Inside The Pawn Shop For The Ultra-Rich

Lender Luxury Asset Capital operates a pawn shop for the ultra-rich, offering quick, non-recourse loans against high-value collateral like Hermes handbags, rare books, artwork, Rolex watches, and diamonds. These items, worth tens to hundreds of thousands of dollars, are stored in climate-controlled rooms and safes in their Manhattan office, never for sale. The firm, founded in 2016 by Dewey Burke, functions with the mechanics of a pawn shop but the discretion of a Swiss bank. Clients, ranging from hedge fund managers to entrepreneurs, pledge assets for immediate cash, avoiding traditional bank loan complexities or outright sales. One client used an 8-carat diamond ring for a $600,000 loan after a margin call; another used an Emmy Award. Luxury Asset Capital, profitable within its first year, has lent over $1 billion through its online platform Borro and physical locations. They offer flexibility, lending against unique items like Super Bowl rings or samurai swords. The appeal lies in speed, discretion, and no personal guarantees. If loans aren't repaid, collateral is sold, often through auction houses. Handbags, especially Hermès Birkin and Kelly bags, are a fast-growing category, with clients using them as revolving lines of credit or bridge loans for other investments.