Purpose

In response to a number of recent inquiries, we have brought our financial models up-to-date to provide you with a better analysis of opportunities under a yacht management program.

A Basic Model

Upon request, we can provide you with pro forma documentation that will provide a general overview of a typical yacht management programme.  The figures in the “year over year financial report” are taken from an actual limited partnership which is now complete; the limited partner has transferred the yacht back to his personal name, and sailed into the sunset as per his original plans.  We have, of course, slightly modified the numbers to protect the partner’s personal data. 

We believe this approach is the most promising way for enthusiastic boaters and yachts people to acquire the vessel of their dreams, and to place it into a sound charter management programme which allows you to pay off a significant amount of your investment over a four-to five-year agreement.

      A Model to Suit Your Own Circumstances

Since each investor’s circumstances differ, it is very difficult to draft a scenario which could apply across the board to everyone.  This is why, in each and every case, we prepare a series of assumptions tailored to the applicant’s financial standing, and we present these to a leading professional accountant for an expert opinion.

Financial Advantages

One of the features of the arrangement provides for the modelling of the purchase to generate an optimal amount of expenses in the first year.  As you know, the cost of the hull, accessories, superstructure finishing and power plant represent about 50% of the final cost of a vessel.  Such expenses as marketing, fleet development, preparation, scheduling, brochures, design, etc are called “soft costs’ and may be provided with an accelerated write off as expenses against other sources of revenue.  The attached sheet entitled “initial services” will give you a good first appreciation of one way of breaking out some of these costs.

The limited partnership approach has the added advantage of treating depreciation within the general partner’s envelope; thus passing on proceeds which may be used to deduct interest and other direct costs by the limited partner.

Since the general partner is in an arm’s length relationship with the limited partner, there is no question as to the legitimacy of the business relationship.  An added advantage is the personal protection offered the limited partner in case of liability on the high seas.  If the owner lists the vessel in his or her own name, any suit will name these owners directly, and they could very well be liable in a foreign court for amounts far exceeding their personal fortune.

Our partners are carefully selected from among the world most reputable charter companies.  We carefully monitor reports from our limited partners to build a comprehensive picture of each major operation, and their treatment of the owners, and of the yachts.  Our expertise in the larger yachts, trawlers and cruisers allows us to better inform our limited partners as to the various options which they may negotiate from the operator.  Our clients have most frequently selected from among the following vessels: 

Sail:            Beneteau 36 to 50

                   Tayana 36 to 46

                   Hunter 34 to 45

Power:         Kadey Krogen 36 to 52

                   Grand Banks 36 to 50

                   Stardust 52 to 85

                   Bluewater 46 to 65 etc.

Several other makes and models are available to investors, depending on what the various operators believe will sell on a charter programme.  In any case, we do not benefit from any commission or brokerage on your purchase, so we can remain completely objective.  But we can advise and inform to get you the best possible price and conditions in the selection and purchase of your yacht.

Once you have determined which yacht you would like to enter in a professional management programme, we approach the various managers to invite the best possible deal for you, considering revenue generation, and protection of your asset.  To date, our clients have preferred placing their yachts in the Caribbean by a very wide margin.

We are not promoting this programme, and we do not engage in the sale or promotion of securities or investments.  You simply approach us to advise you on the most appropriate model for you to acquire a yacht, and to have it well taken care of while it earns revenue for you.

CONTACT

Email: caelis2@gmail.com