Yacht Share Network find like minded co-owners to combine to buy a vessel. This is then managed by Yacht Share Network coupled with a professional crew on board. Co-owners then use their yacht in proportion to their share of ownership. It is set up for each arrival with their personal items placed on board (and others’ removed). Just like arriving at  5* hotel suite, all linen, towels and basics are there to provide a turn key yachting experience for each week on board.

Each Syndicate is set up by Yacht Share Network as a SPV limited company, incorporated in the UK, whose sole business purpose is to own and operate the vessel. Each Syndicate Member is a member in two senses of the word; a shareholder in the company, directly pro-rata to their equity stake in the yacht, and as part of a community of like-minded co-owners.

The Syndicate is operated for the benefit of the co-owners, and is managed by Yacht Share Network who are accountable to the co-owners. Yacht Share Network manage the day to day operations and report all activity through the yacht’s app which offers real-time data on every facet of the yacht and its operation. The app’s fair usage algorithm makes sure every co-owner gets the correct proportional access to periods on board commensurate with their equity stake in the yacht.

One co-owner of the syndicate is appointed as the finance manager of the running expenses. He oversees the spend on behalf of the co-owners to ensure that the syndicate is well run and is always getting great value for money.

Yes. We have learned that one size doesn’t fit all. One family may only wish to go yachting for a few weeks a year and another party may be retired and have more time to spend on board. This is easily achieved by making every facet of the syndicate pro-rata to the equity stake held by each co-owner. For example a co-owner with a 12 week share pays triple the maintenance contribution versus a co-owner with a smaller 4 week share in the same yacht. The 12 week shareholder however gets triple the usage on board and the usage algorithm in turn gives him triple selection preferences over the 4 week shareholder so the 12 week shareholder has a higher propensity to peak season weeks on board. In short, every aspect of usage and cost is exactly proportionally allocated in line with each co-owners share size.

Every yacht in our fleet is individualised to the co-owners preferences on a majority vote basis. For example any co-owner can suggest adding a jetski, seabob, flyte board, kayak, paddle board or other addition to the yacht’s inventory of water toys. That suggestion is then put to the vote through the yacht’s app. If the majority of co-owners favour the suggestion, the item is added and charges pro-rata to each co-owner in line with their equity stake.( Their voting % is also in line with their equity).

Yacht Share Network advertise all of the shares in all of the yachts all of the time. The underlying purpose is that there is a waiting list of interested parties ready to buy a share, so a current co-owner can exit more quickly.

Each co-owner has a duty of care as outlined in the syndicate agreement. Should an issue arise on their watch then the responsibility to financially rectify the situation falls upon them. There is insurance in place to cover major issues.

The syndicate agreement which every co-owner signs and abides by covers this in great detail.

1.  If a co-owner is behind on their payment they cannot use their allocated weeks. That week is then placed on the app as available and the remains co-owners can pay the maintenance fund dues to use the week. Typically that is a relatively small sum (circa £3k to £5k per week) which is likely less than 10% of the cost of an equivalent charter rate. Generally, there are a number of co-owners would would happily pay the £3k – £5k sum for an extra week on board so the maintenance account is quickly replenished.
2. If the defaulting co-owner contuse to default there is a simple mechanism where his share is auctioned to a new co-owner after 3 months, and the proceeds are used to repay his dues before returning any residual balance to him.

The algorithm has two fundamental facets:

1. To give every body a week at a time selection in line with their share size.
2. To mix the selection order year on year so that over a 5 year period every co-owner has completely fair access to peak weeks.

Sadly not. Our yachts a generally not coded or licensed for charter, and our co-owners generally don’t wish to have charter guests on board – as they just don’t share the same owner related sense of care and responsibility without an equity stake in the yacht.

However, so long as there is no commercial aspect to the usage, family and friends can be given you week. We have many happy and appreciative circumstances where a family member is welcomed on board without the principle co-owner being present.

Yes. We have many shares held by companies like accountants, solicitors, architectural practices for example, where their different individual partners use the yacht for business and personal use.

In the very unlikely event that an individual co-owner, or a small group of co-owners cannot reach agreement  Yacht Share Network are very experienced in finding a fair, suitable, and equitable way forward. Representing over 300 yachts now, with many years of experience under our belt we have likely dealt with every conceivable issue in the past and found a fair resolution.

However, should we fail to find a satisfactory resolution to an issue, as part of the syndicate agreement we are all party to, we have by default all signed-up the Fractional Association’s Code of Conduct for Yachting as Platinum Members. We all therefore agree to be bound by their mediation services.

www.fractionalassociation.com