YieldStreet, the digital platform for crowdfunded alternative investments including litigation finance and real estate, is expanding into art financing with the purchase of Athena Art Finance for $170MM.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
YieldStreet, the digital platform for crowdfunded alternative investments including litigation finance and real estate, is expanding into art financing with the purchase of Athena Art Finance for $170MM.
According to TechCrunch, Athena is YieldStreet’s first acquisition, and provides immediate expansion into a growing sector, that of art financing. Athena, which was founded in 2015 and until the sale was controlled by private equity behemoth Carlyle Group, provides loans to art dealers, collectors, and museums and galleries to buy fine art and other collectibles. The company has collected over $200MM in fees on originations, and has so far sustained no credit losses.
A recent Artnet study valued the art market at around $20B annually. The majority of that is being financed by private individuals, as opposed to companies or institutional investors, however with YieldStreet’s participation in the market, that could soon change.
YieldStreet – which has seen upwards of $650MM invested on its platform – made a name for itself offering retail investors exposure to asset classes traditionally limited to wealthy investors and institutions. Those include certain real estate investments and litigation finance deals.
Cynthia E. Sachs will continue as Athena’s CEO under YieldStreet’s management.
