Barker

Happy Holidays! A Quick Look back at some of what we’ve been up to at Barker in 2024: Assets priced: Art, Diamonds, Watches and our first Collector Cars! New clients: 4 Lenders and 1 Big Bank (our first!) Insurnace Partners: Munich Re (or latest partner!) AXA XL and Ensuro. We thank you all for your continued support. For 2025, look out for pricing private jets, more bank clients and a special surprise later in the year. We look forward to seeing you all in 2025! (We’re still working if you need us) #thebarkerprice

We’re thrilled to be partnering with Munich Re, and their pioneering AI team led by Michael Berger. It’s tremendously validating for our mission to bring trust and transparency to valuing alternative assets for the financial sector. #thebarkerprice #artificialintelligence #innovation #assetbackedlending

Alt-Asset Lenders! We'd like to hear from you to help grow our product. https://lnkd.in/gnefWb_G

📉 Luxury Market Trends & Lender Strategy 📉  With recent price declines in certain luxury asset classes, lenders are facing a critical shift: when asset values drop, loan-to-value (LTV) ratios rise. Higher LTV means greater risk for lenders, as the margin between the loan and asset value shrinks, potentially exposing them to losses in the event of borrower default. So, how do lenders mitigate this: 1. 𝗔𝗱𝗱𝗶𝘁𝗶𝗼𝗻𝗮𝗹 𝗖𝗼𝗹𝗹𝗮𝘁𝗲𝗿𝗮𝗹 – By securing extra assets from the borrower, the lender can rebalance the asset-to-loan ratio. 2. 𝗣𝗮𝗿𝘁𝗶𝗮𝗹 𝗟𝗼𝗮𝗻 𝗥𝗲𝗽𝗮𝘆𝗺𝗲𝗻𝘁 – Asking the borrower to pay down part of the loan (or, in some cases, adjusting interest rates) can help control risk. 3. 𝗜𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 & 𝗥𝗶𝘀𝗸 𝗧𝗿𝗮𝗻𝘀𝗳𝗲𝗿 – some insurance product allow for increasing LTV, transferring some of the exposure away from the lender. Cheat code - option 1 & 2 don’t make for a happy client… It’s all about preserving stability, as well as ensuring that the advance rate aligns with the lender’s risk tolerance. In a volatile market, these strategic moves can help safeguard assets – and relationships – in the long run. #AssetBasedLending #RiskManagement #LuxuryMarket #Finance

How to make more money in lending… We tansfer risk off balance sheet for our clients who lend against luxury assets. - So they can lend at higher LTVs 📈 - Lower their capital costs 📉 - And increase margin 💸 If that sounds interesting, get in touch, join us. #thebarkerprice #assetbackedlending #artificialintelligence

Luxury Asset Backed Lending is now prevalent across the world, but it still has major centers, some obvious, some less so. London has long played home to a large base of lenders in the sector - The Fine Art Group, Ploutos Associates, Suros Capital to name a few. New York - home to Sotheby's’s and Christie's’s, both of whom lend against luxury assets, is better known as the financial center of the world… And yet, interestingly, Miami now plays host to many of the biggest banks alt-lending arms - including Northern Trust and UBS. Similarly, Singapore has grown rapidly over the past decade in the alt-asset lending arena, just look at what HSBC is doing. Perhaps most surprisingly, Denver is home to one of the most prolific independent luxury asset lenders - Luxury Asset Capital - whose subsidiaries cross the US. Stepping back, it’s pretty clear that the theme connecting all these locations and companies is the HNW Individuals they rely on to succeed. Each location has large HNW populations, often their primary or secondary homes. So if you’re interested in learning more about alt-asset lending, or meeting the companies that do it, follow the money. #assetbackedlending #luxury #alternativeassets #financialservices #HNWI

Congrats Apollo Global Management, Inc. and Citi! This is super interesting and confirms the private lending growth we’re seeing from our clients.

Private credit is stepping up its game by moving into investment-grade territory! 🚀 As public debt markets tighten, private lenders are swooping in, offering loans to highly-rated borrowers. This expansion means lending against everything from music royalties to aviation, with an estimated $25 trillion addressable market according to Blackstone's Rob Horn. Insurers are also getting in on the action, loving the stability and attractive yields private credit provides. 📈 It’s all about more opportunities, less risk! #PrivateCredit #InvestmentGrade #FinanceInnovation

💡 How luxury asset owners can get creative in a down market. Selling high-value art has been tricky the past 12 months, so it's no surprise people are taking a different approach—Bloomberg confirms that instead of selling, people are borrowing against their art collections instead! 🖼 💸 When a high-value asset market cools and liquidity tightens, savvy individuals sit on the sidelines while STILL unlocking capital from the collateral, all without parting ways with their prized possessions.    Luxury asset-backed loans are booming, and private banks and lenders are more than happy to help. Unlike stocks, art and other collectible assets tend to hold value over time. Deloitte estimates outstanding loans against art alone could surpass $36B in 2024! Just because its not a sellers market, doesn't mean there isn't money to be had. To borrow from our spirit animal - Jeff Goldblum - "Life (money) finds a way". #ArtFinance #AssetBasedLending #WealthManagement #CreativeFinancing

Move over banks, the $1.5T (and growing) Private Credit Market's utilization of Asset-Based Lending is changing the game when it comes to lending. Shielded from sharp shifts in the economy and changes in a borrower's financial status, industry experts are ecstatic about the possibilities that ABL offers. Demand for ABL and the yields that they've been able to generate have some comparing the craze as "...the Taylor Swift of private credit". 🌟 Jess Larsen | Briarcliffe Credit Partners As investor demand for ABL strategies increase, so do the asset types that lenders are willing to accept as collateral. Think non-bankable assets like collector cars, private jets or art. Some of these funds are predicting 10% - 15% returns! 🎉 🙌 Said it in a tweet and it was still a knockout!* 🥊 *editor: we're so so sorry, that was terrible. #AssetBasedLending #PrivateCredit #TaylorSwift #ArtificialIntelligence #TheBarkerPrice