The business model leverages 80+ years of direct relationships with Spanish aristocratic families to acquire undocumented artworks preserved in historic palaces. Through a structured 6-stage value creation process—restoration, technical X-ray/pigment analysis, expert certification, registration with Patrimonio Histórico Español, and curated museum exhibitions—the artworks establish formal provenance and recognized international market value.
Key financial and operational parameters:
- Portfolio Coverage: Initial portfolio of 10 paintings from a Marquis palace with market values exceeding acquisition costs.
- Funding Allocation: €50 million total funding requirement allocated to art acquisitions, palace exhibition venue purchase, and authentication studies.
- Multiple Monetization Routes: Exit pathways include art-backed lending (LTV 25–35%), auction sales via Christie's/Sotheby's, private placement, and asset securitization.
Key Market Drivers
- High Annual Fixed Yield: Offers a 12% p.a. annual coupon paid annually/semi-annually.
- Substantial Collateral Buffer: Operates with a conservative 1:3 asset-to-funding coverage ratio, securing capital against high-value physical art assets.
- Exclusive Off-Market Access: Sourcing advantage built on decades of direct relationships with Spanish noble families whose collections remained intact through WWII.
- Institutional Authentication Process: Validated via technical reflectography, scientific pigment analysis, expert certification, and Patrimonio Histórico registration.
