and they give you a great deal on a mortgage,” Rose said.

Officials for JPMorgan and Citigroup declined to comment.

“Art lending fills an important need for some of our art owner clients, and therefore, our portfolio has grown,” said Julia Ehrenfeld, a spokeswoman for

Bank of America, which provides wealth management services through its U.S. Trust private

bank. “Our rates are competitive in the market and take into account the entire client relationship.”

New Players

Art loans are perhaps the most established portion of a market in which people take out personal loans on possessions of all types, ranging from wine collections to historical artifacts. Loans backed by art are expected to surpass $10 billion this year, doubling since 2011, according to art market research company Skate’s.

Carlyle and the private equity unit of Pictet, a Geneva-based wealth manager, said this month they are backing Athena Art Finance Corp. with $280 million of equity capital. Athena will offer loans equaling as much as 50 percent of the low estimate of a client’s collection, ranging from six months to seven years.

Morgan Stanley launched its Blue Rider Group unit in July, run by wealth manager Dan Desmond and Lauren Welsh Sparrow, to offer art loans and also handle investments for artists, collectors and museums.

Falcon Group, which specializes in corporate financing, last year started offering art loans through its Falcon Fine Art. The volume of deals is expected to reach $100

million in the next six months, said Chris Howarth, director at Falcon Fine Art.

Fastest Growth

For Sotheby’s, its financial services division has become the most profitable and fastest growing unit by making loans and advances that often help land consignments for the New York-based auction house, according to a Moody’s report published last month. Sotheby’s in June almost doubled the credit facility used to finance art loans to $1 billion, according to filings.

Although its interest rates are higher than at banks, Sotheby’s global presence, in-house network of experts and lawyers, and 25 years of underwriting allows it to move faster than others, Jan Prasens, managing director of Sotheby’s Financial Services, said in an interview.

Bank of America wants to double the $3 billion of art loans it has outstanding, in part by offering bargain basement rates, according to a person familiar with the Charlotte, North Carolina, company. Regulatory filings show that Bank of America has provided art loans to investor Arthur Samberg as well as a trust tied to Howard Marks, co-chairman of Oaktree Capital Group LLC, a Los Angeles-based money management firm.

One of the nation’s best known collectors, Wynn often displays art in his resorts, including several of the pieces pledged to Bank of America. He joins Steven A. Cohen, Tom Hill and Michael Steinhardt among the wealthy collectors who have previously taken bank loans against their art holdings, according to filings. Collectors typically take loans to fund other ventures, buy more art, or pay off debt.

“We are seeing more credit demand in the business than I have ever seen before,” said Asher Edelman, founder and president of art-financing company ArtAssure Ltd. “There’s an awful lot of demand from collectors who need cash and dealers who see opportunities.”

Before stealing $6,000 in jewelry, two thieves signed their names in a Floridia gallery’s guestbook. [The Tampa Tribune] Jaden Smith says he’ll disappear in ten years. Here are his plans: “It’ll be kind of like Banksy. But in a different way. More of a social impact. Helping people. But through art installations.” [GQ] Arts Council England has alerted museums in the United Kingdom to possible thefts and damage soon, warning that they should be “extra vigilant to visitors paying undue attention to collections.” [The Art Newspaper] A squatter at a San Francisco mansion walked away with $300,000 in art. Among the takings, which have been recovered: a drawing of a hippopotamus, Diebenkorn knockoffs, and a humming bird painting. [SF Gate] The Baltimore Museum of Art has received a $3 million donation toward a new education center. [Baltimore Sun] The Milwaukee Art Museum is expanding into an adjacent park valued at $14 million. [Milwaukee Journal Sentinel] Stockholm’s subway system is lined with art dating from when it was built, in the 19th century, to now. It’s like a tour through the past century of Swedish art history. [The Guardian] Giorgio Pace is now the commercial advisor for Dasha Zhukova’s Garage Museum of Contemporary Art, in Moscow. [WWD] Miles Weiss and Katya Kazakina on how Steve Wynn used art to get a 1 percent loan from Bank of America. [Bloomberg] Rita McBride at Alexander and Bonin. [Contemporary Art Daily]

Anticipi di denaro con arte a pegno. È l’art-lending: a New York spunta una nuova società per i collezionisti che vogliono impegnare opere da milioni di dollari in cambio di liquidità

Scritto da Marta Pettinau | mercoledì, 21 ottobre 2015 · 0

Mentre l’auction week di novembre si avvicina, a New York è appena stata lanciata una nuova società di art-lending, l’Athena Art Finance, con 280 milioni di dollari di capitale predisposti dal Carlyle Group e dalla società di private equity dello svizzero Gruppo Pictet. Se vi state chiedendo cos’è l’art-lending, si tratta di un prestito di denaro a fronte del deposito di una o più opere d’arte a garanzia; uno strumento che permette ai collezionisti – parliamo di gente che spende milioni di dollari in arte – di impegnare pezzi di elevato valore sul mercato in cambio di liquidità. Lo scorso anno Forbes notava che il business dell’art-lending è ancora acerbo, complesso e poco allettante per i collezionisti, ma che se dovessero migliorare le condizioni potrebbe rendere l’arte un investimento ancora più appetibile. Spesso, infatti, chi ha capitali da far fruttare tentenna di fronte ad un Picasso, perché l’arte è un illiquid asset, un bene che difficilmente può essere scambiato con una liquidità immediata. La neonata società newyorkese offrirà fino al 50% del valore minimo stimato delle singole opere o collezioni, per prestiti con durata dai 6 mesi ai 7 anni. “Il nostro obiettivo consiste nell’essere una risorsa finanziaria indipendente, fidata e flessibile per il mercato dell’arte”, spiega il CEO Andrea Danese. Che significa – anche – che L’Athena Art Finance non ha intenzione di vendere o appropriarsi delle opere depositate in pegno. A differenza di molti competitor sulla piazza…

Being part of the 1 per cent just took on new meaning. That's about the rate at which US casino billionaire Steve Wynn is borrowing against his extensive art collection as wealth management firms push to win business from the world's ultra- rich. The gambling mogul pledged 59 works of art as collateral for a loan from Bank of America, one of several steps he recently took to raise cash, according to interviews and regulatory filings. The 73-year-old founder of Wynn Resorts said the arrangements permit him to borrow at less than 1 per cent. "This is a great time to be poised with ample cash," Wynn said in an e-mail through his spokesman. The favourable terms highlight the increasing competition in the market for art lending, where wealth managers are seeking to win and retain top clients with lower interest rates than ever. Traditionally dominated by auction houses and banks such as Citigroup, JPMorgan Chase and Bank of America, record prices for art and a surge in wealth among the world's richest are attracting new players, including one venture backed by private equity firm Carlyle Group and Swiss wealth manager Pictet Group.

"We regularly hear from people interested in getting into this field, including private equity firms, commercial banks and individuals who want to fund deals on a one-off basis," said Thomas C. Danziger, managing partner at Danziger, Danziger & Muro who represents major banks and other lenders in structuring and documenting art loans. "My expectation is that it will only grow." Sweetened terms Wealth managers traditionally offered art lending as a courtesy service to their wealthiest clients. Some have sweetened the terms, issuing art loans based on a benchmark rate such as the three-month London interbank offered rate plus an additional 125 basis points, according to three people who familiar with the typical terms of such loans. Consumers with more pedestrian levels of wealth pay a multiple of that, depending on their creditworthiness and collateral. In the US, the average rate for a $US100,000 ($137,576) home equity variable rate loan is 3.79 per cent, according to Bankrate.com. Pawnbrokers in New York can charge interest at annual rates of up to 48 per cent. Even for a wealthy bank client, Wynn's rate is unusually low. While he didn't disclose how the loan's term, the maximum length for art loans is typically three to five years. Treasuries due in 2020 yield about 139 basis points, or 1.39 per cent. Personal fortune Wynn's personal fortune has fallen about 30 per cent this year to an estimated $US1.9 billion, according to the Bloomberg Billionaires Index. That largely reflects the plummeting value of his stake in Wynn Resorts, whose shares have lost more than half their value in 2015, ranking the casino company as the one of the five worst performers in the Standard & Poor's 500 Index. The collateral backing the loan could be valued at $US200 million, said Beverly Schreiber Jacoby, who has done art appraisals for borrowers and lenders for 25 years and who reviewed the filing but hasn't seen the works in person. Schreiber Jacoby in 2010 testified as an expert in a high-profile dispute between Christie's and CNET Networks founder Halsey Minor concerning the value of a collection of Richard Prince paintings. Wynn, through his spokesman, said the estimate was inaccurate but declined to provide a number. Among the art listed is Jackson Pollock's "Number 12," which at its last public auction at Sotheby's in May fetched $US18 million. The list also includes a sculpture of a male head by Alberto Giacometti that sold for $US50 million at Sotheby's in 2013, and Andy Warhol's "Double Elvis (Ferus Type)" that sold for $US37 million in 2012.

'Major client' Extremely low rates usually are reserved for clients already doing a lot of business with the bank or as an inducement for them to sign up for more services, said Andrew Rose, a principal at Art Finance Partners, a boutique art financing firm in New York. Typical rates for art loans run as high as 5 per cent, he said. "It's the same as if you are a major client of Citigroup or Chase, and they give you a great deal on a mortgage," Rose said. "Art lending fills an important need for some of our art owner clients, and therefore, our portfolio has grown," said Julia Ehrenfeld, a spokeswoman for Bank of America, which provides wealth management services through its US Trust private bank. "Our rates are competitive in the market and take into account the entire client relationship." New players Art loans are perhaps the most established portion of a market in which people take out personal loans on possessions of all types, ranging from wine collections to historical artifacts. Loans backed by art are expected to surpass $US10 billion this year, doubling since 2011, according to art market research company Skate's. Carlyle and the private equity unit of Pictet, a Geneva-based wealth manager, said this month they are backing Athena Art Finance with $US280 million of equity capital. Athena will offer loans equalling as much as 50 per cent of the low estimate of a client's collection, ranging from six months to seven years. Morgan Stanley launched its Blue Rider Group unit in July, run by wealth manager Dan Desmond and Lauren Welsh Sparrow, to offer art loans and also handle investments for artists, collectors and museums. Falcon Group, which specialises in corporate financing, last year started offering art loans through its Falcon Fine Art. The volume of deals is expected to reach $US100 million in the next six months, said Chris Howarth, director at Falcon Fine Art. Fastest growth For Sotheby's, its financial services division has become the most profitable and fastest growing unit by making loans and advances that often help land consignments for the New York-based auction house, according to a Moody's report published last month. Sotheby's in June almost doubled the credit facility used to finance art loans to $US1 billion, according to filings. Although its interest rates are higher than at banks, Sotheby's global presence, in-house network of experts and lawyers, and 25 years of underwriting allows it to move faster than others, Jan Prasens, managing director of Sotheby's Financial Services, said in an interview.

Bank of America wants to double the $US3 billion of art loans it has outstanding, in part by offering bargain basement rates, according to a person familiar with the company. Regulatory filings show that Bank of America has provided art loans to investor Arthur Samberg as well as a trust tied to Howard Marks, co-chairman of Oaktree Capital, a Los Angeles-based money management firm. One of the nation's best known collectors, Wynn often displays art in his resorts, including several of the pieces pledged to Bank of America. His love for showing off his collection drew headlines a decade ago when the billonaire accidentally punched a dollar-sized hole with his elbow in a Pablo Picasso painting he was about to sell as he chatted with friends in front of the portrait. With this week's filing, Wynn joins Steven A. Cohen, Tom Hill and Michael Steinhardt among the wealthy collectors who have previously taken bank loans against their art holdings, according to filings. Collectors typically take loans to fund other ventures, buy more art, or pay off debt. "We are seeing more credit demand in the business than I have ever seen before," said Asher Edelman, founder and president of art-financing company ArtAssure. "There's an awful lot of demand from collectors who need cash and dealers who see opportunities."