Investment firm Art Capital recruits former JP Morgan executive to head the new European Commercial Real Estate back leveraged unit.

Art Capital, a leading player in the European art investment and finance industry, has announced the launch of a commercial real estate back leverage advisory division. This new division, named Art Capital Structured Finance (ACSF), will be led by Alexander (AJ) Storton, a former executive at JP Morgan Chase.

Storton brings a wealth of experience to ACSF, having previously established one of Europe's largest back leverage platforms at JP Morgan Chase. Prior to this, he spent six years at Bank of America Merrill Lynch. Stuart Blieschke, another co-founder of Art Capital, will also play a significant role in the new division. Blieschke is known for his work in art investment and entrepreneurship, and he has also established special situations and direct lending funds in the past.

The new division comes at a time when there is growing interest in the back leverage sector from both banks and debt funds. Back leverage introduces added complexities requiring specific structuring and risk evaluation knowledge. However, it can improve debt funds' pricing competitiveness and allow banks to maintain real estate exposure without direct risk, as Tim Vaughan, a partner at Art Capital, explained.

ACSF will initially advise clients on commercial real estate back leverage and loan-on-loan financing. The division is expected to work on more than £3bn of live mandates across the UK and Europe. In addition, Art Capital is aiming to close £1.5bn in transactions by the end of the third quarter of 2025.

The arrival of ACSF marks a significant milestone for Art Capital, as it becomes the first dedicated back leverage advisory business in Europe. Storton stated that back leverage has become a fundamental component of the European real estate capital markets. With the addition of ACSF, Art Capital is well-positioned to meet the growing demand for back leverage advisory services.

As for King Street, no information about its involvement in the new division was provided in the current paragraphs. However, it is clear that Art Capital is making strategic moves to expand its services and solidify its position as a leading player in the European finance industry.