ORIGINATOR PROFILE
Athena Art Finance Corp.
Athena Art Finance was formed in 2015 as an institutional asset-based lender against high-value fine art, and, as of April 8, 2019, is a wholly-owned indirect subsidiary of YieldStreet Inc. The Originator focuses on the premium segment of the art market which has exhibited a proven market depth with multiple sales channels. The Originator’s growth to date can be attributed to key art market partnerships and strong borrower relationships. The Originator’s credit underwriting follows a disciplined process that is focused on the borrower, collateral and loan structure. The Originator’s performance reflects the specialized credit and collateral screening policies that address both upfront due diligence and on-going monitoring processes. These processes are supported by internal data analytics developed by the Originator to assist in consistent decision making and efficient review and management of its collateral.
Lending Methodology
The Originator developed underwriting standards that guide its lending activities designed to safeguard its invested capital which may include:
- Artists with Stable Pricing & Liquidity
- Targeted Maximum LTV of 50.0%
- Minimum Loan Amount of $1.0M
- Appraisal & Condition Reports
- First Priority Perfected Security Interests
- US Dollar Denominated
- Cash Reserves for Interest & Other Expenses
- Investment Committee Approval
It is important to note that the Originator’s underwriting standards are the framework under which all transactions are reviewed and any proposed deviations or exceptions from these standards may be considered on a selective basis. The Originator’s diligence process is composed of six distinct areas:
- Loan Request – Understanding the loan’s purpose and use of proceeds while gathering preliminary information
- Borrower Information – Collecting borrower related information including identification and financial documents
- KYC & AML Review – Assessing all entities related to the transaction for litigation, sanctions, bankruptcy, etc.
- Borrower Analysis – Determining the borrower’s creditworthiness through FICO Scores, financials, net worth, etc.
- Third-Party Guarantees (if applicable) – Reviewing the assets and income of any person(s) listed as a loan guarantor.
- Collateral Analysis – Evaluating the collateral’s value, condition, location, authenticity, ownership, liquidity, etc.
Portfolio Management
The Originator is responsible for monitoring the loan and collateral immediately following the close of a transaction. This servicing process is performed by the Originator as a form of continuing diligence to ensure the loan and collateral are consistently in compliance with the terms of the transaction. The multi-faceted servicing process includes:
- Tracking of information, compliance and financial covenants via the Originator’s customer relationship management (CRM) software. The CRM alerts the Originator to all reporting and post-close deliverables.
- Pre-clearance lists are established for storage companies, shipping companies, appraisers and countries to efficiently address several typical borrower requests over each loan’s term.
- The transfer or movement of collateral is reviewed prior to consent by the Originator. The review consists of both logistic and legal diligence to ensure the collateral’s protection and the Originator’s perfected senior lien.
- Amendments and modifications to the loan are coordinated through the related relationship manager to vet the request in accordance with the Originator’s internal lending criteria.
- A summary presentation of all data points collected is circulated internally and to investors for analysis quarterly.
- Annual reviews are conducted and include an update of the appraisal and condition report (if applicable) of the collateral. The updated information allows the Originator to identify and address any adverse impacts to the loan’s value or collateral coverage.
Management
Rebecca Fine
Managing Director, Athena Art FinanceFor more than 25 years, Ms. Fine has provided legal and business advice to art collectors, galleries, dealers, and financial services clients. Prior to joining Athena in 2015, Ms. Fine was a partner at Schindler Cohen & Hochman LLP, a litigation and art law boutique. Ms. Fine was previously an associate at the law firms of Simpson Thacher & Bartlett LLP and Hale and Dorr, LLP (now Wilmer Hale). Fluent in French and Italian, Ms. Fine has extensive cross-border transactional and litigation experience and has acted as liaison counsel to corporations and ultra-high net worth individuals in many in foreign (multinational) jurisdictions.
Ms. Fine is the Chair of the New York City Bar Association Art Law Subcommittee on Art Finance, Funds and Fiduciaries. A recognized speaker on the topics of art law, finance and business, Ms. Fine has lectured widely to various professional and academic audiences, including Sotheby’s Institute of Art, Christie’s Education, and Cardozo Law School’s Fashion Arts Media Entertainment Law Center. She also sits on the Board of Creative Art Works, a nonprofit that empowers young people in New York City through the visual and multimedia arts. Ms. Fine graduated from Columbia College and received her J.D. from Columbia University School of Law, where she was an editor of the VLA Journal of Law and the Arts.
Maureen Keating
Senior Investment AssociateMaureen joined Athena Art Finance as a Senior Investment Associate in 2021. Prior to joining Athena, Maureen was an Associate at Jefferies Credit Partners, a private credit alternatives group within Jefferies, focusing specifically on the Direct Lending strategy. While at JCP, Maureen took an active role in the underwriting and portfolio management processes, providing financing solutions for private equity backed transactions across all sectors. Maureen graduated from the University of Notre Dame with a B.B.A. in Finance and a second major in Anthropology.
2 Represents an average net realized internal rate of return (IRR) with respect to all matured investments in your portfolio, utilizing the effective dates and amounts to and from the investments and net of management fees and all other expenses charged to the investments. Past performance is not a reliable indicator of future results and should not be relied upon as the basis for making an investment decision. All securities involve risk and may result in significant losses, including the loss of principal invested.[read more]