What role do banks play in superyacht ownership? A UBS expert reveals the intricacies of the financing process.
In the world of superyachts, luxury isn’t just a requirement—it’s a way of life. These extraordinary vessels represent the pinnacle of investment for the world’s wealthiest individuals; floating masterpieces whose every detail is designed to dazzle. Imagine stepping onto a deck lined with teak, where an infinity pool seemingly merges with the horizon. Inside, you might find a screening room, a spa, or even a glass-bottomed lounge that offers a view of the ocean floor. Interiors are created by the world’s top designers, with no expense spared. Each yacht is a reflection of its owner’s personality, from the shade of the hull to the art on the walls.
But these boats exist beyond the realm of wealth symbolism, they are great works of engineering built to explore the furthest reaches of the globe, combining cutting-edge technology with unparalleled comfort. Whether anchored off the Amalfi Coast or cruising through the Galápagos, a superyacht offers its owner the ultimate in privacy and freedom. Yet, behind the glamour lies a story of financial strategy. These vessels, which can cost up to hundreds of millions, are rarely purchased outright. Instead, they are financed through a combination of loans and meticulous planning.
UBS, a leading global wealth manager, finances superyachts—starting at around 30 m in length—for Ultra-High-Net-Worth Individuals as part of their Global Wealth Management services. With seasoned experts in Zurich, Singapore and Hong Kong, UBS offers a wealth of experience in providing tailor-made financing solutions for both current and prospective owners. Beyond these hubs, the UBS team collaborates with UBS entities such as Monaco’s private banking team.
The UBS Aviation & Yacht Finance team—spearheaded by Johan Blitz—leverages an extensive global network to offer a wide range of solutions. Based in Zurich, Blitz has worked with global banks for over 20 years. He established the Aviation Finance department in 2006, growing it into an award-winning roster.
According to UBS, expertise and dedication throughout the entire process are key ingredients to ensure that the acquisition is seamless and tailored to specific requirements. “Clients come to us not just for what we do, but for how we do it,” Blitz says. “They are looking for a partner, someone who can navigate the journey with them. With our vast expertise, based on decades of transactions, we are able to help turn their vision into a reality.”
Here, Blitz delves into the complexities of superyacht financing, explaining the critical aspects and factors at play.
Financing a superyacht sounds like a monumental task. How does the process start?
It’s a unique process, but it all begins with a client’s enquiry followed by understanding their needs and financial situation. Superyachts are complex high-value and depreciating assets, so the financing is tailored to each and every individual.
What kind of financing options are available for superyachts?
The most common option is a secured loan, where the yacht itself serves as collateral. These loans are structured based on the yacht’s value, and the client usually provides a significant down payment, often 35-60 percent of the total cost. For example, if the yacht costs €150 million, the client might finance €75-100 million and pay the rest upfront. Another example is if a client already owns the yacht and is seeking an equity release.
What do lenders consider when approving a loan for a superyacht?
Lenders look at several factors. First, they assess the client’s overall financial profile, including their net worth and recurring liquidity. They also evaluate the yacht’s resale value based on assumed annual depreciation, as it serves as collateral. The yacht’s builder and design can play a role too. Finally, lenders consider the client’s ability to cover the ongoing operational costs, which can be substantial.
Could you elaborate on those operational costs…
Operating a superyacht can cost around 10 percent of its newbuild/ replacement value annually. This includes crew salaries, maintenance, insurance, fuel and docking fees. For a €200 million yacht, that’s roughly €20 million a year. Lenders want to ensure the client has the resources to manage these expenses in addition to repaying the loan.
How long does the financing process typically take?
It all depends on the complexity of the deal, but it can take anywhere from a few weeks to several months. The process involves detailed appraisals, legal reviews, and often a lot of customisation to meet the client’s specific needs—such as financing the construction if the yacht is new. It’s not a one-size-fitsall approach. At UBS, we take the demand for bespoke solutions very seriously to accommodate client needs and visions.
Are there any risks involved for the lender?
Absolutely. One of the biggest risks is depreciation. Unlike most real estate, yachts—in general—lose value over time, so lenders need to carefully assess the yacht’s long-term marketability. Legal and sanctions risk may play a role as well.
Any advice for someone considering financing a superyacht?
Work with experts and involve them early on in the project—both financial advisers, law firms and yacht brokers. This is a highly specialised market and having the right team can make all the difference. Financing a superyacht is about more than just numbers. It’s about creating a structure that aligns with the client’s lifestyle and long-term goals. It’s always fascinating to discuss the world of superyachts. It’s a blend of luxury, engineering and financial strategy that’s truly one of a kind.
UBS is proud to be a co-exhibitor at the 34th anniversary of Monaco Yacht Show 2025. Individuals seeking insights into the world of superyachts are invited to contact their local UBS private banker to arrange a personal meeting with Johan Blitz and his team during the event.
