Combining brokerage and financing
The team at Compleo Superyachts discusses the benefits of combining financing and brokerage…
SuperyachtNews speaks with the team from Compleo Superyachts, a new web-based platform that aims to improve the way that clients acquire and finance superyachts, about some of the options available to superyacht buyers.
“We’re changing the traditional silos and demystifying the process to create a friction-free path to superyacht ownership,” states Alan Maslanka, founder & CEO of Compleo SY. “By providing a guiding hand through the entire process, Compleo SY helps seasoned owners and superyacht newcomers alike, and hopes to capture a new generation to the market.”
Alan Maslanka, founder & CEO of Compleo Superyachts
After some 30 years working as a finance and leasing consultant for large luxury assets, such as yachts and aircraft, Maslanka decided that with so many lenders and leasing companies behind him that were willing and able to complete superyacht projects, it was time to take greater control of the purchasing process.
Maslanka’s partner in the project, Albert McIlroy, is Compleo Superyachts’ sales and project director and brings with him 30 years of working in the marine industry and the technical knowledge and know-how that that confers. The combination of financial and technical expertise has been designed to simplify the purchasing process for superyacht clients.
Albert McIlroy, sales and project director at Compleo Superyachts
“When I am dealing with banks such as Société Générale Private Bank (Monaco), BNP Paribas, Credit Suisse etc, all the paperwork, technical information, valuations have to be presented. If we were just doing finance for preconstruction then, of course, we wouldn’t need the technical knowledge because it is between the bank, the designer and the builder,” explains Maslanka. “However, when we are in control of the process then it is necessary to understand all the technical information so as to be able to advise on values, residuals providing a complete portfolio, which is extremely important whether the financing is coming from one of the traditional banks previously mentioned or from a venture capitalist (VC)”.
Maslanka continues that one of the preconceptions that reoccurs time and time again when he discusses his line of work is that people often labour under the misapprehension that UHNWIs, the kind that would be looking to purchase a superyacht, don’t need or want to use financing. The truth, he explains, is rather different.
“By financing, the acquisition is confidential. Secondly, clients can reinvest their money in core business activities for better returns,” says Maslanka. “The strict conditions of financing is that the major banks have been steadfast in their lending, and some require a private banking relationship with the client’s assets under their management control, “AuM”, so our clients sometimes prefer alternatives with flexibility”.
While private banks arguably provide the most competitive rates for superyacht financing, it may simply be that where the buyer is located makes using one of the more established private banks prohibitive. For non-Western clients who may not have any Western assets, it is still incredibly difficult to secure a personal guarantee and collect on it should they default. The jurisdiction that the buyer lives in and the country of registration “Flag” of the yacht is still very much key to the financing process.
“We have clients that use the banks but moving assets from one bank to another is time-consuming. Assets under management are not required with the VCs, they’ll provide financing based on personal and business credit checks. The rate might be slightly higher, but the terms are more flexible. With the normal banks, the repayment terms are typically three to five years, whereas with the VCs, a 10-year loan from the fund is possible and the residual balloon payments can be the same as the banks. The VC may also allow the client a deferred payment or can provide a repayment term based on various factors like seasonal cash flow. The VC lending model, generally speaking, is more flexible,” explains Maslanka.
Maslanka believes that Compleo’s SY model allows superyacht buyers to work with professionals across all areas in one go. “We have a network of superyacht lawyers and insurance brokers; I do the finance and Albert is absolutely one of the best people out there to deal with the technical elements of a superyacht purchase. We feel that Compleo SY is about bringing new players into the market for the first time and to help in regard to the acquisition and the various components of owning and operating a large luxury asset. It is important to have the right people supporting them. Compleo SY provides all options so our clients can make an informed decision.”
While the Compleo SY team is clear that it does not consider itself a competitor to the large established brokerage houses, Compleo SY does believe that sooner or later clients will require brokerage services once they see the strength of the team and the proposition. Key to Compleo’s SY service is the provision of a simple and intuitive platform that allows clients to directly access vessels for purchase, both new build and second hand, and view the various financing options available to them.
Image credit: Dynamiq Yachts GTT165
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