Luxury assets are celebrated for their beauty and rarity, but they are also characterized by their illiquidity. Savvy management, therefore, requires a strategic approach to this illiquidity, ensuring these high-value holdings enhance your financial life without creating undesirable constraints or forcing untimely sales at discounted prices.
We begin with a clear-eyed analysis of your liquidity needs. We model your cash flow requirements, investment horizons, and contingency plans to determine an appropriate allocation to illiquid tangible assets. This ensures your collection is built on a stable financial foundation and is not a source of financial stress.
Strategically, we help position these assets within your broader planning. For instance, a piece of fine art can be leveraged as collateral for a portfolio loan, providing liquidity without requiring a sale. A yacht held in a corporate structure can generate charter income to offset carrying costs. We explore these strategic options to increase the financial utility of your holdings.
We also develop contingency plans for liquidity events. This includes maintaining updated professional valuations, understanding the optimal sales channels for each asset, and having relationships with key dealers and auction houses. This preparation ensures that if you do decide to sell, you can do so efficiently and at a price that reflects the asset's true worth, turning strategic illiquidity into strategic optionality.