Operation of a Successful Partnership

Partners' intended use for the vessel must be similar and compatible. While this may sound simple it can become a seriously complicated matter. The general cruise areas should be defined and documented.

Yachts must maintain a full-time captain, larger yachts should carry an appropriate support crew/staff. Partners or their employees should not perform any maintenance, repair, or attempt remodeling no matter how insignificant.

Yachts must have independent management with authority separate from individual partner's influence. Partners, family, friends, guests, should not expect to issue conflicting orders to the captain or crew.

The Partnership / Fractional Yacht Concept

We assume visitors are familiar with the shared ownership concept as various forms have been in practice since the early days of the Roman Empire. In the early 60's the concept was successfully applied to resort properties which often included yachts used by partners while on regular visits to their offshore island banks.

In the last 50 years the sharing has grown to include whole islands, insurance coverage, all types of aircraft, dockage and even jointly held stock and bond portfolios known as Mutual Funds. The residential and commercial condominium, while quite different, is a very popular offshoot of asset sharing now in practice around the world.

Fractional yacht ownership is in such favor that major Italian yacht builders offer fractional contracts on newly built yachts and encourage fractional sales through representing brokerages.

It's About Time

In the early stages, the appeal of this innovative financing is being able to acquire assets and services at a fraction of their cost. Many are attracted to fractional ownership because of the economic advantage of acquiring an expensive asset for a fraction of the price tag and enjoying the ongoing savings by sharing the upkeep expenses.

This is a very practical way of owning a mega yacht without the annual expense of maintenance, particularly if the yacht is used only part of the year.

However, yacht operation has become so specialized and time-consuming that even those who can afford the capital outlay might not have neither the time or inclination to spend in its proper management. Additionally, yachts have grown so much in size and complexity that they require professional servicing with around-the-clock care which becomes extremely expensive.

With time and money intertwined, fractional ownership with fractional math applications present interesting options with often amazing financial results. Fractional ownership may not be suitable for everyone but is certainly worthy of serious consideration.

YACHTING PARTNER
Innovative Fractional Yacht and Aircraft Ownership
For Carefree Good Times