UBS Wealth Management America
has established a referral agreement with Emigrant Bank Fine Art
Finance, allowing clients to apply for loans of up to $150 million,
backed by their artwork and antiques as collateral.

A spokesperson told Family Wealth Report that prior to this
agreement, the firm had “no way of solving for certain ultra high net
worth client requests” in cases where art was part of the collateral
equation.

“UHNW clients consider art as another asset class, so forming a
referral agreement was a thoughtful way of adding a solution,” the
spokesperson said.

UBS's agreement with Emigrant involves a one-time referral fee. "But
it's important to note that UBS is not using its balance sheet on this
business - it is 100 per cent a referral agreement," the spokesperson
added.

According to a Reuters report, only 22 per cent of private
banks surveyed by Deloitte Luxembourg in 2011 said they advised clients
to consider art-collateralized loans. Nevertheless, one-third of
respondents said they were “giving thought” to adding art lending within
two to three years.