In this case, Enness Global was approached by a UK national and Monaco resident seeking to release liquidity from a high-value luxury asset: their yacht. The client’s goal was to fund a high-value residential property renovation, a project that was both time-sensitive and strategically important. They wanted immediate access to capital without selling the yacht outright, allowing them to preserve ownership and maintain flexibility.
The primary challenge in this case was the niche nature of yacht-backed lending. Many lenders are reluctant to finance yachts that are simultaneously marketed for sale, due to the uncertainty such a sale could create. Additionally, the client required a lending structure that allowed them to continue chartering the yacht and retain full control throughout the loan term. Any solution needed to balance speed, flexibility, and security, ensuring that the client could act quickly on their real estate opportunity without compromising their lifestyle asset.
Enness moved swiftly to structure a bespoke solution that met these complex requirements. Leveraging our extensive network of private banks and specialist lenders, we identified a partner willing to provide a competitive facility structured as follows:
- Loan Amount: Circa EUR 5 million
- Term: 24 months, interest-only
- Interest Rate: Competitive
- Exit Terms: No exit fee for early repayment
The facility enabled the client to release the necessary capital within a short-time period, a fraction of the time it would have taken to sell the yacht. The absence of an exit fee meant that the client retained the option to sell the yacht during the loan term and repay the facility early without penalty. This offered both peace of mind and financial efficiency, minimising the cost of borrowing while maximising flexibility.
This case highlights the key benefits of yacht equity release for high-net-worth individuals:
- Speed: Immediate access to capital for time-sensitive projects.
- Retention of Ownership: Continued use of the yacht, including chartering opportunities.
- Flexibility: Option to sell the yacht and repay the loan early without penalties.
- Efficiency: Straightforward financing with no pre-existing debt on the yacht.
The outcome was highly successful. With financing in place, the client was able to proceed with their property improvement project without delay, enhancing the overall value of their property portfolio. At the same time, they retained full optionality regarding the yacht, keeping it if desired or selling it when the right offer arose. The competitive interest rate further enhanced the attractiveness of the package, offering a cost-effective and low-risk solution.
This case reflects Enness Global’s deep expertise in luxury asset financing and our ability to deliver bespoke solutions tailored to the unique needs of high-net-worth clients. Yacht-backed lending represents a powerful tool for unlocking liquidity while retaining strategic and lifestyle assets, allowing clients to seize new opportunities without divestment.
For individuals or corporate clients holding significant luxury assets, Enness Global offers a discreet, efficient, and tailored approach to unlocking capital. If you are exploring yacht-backed or other luxury asset financing options and are finding it challenging to secure competitive terms, contact Enness today to discuss how we can help you achieve your financial objectives.
