Art securitization converts a collection into transferable securities without selling the works. The collection stays in one compartment, ring-fenced inside a Luxembourg SPV, and notes are issued from it under their own ISIN, so several holders can share the exposure while the collection stays intact and in one place.
A collection held by one family or one owner presents a problem when several people have a claim on its value. Selling breaks it up; holding it leaves the value locked. MTCM places the works in a compartment of one of its six Luxembourg SPVs, ring-fenced from every other deal, and notes carrying their own ISIN are issued from it. The works stay together, under agreed custody, while the exposure to their value can be divided and transferred. The compartment answers to the Luxembourg Securitization Law of 22 March 2004. It is bankruptcy remote in both directions, and the collection is off-balance sheet for the owner. The platform’s legal counsel is GSK Stockmann, and its auditors are PwC and Atwell.
Held in custody, transferred or listed like any other security.
Segregated by law from every other transaction on the platform.
Protection runs in both directions.
The exposure leaves the originator’s balance sheet.
Individual works or a defined group held as one collection.
Three-dimensional works, including pieces requiring specialist handling.
Editioned works where provenance and edition number are documented.
Vehicles with established provenance and specialist storage.
High-value timepieces and pieces with certified stones.
Certified stones held under documented custody.
Documented literary and historical material.
Catalogued collections with established market references.
Cellared collections with provenance and storage records.
Furniture, objects and design pieces with documented attribution.
Art securitization converts a collection into transferable securities without selling the works. The works are placed in one ring-fenced compartment of a Luxembourg SPV, which issues notes under their own ISIN, so exposure can be divided while the collection stays intact.
No. That is the point of the structure. The works are transferred into the compartment and stay together under agreed custody. What is divided and transferred is the note, not the collection.
It is agreed when the compartment is structured. The works are typically held in specialist storage under a documented custody arrangement, and may be lent for exhibition on terms set out at the outset.
By an independent specialist recognised in the relevant market, on a stated basis and at a stated date. The valuation is reviewed as part of the compartment’s audit and refreshed on an agreed schedule.
Yes. Notes are issued in denominations reflecting each holder’s share, so an uneven split does not require dividing the works. A holder who needs liquidity can transfer notes rather than forcing a sale.
No. MTCM is a securitization boutique, not a dealer, an adviser or an asset manager. Decisions about the collection stay with the owner or the adviser they appoint. MTCM structures and administers the compartment.
80+ active compartments · €2.5 bn+ assets structured. Indicative platform figures.