By combining strategies originally created for problem banking assets with LBO / private equity, tax and other financial strategies, without any traditional charter, YES expects to generate superior risk adjusted returns - safe, secure, and predictable five (5) year IRRs averaging between 20% and 40% but with reasonable assurances that much greater IRRs should be relatively common.

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Without divulging proprietary and confidential details, competitive advantages, or trade secrets as to how yields are achieved, consider four (4) vastly differing base case scenarios for five (5) year IRRs:

• A $10,000,000 yacht purchase by an owner with a combined tax burden of 47% producing an IRR of 71%

• A $5,000,000 yacht purchase by a foreign owner with no US or Canadian tax producing an IRR of 20%.

• .A $1,000,000 yacht purchase by an owner with a combined tax burden of 28% producing an IRR of 36%,

• A $300,000 partial interest purchased by an owner with a tax burden of 18% producing an IRR of 29%.

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These yields are achieved with NO charter or any other yacht related income, NO charter tax benefits, but with annual average operating expenses averaging 10% of the yacht’s value.  Obviously, each owner's interest is uniquely structured to the objectives of each client / owner / partner and include other confidential and propriety strategies we can’t prudently divulge herein. 

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Nevertheless, expected yields from future operations should greatly exceed the base case without necessarily including any traditional charter income. To charter or not, or to what extent is always an option.  Yields may be further enhanced if a partner currently owns a yacht of which they would like to profitably dispose.