We recently interviewed Robert Pevenstein, an avid sailor as well as President and co-founder of a new fractional yacht company, Phoenix Yacht Management. Pevenstein and his business partner, CEO Tom Patterson, crafted Phoenix Yacht Management out of their combined years of experience in sailing, private aviation, corporate finance and gaming. Here is a summary of the questions and answers covered in our conversation with Pevenstein:

From NetJets to Phoenix

Phoenix Yacht evolved from Tom Patterson’s prior experience as a pilot, aviation and luxury gaming consultant, and pioneer in fractional private jet ownership. He was instrumental in building NetJets, a very successful fractional jet company and current industry leader. Patterson and Pevenstein applied the fractional jet ownership model to luxury yachts and the result is Phoenix Yacht Management – the future NetJets of the sea.

Pevenstein contributes extensive knowledge and business experience as a senior level corporate finance executive and active board trustee, serving on many corporate boards. He was also the Vice President and CFO of UNC Incorporated, which was successfully sold to General Electric Company in 1997.

Progress to Date

Phoenix Yacht has secured an exclusive agreement with Fountaine Pajot shipyard and will be the only fractional yacht program with their brand of yacht. Fountaine Pajot is a 28 year old, French ship building company and the leading producer of cruising catamarans. Phoenix is also working with CNB in Bordeaux, France and Matrix Yachts, a South African shipbuilding company, on future custom-built yachts including a 76ft catamaran (valued at $6 mil.) and a 105ft power cruiser (valued at $11 mil.) At this time Phoenix only owns the one 60 ft Eleuthera catamaran. However, they have orders in place and will schedule delivery on the second and third boats as soon as they sell out the first.

Typical Customer

Pevenstein explains that fractional yacht owners can range from experienced sailors who could captain a 60ft yacht on their own, to people with hardly any sailing experience. Buyers can also vary from someone who could afford the entire yacht (a $1.4 million value) but doesn’t want the hassles of ownership, to someone trying to “stretch their sailing dollars.” The latter wants to access a much nicer yacht than he could afford through single ownership.

Challenges

The challenge facing Phoenix Yacht today is selling out the first yacht, a 60ft Fountaine Pajot Eleuthera, making its debut at the Miami boat show next month. The Eleuthra catamaran is selling for $177,500 per share plus annual maintenance fees. Mr. Pevenstein noted that several buyers are already interested in the boat and that all eight shares should be sold by the end of the Miami show.

The challenge that Pevenstein sees in the future is fulfilling the quality commitment that Phoenix Yacht has made – to provide owners five-star luxury in service and experience.

Click here for more information and details about Phoenix Yacht Management.