Frank Grzeszczak Jr thinks the superyacht boom can continue
Frank Grzeszczak Jr has a busy month ahead of him. Vice President of FGI Yacht Group, a specialist yachting broker founded three years ago, he’s heading for Asia and then Europe. The Hong Kong, Cannes and Monaco boat shows are three of the biggest events of the year for the superyacht industry.
Movers and shakers in the business have high hopes for the next few weeks. A boom in superyacht sales during the Covid-19 crisis – when the wealthy took to the seas for privacy and safety – has slowed a little, but sales remain well ahead of pre-pandemic times.
Growing affluence amongst high-net-worths and fascination with high-end yachts in the media and on social media is driving demand, says Grzeszczak. “We’re also seeing customers getting younger as we see this huge transfer of wealth from one generation to the next.”
Independent analysis underlines the point. Forecasts from Next Move Strategy Consulting suggest the global luxury yacht market will more than double in size over the decade to 2030. Sales of $6.6 billion in 2019 are set to reach $14.6 billion by 2030, it suggests. “These pleasure vehicles are loaded with luxurious amenities, lavish swimming pools, as well as a variety of gaming, dining, entertainment and leisure options,” the analyst adds.
That’s where FGI, co-founded by Grzeszczak’s father in 2020 with partner and COO Altea Llakmani, comes in. Grzeszczak’s job is to match buyers and sellers of superyachts. Some engagements see him work for buyers – either to manage a new build with a specialist shipyard or to find the perfect second-hand boat. In other cases, he works as an agent for sellers looking to offload their yachts.
Think of $20 million or so as the entry point in this market, he explains. “There are plenty of customers with that kind of budget available – and significantly more.” The largest boats, typically coming in at 70 metres or more, often go for in excess of €100 million.
For customers with a little less to spend – or those who aren’t ready to commit to their own boat – FGI also runs a chartering business. Customers get to hire a yacht for a set period, rather than buying outright; it’s still expensive, but not relative to actually acquiring your own superyacht.
FGI itself has grown quickly since its launch, partly because of the boom in demand for superyachts but also because of Grzeszczak’s experience and contacts in the sector. Growing up in South Florida, he knew he wanted to work in the industry from a young age and spent 15 years working for another broker before joining his father’s newly-launhed business two years ago.
The company says it has now arranged transactions worth just over $1 billion, a significant milestone, though Grzeszczak is tight-lipped about his customers’ identities, citing their desire for privacy. All he will say is that his buyers are a diverse bunch, ranging from technology entrepreneurs, athletes and actors to blue-chip company executives and wealthy families.
“This is an industry with a glamorous and sexy reputation but many of our clients have made their money in businesses that don’t fit that image at all,” he says. What unites the clients, however, is their high expectations. “You’ve got about 30 seconds on the phone with them to prove you know what you’re talking about,” he says.
In practice, every client wants something different. Some buyers are competitive about size – they want a bigger boat than their rivals – but others are more discerning. “They’re often looking at something they can use for business entertaining,” says Grzeszczak. “In some cases, they’re looking for a boat they can rent out to charter clients when they’re not using it.”
The other area of focus is sustainability. Superyachts have faced the ire of environmental campaigners who suggest they can produce 1,500 times more carbon emissions than a typical family car. But Grzeszczak says shipbuilders are responding to increasing client demand by cleaning up their act. “We’re already seeing widespread use of battery technology in new builds,” he says. “The next 10 years is going to see a dramatic shift in how these boats are constructed and used.”
In the meantime, Grzeszczak hopes to keep building his own business. FGI currently has offices in Fort Lauderdale and East Hampton in the US, as well as in Mexico City, but is due to open a new site in Monaco in the coming weeks.
It’s an unusual start-up story, but the business does provide Grzeszczak with a constant reminder of his own long-term ambitions – to circumnavigate the globe with his family, by superyacht, naturally.
