Partnership with Clarice Pecori Giraldi

Overstone is proud to announce our agreement in Clarice Pecori Giraldi Art Advisory in Italy.  

The risk management departments of banks, financial companies and auction houses have long lacked objective means to evaluate and accept works of art as collateral in various credit transactions. This has been a major obstacle towards recognising art as a stable asset rather than a passion, and especially prevents art-backed transactions from going forward. Thus, both qualitative and quantitative methods are necessary to confidently offer collector clients the possibility of leveraging their art.  

While art lending in the United States has long been established, European interest is more recent, and this partnership with CPG Art Advisory can facilitate that. Overstone’s tools – providing risk modelling technologies – will now be offered to large Italian institutions such as Banca MPS, Banca d’Italia, Banca Intesa and Generali.  

This partnership with CPG Art Advisory responds to the specific needs of institutions, banking and otherwise, to be able to value, assess and monitor artworks on their balance sheets. Since the Covid-19 crisis, customers of large American and European banks showed the need for greater liquidity from their alternative assets. Art has a much lower volatility than other asset classes, and doesn’t require constant margin calls as is the case of other assets like equity.  

While artwork price risk remains a given, the greatest risk in this context is linked to liquidity, that is, not being able to meet a certain price or sell at all. Overstone’s risk profiling and monitoring are built on 2.5 million auction results and 2 years of work with data scientists, taking into account dozens of very specific variables and their interactions. Qualitative risks, usually the domain of experts, are also quantified. The tools address environmental impact on an artwork and its materials, as well as the potential for any disputes over authenticity.  

Read the full press article here. 

Overstone liquidity reports can be issued within 24-48 hours in reports – click here to get in touch. Our services are available in the USA, Europe and Asia.