Annie Leibovitz Uses Her Photography As Loan Collateral

by Deidre Woollard (RSS feed)
Feb 25th 2009 at 1:30PM

Investors in trouble often but their art collections up for sale but you don't usually hear about it happening to the artists themselves. The NY Times reports that famous photographer Annie Leibovitz borrowed $5 million from a company called Art Capital Group last fall and in December, she borrowed $10.5 million more from them. Her collateral didn't just include her homes but also the rights to all of her photographs. Considering Leibovitz's breadth of work, the hundreds of magazines and ad campaigns, this is quite an amazing move.

Art Capital Group is doing a tidy business in these uncertain times. The company issues loans of $500,000 or more at interest rates from six percent to 16 percent to those who have artwork worthy of making such a loan. It operates like a pawn shop; if you fail to pay and you lose your precious art. A Rubens hanging in the Art Capital offices once belonged to Veronica Hearst, the widow of Randolph Apperson Hearst. She mortgaged her art to hold onto Villa Venezio in Manalapan, Florida. She eventually lost the home in foreclosure.

Christie's and Sotheby's also offer loans for art but in those cases it is generally bridge loans for art that will be sold later at the auction house.Some choose to take a loan rather than sell, especially right now when pieces of art might be worth a good deal less than they were a year ago. Also borrowing against one's art collection can be a bit more discreet than a sudden sale.

Tags: annie leibovitz, AnnieLeibovitz, art, christies, loan

Filed under: Art

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Joe Feb 25th 2009 7:05PM

Why is it that every post by Deidre Woollard has some negative spin about the economy attached to it? Yes, we know things are not going as well as they have in the past. It does not have to be repeated in every post. Plenty of us still live very comfortable lives and do not believe the sky is falling. I come here to read about nice things not to listen constant comments about something being closed or sold off as “a sign of the times”. Deidre's posts are sooooooooo boring.

If you read this Deidre I am curious if you actually have any money to be in a position to be writing your doom reports about those who do? Or are you one of those jealous plebeians who take great joy when they see a successful person lose a bit of money?

NDPTAL85 Feb 25th 2009 8:54PM

Wow. I'm not quite sure I've seen a more asshat type post from a commenter. Yes there are still rich people around but the economy is also falling apart. You don't get to pick a website on the wide open internet to be your head in the sand refuge. If the thought that everyone isn't happy is killing your buzz.... then I'm sure you're the only one who cares.