How the Ultra-Rich Actually Finance Their Superyachts
Let’s be real—superyachts aren’t just boats. They’re floating mansions, status symbols, and for some, serious business investments. But here’s the thing most people don’t see: the crazy financial gymnastics behind these purchases. I sat down (well, metaphorically) with Lisa Verbit, who’s been financing these beasts for 35 years, to get the inside scoop. And man, it’s not as simple as writing a check.
Yacht Financing Then vs. Now
The 80s Were Simpler Times
Back when Verbit started? Straightforward bank loans. Today? It’s like comparing a bicycle to a spaceship. Private banks now create custom loan packages—think of it like a bespoke suit, but for million-dollar toys. And the clients? Oh, that’s changed too. “Used to be all American and European old money,” she tells me. “Now? Tech billionaires who’d rather lease, Middle Eastern royalty, even Chinese entrepreneurs who see yachts as movable assets.” Globalization, huh?
Who’s Buying These Things Anyway?
Three main groups: billionaires (obviously), corporations playing the tax game, and charter companies treating yachts like rental properties. Location-wise, Monaco’s still king, but don’t sleep on new money from Mumbai or Shanghai. “At the end of the day,” Verbit says, “it’s about showing off without looking like you’re trying too hard.” Classic rich people logic.
The Nuts and Bolts of Yacht Loans
Not Your Average Car Loan
First off—these loans use the yacht itself as collateral. Rates usually follow LIBOR or SOFR, terms run 5-15 years, and here’s the kicker: the second your yacht leaves the shipyard, its value tanks by 20%. That’s why lenders are paranoid about appraisals. “We’ve seen owners try to inflate values with gold-plated faucets,” Verbit laughs. “Doesn’t work that way.”
Why Banks Get Nervous
Remember 2008? Yeah, yacht lenders remember too. When markets crash, these loans freeze faster than a Monaco winter. Add in anti-money laundering checks and flag-state regulations (each country has different rules), and it’s a paperwork nightmare. “But rich folks?” Verbit shrugs. “They always find loopholes.”
The Real Costs They Don’t Tell You About
Buying the Yacht Is the Cheap Part
No joke—maintenance runs about 10% of the yacht’s value yearly. Dock fees in Saint-Tropez? Could buy a house elsewhere. Crew salaries? Think $10k/month for a good chef. And insurance? “Half a million annually for big yachts,” Verbit says. “Engine blows? Congrats, you just bought a Ferrari. A few of them.”
How Smart Owners Save Millions
Two words: tax havens. Malta, Cayman Islands—they’re basically yacht owner Disneyland. Charter your yacht when you’re not using it, and you can cover 30-50% of costs. “Tricky part,” Verbit notes, “is balancing making money with not having strangers spill champagne on your custom Italian leather.”
Mythbusting: Superyacht Life
Not Exactly “Below Deck”
TV makes it look all champagne and bikinis. Reality? More like a floating corporate retreat. Crews work insane hours, owners conduct business via satellite, and the social hierarchy is stricter than a royal court. “Captain’s technically in charge,” Verbit explains, “but if the owner wants pancakes at 3 AM? You’re making pancakes.”
Crew Life: Glamorous or Grueling?
Good money, sure—top chefs can pull $120k a year. But you’re living at work, dealing with entitled guests, and seasickness doesn’t care how nice the yacht is. “Seen crew quit mid-voyage,” Verbit admits. “One guy jumped ship in Barbados and opened a taco stand. Honestly? Probably happier.”
Where This Industry’s Heading
Green Yachts and Timeshares
Hybrid engines, solar panels—eco-yachts are having a moment. Fractional ownership’s growing too (think timeshare, but with helipads). “Tech’s changing everything,” Verbit says. “Blockchain for ownership records, AI predicting engine failures before they happen. Still won’t prevent that one guest from ruining the teak deck with high heels though.”
Lisa’s Crystal Ball
Her predictions? More Asian buyers, fewer small lenders (consolidation’s coming), and someone’s gonna try crypto financing eventually. Her advice? “Unless you’ve got FU money and a high pain tolerance? Maybe start with a nice sailboat first.”
The Bottom Line
After 35 years in the game, Verbit’s seen it all—the crashes, the scams, the pure absurdity of it. What’s clear? Owning a superyacht isn’t about having money. It’s about knowing how to move it, hide it, and multiply it. For the rest of us? Well, there’s always that taco stand in Barbados.
Source: Livemint – Industry