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Art-Backed Financing Products
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Investment Product Proposal

Art-Backed
Financing Products

For Private Discussion Only

Institutional-grade investment products for qualified investors seeking exposure to blue-chip art — structured with rigorous underwriting, comprehensive risk safeguards, and technology-enabled execution.

Blue-chip art has outperformed the S&P 500 over the last 25 years but remains critically illiquid. We bridge this gap.
25+ Years
Art indices outperformed S&P 500 over the long term
Art Market Research International
< 0.8%
Blue-chip art loan default rate
Industry Data
50-60%
Conservative LTV ratios for secured lending
ArtWise Underwriting Standards
$10K+
Minimum investment for qualified investors
Product Terms

Prepared by: ArtWise   |   Date: May 2026

Section 01

Purpose of This Document

This investment teaser is intended for initial investor engagement only. It is designed to introduce ArtWise's Investment Products and indicative commercial terms.

Section 02

Executive Snapshot

Item Summary
Platform ArtWise is an institutional-grade platform that places privately held blue-chip artworks for financing and investable liquidity opportunities.
Market Gap Blue-chip art represents a high value asset sector, but remains illiquid due to valuation opacity, custody complexity, slow legacy banking processes and limited specialist infrastructure.
Investment Product Opportunity Access to art-backed private credit through a Loan Tranche, and separately, art-market appreciation exposure through an Investment Tranche.
Distribution Plan Private placement to qualified professional investors through a Hong Kong financial institution, subject to final legal, regulatory and product approvals.
Target Launch H2 2026, subject to final product structuring, due diligence, documentation and distributor readiness.
Important: This document is not an offer to sell or a solicitation to buy securities, fund interests, tokens, loans or any financial product. Terms are preliminary and subject to legal, tax, regulatory, valuation and commercial review.
Section 03

Investment Rationale & Product Positioning

Why Art-Backed Liquidity

  • Structural liquidity gap: Collectors and art owners may hold significant value in artworks but face slow, expensive or prohibitive routes to access liquidity.
  • Private credit demand: Qualified investors continue to seek differentiated sources of secured yield beyond traditional corporate and real estate credit.
  • Tangible collateral: Blue-chip artworks serve as secure physical collateral when supported by independent valuation, custody, insurance and legal security.
  • Underpenetrated market: Art finance remains less institutionalized than lending against real estate, securities portfolios, yachts or other luxury assets.
  • Uncorrelated market: Portfolio diversification opportunity through exposure to an under-financialized asset class.
  • ArtWise Positioning

    ArtWise: Art Asset Originations & Investment Products specialist facilitating blue-chip art finance.

    ArtWise combines expertise in art market, institutional financial services, independent valuation, custody/insurance coordination and technology-enabled execution.

    Art Market Indices vs FTSE 100 & S&P 500
    2000-2024: Blue-chip art demonstrates consistent long-term outperformance
    Section 04

    Two Independent Product Offerings

    Product 1

    Loan Tranche

    Core Exposure: Secured credit exposure backed by blue-chip artwork collateral.

    Investor Fit:

    Qualified investors seeking income-oriented, short-to-medium-fixed duration private credit exposure.

    Indicative Terms:

    • Target IRR: 10-12%
    • Tenor: Up to 12 months
    • LTV: Below appraised value
    Product 2

    Investment Tranche

    Core Exposure: Fractionalized art-market appreciation exposure through selected blue chip artworks or curated art portfolios.

    Investor Fit:

    Qualified investors seeking alternative asset exposure to blue chip art and potential capital appreciation.

    Indicative Terms:

    • Target IRR: ~20% net
    • Holding Period: Long-term
    • Exit: Auction, private sale
    Product Structure: Both products are structured as private placements through a Hong Kong financial institution, subject to final legal, regulatory and product approvals. Detailed offering documents will be provided to qualified investors upon completion of due diligence and execution of appropriate agreements.
    Section 05

    Offering 1: Loan Tranche

    Preliminary fact sheet for initial discussion only

    Product Objective

    The Loan Tranche is designed to provide qualified investors with exposure to short- to medium-duration private credit secured by blue-chip artworks. Investor proceeds are expected to finance loans to approved art owners or collectors, with each loan supported by independent valuation, custody controls, insurance coverage and transaction-specific legal documentation.

    Terms

    Term Indicative Description
    Offering Type Private placement; instrument to be confirmed by distributor.
    Target Investors Qualified professional investors
    Underlying Exposure Loan receivables secured by eligible blue-chip artworks and related collateral/security package.
    Return Profile Income-oriented return from borrower interest payments and/or loan participation economics.
    Indicative Tenor Expected short- to medium-duration up to 12 months
    Indicative LTV Conservative loan-to-value discipline, generally expected to be below independently appraised value with appropriate valuation haircuts.
    Collateral Standards Blue-chip artworks with verified provenance, title review, condition assessment, market liquidity and independent valuation.
    Custody & Insurance Approved custody arrangements and all-risk insurance coverage to be established before or at funding.
    Investor Reporting Periodic reporting on loan status, collateral monitoring, payment status and material events.
    Liquidity Primarily hold-to-maturity; any transfer or redemption feature subject to product terms and regulatory restrictions.
    Section 06

    Offering 2: Investment Tranche

    Preliminary fact sheet for initial discussion only

    Product Objective

    The Investment Tranche is designed for qualified investors seeking exposure to the potential appreciation of select blue-chip artworks or curated art portfolios. Investors can access exposure to blue chip art without having to directly source, store or manage artworks. The product provides art-market participation opportunities with unique return drivers, expected investment horizons, exit strategies and risk disclosures.

    Terms

    Term Indicative Description
    Offering Type Private placement; instrument to be confirmed by distributor.
    Target Investors Qualified investors seeking alternative asset exposure, portfolio diversification and potential art-market upside.
    Underlying Exposure Selected artworks or curated portfolios of blue-chip artworks, subject to independent due diligence.
    Return Profile Capital appreciation potential upon sales, private placement or other permitted exits. Returns are not fixed or guaranteed. Target ~20% net IRR.
    Indicative Holding Period Longer-duration than the Loan Tranche; target holding period to be advised by product terms and asset strategy.
    Asset Selection Works selected based on artist quality, provenance, condition, market depth, acquisition price discipline and exit optionality.
    Custody & Insurance Artwork to be maintained under approved custody and insurance arrangements during the investment period.
    Valuation Updates Periodic independent valuation or market reviews, market conditions and product documentation.
    Exit Pathways Private sale, auction sale, dealer/brokered sale, portfolio sale or other permitted exit route.
    Liquidity Illiquid investment exposure; any transfer mechanism subject to offering documents, investor eligibility and regulatory restrictions.
    Section 07

    Institutional Grade Risk Safeguards

    Initial disclosure only

    High-Level Risk Safeguards

    Valuation

    Proprietary model combining independent third-party appraisals and market comparable based on thorough data analytics.

    Condition

    Professional condition review where appropriate; works with material unresolved concerns to be excluded.

    Insurance

    Appropriate insurance coverage during storage and movement, subject to product and collateral requirements.

    Title & Provenance

    Review of ownership history, provenance records, legal title and encumbrances before acceptance.

    Custody

    Use of approved art storage, vault or freeport arrangements, depending on transaction structure and jurisdiction.

    Compliance

    Investor qualification, KYC/AML, sanctions screening and distributor suitability processes.

    Technology Infrastructure

    Digital records, reporting and tokenization tools may be used as operational infrastructure, subject to legal and regulatory review.

    Valuation Safeguard: ArtWise employs a proprietary valuation methodology combining independent third-party appraisals with market comparable analysis. All valuations are subject to appropriate haircuts and conservative underwriting standards.
    Section 08

    Investment Process

    Typical Deal Flow

    Stage Description
    1. Origination Blue-chip artworks sourced through established collector, gallery, and auction house relationships
    2. Due Diligence Independent authentication, valuation, provenance review, and legal title verification
    3. Structuring Product packaging under Hong Kong regulatory framework; investor documentation prepared
    4. Distribution Private placement to qualified investors through licensed distribution partner
    5. Ongoing Management Custody, insurance, periodic valuation, investor reporting
    6. Exit Auction sale, private sale, or other permitted exit pathway
    "Transforming blue-chip art into institutional-grade investment products."
    ARTWISE
    Art-Backed Financing Products
    Hong Kong · Singapore · 2026

    Important Disclosures

    This document is provided for informational purposes only and does not constitute an offer, solicitation, or recommendation to buy, hold, or sell any security or investment product. The information contained herein is based on sources believed to be reliable but is not guaranteed as to accuracy or completeness.

    This investment teaser is intended for initial investor engagement only. It is designed to introduce ArtWise's Investment Products and indicative commercial terms. Terms are preliminary and subject to legal, tax, regulatory, valuation and commercial review.

    Past performance is not indicative of future results. All investments involve risk, including the potential loss of principal. Target returns are illustrative only and are not guaranteed. Actual returns will depend on various factors including market conditions, asset performance, and economic environment.

    Confidentiality Statement: This document and the information contained herein are strictly confidential and intended solely for the use of the individual or entity to whom it is addressed. No part of this document may be reproduced, distributed, or transmitted in any form or by any means, electronic or mechanical, without the prior written consent of ArtWise.

    Initial investor engagement version | Confidential | Detailed materials available only after investor qualification and NDA