Suros Capital has officially been launched to provide short-term lending facilities specifically aimed at people secured against luxury assets including jewellery, fine art, watches, luxury and classic cars.
Funded by alternative asset manager Crestline Investors Inc., Suros Capital will work with intermediaries because of their close contact with the widest range of potential clients.
According to director Ray Palmer, at a time when short-term lending is becoming ‘more complex, time consuming and ultimately slower’, borrowing against luxury assets provides a simple, fast alternative to raise capital.
He says: “We see a growing demand to raise capital quickly with the minimum of fuss that allows people to make use of their luxury assets as collateral for a loan.”
“Once Suros’ appraisers have valued the asset(s), an agreement is generated and once signed, funds are released. Most cases complete in less than 72 hours from first contact.”
“The intermediary, having made their recommendation based on their clients’ needs, refers them to us and we handle the whole process,” he adds.
With the new lockdown likely to further restrict conventional borrowing to raise capital, Palmer says the new facility will have even more appeal to advisers, whose customers need fast short-term finance.
Paul Aitken, founder of lending platform Borro and backer of Suros Capital, comments: “With Borro’s exit from the UK market in early 2019, the need for an alternative source of borrowing, not reliant on bricks and mortar, is today stronger than ever.”
“Borro lent about £220 million secured by luxury assets between 2012 and 2017 and generated annual returns after losses of about 35% and I am confident that Suros Capital can fill a similar need for simple, fast finance.”