Two experts at UBS, the world’s leading global wealth manager, on how those purchasing their dream yacht can make their capital work harder.
How does one make the pleasure of being aboard a luxurious floating world, with little more to worry about than where to drop anchor for lunch, even more exquisite? The answer: enjoying aquatic life safe in the knowledge that you financed your asset wisely.
While buying a yacht outright may appear the most straightforward option, financing can help owners preserve liquidity and maintain investment flexibility, while still enjoying the asset in a way that aligns with their overall investment strategy and risk tolerance. This raises a number of questions. How does the process work in practice? What does a bank look for in the vessel itself? And how can financing be tailored to the specific needs of the owner?
Alejandro Velez, country head of UBS Monaco, and Johan Blitz, head of aviation & yacht finance at the company, elaborate on how to make yacht financing simple, effective and flexible.
aviation & yacht finance at UBS Monaco.
Why finance a yacht rather than buy it outright?
Johan Blitz: The idea is that clients can use leverage so they don’t tie up too much of their own capital in a single, highvalue asset like a superyacht. By financing the yacht, they can keep more of their capital invested and potentially earning returns over the agreed term, in line with their overall investment strategy and risk profile. Instead of withdrawing, for example, €150 million from their portfolio to pay for the vessel outright, they can use financing and let that capital continue to work for them, provided the expected portfolio returns and their risk appetite justify this approach.
How does UBS approach a yacht-financing request?
Alejandro Velez: The first thing to do with a new client is understand their objectives. This purchase should fit comfortably within the client’s broader wealth strategy. The objective is to preserve liquidity, maintain investment flexibility, structure ownership appropriately, manage risk and ensure the asset supports their long-term goals. The yacht should enhance a client’s lifestyle while allowing their balance sheet to continue working efficiently.
What kind of financing options are available?
JB: All our financing solutions are bespoke. We focus on accommodating each client’s preferences and needs. While we operate within clearly defined policies and risk parameters, our starting point is to listen: what does the client want? A longer or shorter term? A different currency from the one typically used in the asset class—for example, financing a yacht, which is usually priced in euros in Swiss francs to benefit from lower interest rates? We can structure this, but the currency risk does not disappear. It must be borne by someone, and it is our responsibility to ensure clients clearly understand that such solutions may involve additional, carefully managed risks.
Can financing be arranged for a yacht that is still being built?
JB: In principle, we focus on financing delivered yachts. We can support clients who initially acquire a yacht with their own funds and later wish to optimise their liquidity. In such cases, we may arrange refinancing or an equity release against the completed yacht, even some time after delivery, subject to our usual credit and risk assessment.
For projects still under construction, we may consider financing once the vessel is close to delivery and key conditions are met, such as a reputable shipyard, a robust contractual framework and appropriate security. We do not typically provide early‑stage build financing; pre‑delivery financing is available, but it is structured on an equity‑first basis, meaning clients are expected to contribute a substantial portion of the purchase price upfront, with financing stepping in only once a defined equity threshold has been met and the project has reached an advanced stage of construction.
What due diligence does UBS carry out regarding the vessel?
JB: We focus on yachts crafted by renowned, high‑quality shipyards with a proven track record that we know and trust. Just as important is the individual vessel itself: its construction quality, its pedigree and, in the case of pre‑owned yachts, evidence of careful maintenance and, where relevant, high‑quality refits. Ideally, the yacht’s design and outfitting embody a timeless, broadly appealing aesthetic—lighter colour schemes and popular layouts—helping it remain highly desirable on the market for many years to come. Within this framework, a customised yacht still offers ample scope for personal expression, allowing owners to create a truly individual retreat on the water.
What can UBS offer specifically to Monaco residents?
AV: Monaco’s unique position at the heart of the global yachting ecosystem gives direct access to many of the industry’s leading players. Through our longstanding presence and network, we work closely with renowned shipyards, yacht builders, brokers, designers, legal advisers and other specialists involved in every stage of yacht ownership. This enables us to bring together the right connections, whether a client is considering a first acquisition, a new-build project or the expansion of an existing fleet.
Is yacht ownership itself changing?
JB: We are seeing a clear increase in clients looking for more flexible ways to enjoy yachting: through chartering or by investing in a share of a vessel. Much like the shift towards subscription models in other areas of life, many prospective owners are asking themselves whether they really need to own a yacht outright. Owning a yacht involves significant ongoing costs, and for some clients actual usage may be limited to just a few weeks a year. When they take a closer look at the economics, many conclude that chartering when they wish to be on the water can be a more pragmatic way to access the yachting experience. At the same time, for those who value absolute freedom, privacy and the ability to shape every detail, full ownership remains the ultimate expression of the yachting lifestyle.
What, ultimately, should yacht financing achieve?
AV: Yacht ownership is about passion, freedom and creating experiences. The right financing strategy should support those ambitions while preserving financial flexibility and peace of mind. At UBS Monaco, our role is to guide clients through their objectives, combining our wealth management capabilities with the global UBS network to deliver a seamless ownership experience. Wealth management is our craft.
