Sotheby’s is entering a new phase for its financial services division. The auction house’s lending business will now operate independently following the completion of a pivotal five-year investment partnership. Ancient, the investment firm that backed Sotheby’s Financial Services (SFS), has exited its stake as planned, marking the end of a period defined by dramatic portfolio growth and surging profitability.
A Strategic Exit After Period of Expansion
The departure of Ancient comes at a time when SFS has solidified its market position. Over the course of the five-year collaboration, the unit’s loan book expanded by more than $1 billion, and its profitability increased threefold. This growth trajectory raises the question of whether the division is now sufficiently robust to succeed on its own.
Recent activity in the capital markets provides a strong affirmative signal. In late January 2026, SFS successfully closed a $900 million securitization deal. This asset-backed security (ABS) issuance was notable for including loans collateralized not only by fine art but also by high-value collector cars, representing a diversification of its asset base. The Wall Street placement of these securities is viewed as a crowning achievement of the now-concluded partnership.
Should investors sell immediately? Or is it worth buying Sotheby's?
Fee Structure Realignment Across the Industry
Concurrent with this financial restructuring, Sotheby’s has implemented revised buyer’s premium rates, effective since February 13. The new fee schedule raises the threshold for the highest premium tier. A 28% charge now applies to hammer prices up to $2 million, increased from the previous ceiling of $1 million at 27%. For amounts between $2 million and $8 million, a 22% rate applies, with lots above $8 million incurring a 15% premium.
This move brings Sotheby’s in line with competitors Christie’s and Phillips, which also adjusted their terms in the first quarter of 2026. The industry-wide shift aims to stabilize margins in the high-end auction segment, where intense competition for major consignments often pressures house profitability.
The Road Ahead for Art-Backed Lending
With SFS returning to full operation under the Sotheby’s corporate umbrella, the art-secured lending market continues to gain prominence among collectors. A significant and enduring driver of demand is the ongoing massive intergenerational wealth transfer. Estimates indicate that approximately $6 trillion was inherited in 2025 alone, a trend that continues to bolster interest in tangible assets and the specialized financing solutions built around them.
Ad
Sotheby's Stock: Buy or Sell?! New Sotheby's Analysis from February 21 delivers the answer:
The latest Sotheby's figures speak for themselves: Urgent action needed for Sotheby's investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from February 21.
Sotheby's: Buy or sell? Read more here...
