Unlocking the world of Passion Assets

Financing typically marches to a conservative beat. However, there are instances where value is derived from unconventional assets, like the rhythm of music and the lyrics of a song. This was exactly the challenge we navigated for two of our clients (one a heavyweight in the rap arena, and the other an R&B giant) aiming to leverage the value of their significant back catalogues.

The asset financing objective was to secure loans against the anticipated value of these music royalties. This required a deep understanding of the multifaceted elements involved, from predicting future royalties to gauging the enduring appeal of the artists in a fast-paced music industry.

Collaborating with institutional investors, we orchestrated the issuance of loan notes backed by these artists' song portfolios. A strategy that transformed the artists’ vibrant discographies into a novel asset class.

This unconventional approach offered the artists swift access to the financial gains embedded in their successful music careers, without compromising their creative output or rights. For wholesale investors, they were introduced to a dynamic, modern asset class, promising returns as enduring as the artists' popularity.

When an UHNWI set their sights on a £2m super car, the road ahead was undoubtedly exciting. They sought a lender, our client, who could match their determination. The contract was signed and a deposit sealed the deal, next steps to the finish line supposedly predictable.

But before the car had been built, its value increased to an impressive £3m!

We knew we needed to respond to this rapidly accelerating market demand. Moving fast, our team, working with the lender and valuers developed a new approach to valuing the intangible future value of the car and structuring a deal. The lender agreed to loan against the strength of the contract and the value of the car once it was built – success! The result of a truly unconventional route through the world of buying high-end cars.

What began with the intrepid ambitions of our UHNWI client, quickly became an unconventional yacht financing journey.

The client, keen on commissioning an explorer type yacht capable of voyaging to the poles while offering a premium experience, suggested an unconventional financing approach – creating a fund vehicle that invited investors to contribute and benefit from both an income from the yacht chartering post-build plus enable them to enjoy time aboard the vessel.

Being familiar with developing innovative financing structures, we jumped on the opportunity given that the project had plenty of complexities - navigating the tax implications of various jurisdictions, addressing the intricacies of investor structures, ensuring regulatory compliance.

The process involved close coordination with shipbuilders, overseas specialist tax advisors, and charter companies across the globe, even co-ordinating the Captain’s due diligence of the hull and shipyard. All while ensuring seamless communication with our client and the group of ultra-high net worth investors involved.

Leveraging our expertise in navigating such uncharted waters we delivered a solution tailored to the unique needs of our client who fulfilled his passion of commissioning a yacht with adventurous specifications.