Burgess investment a sign of ‘optimism’ – Cecil-Wright

Burgess has 18 offices worldwide including in Aspen, Colorado.

Burgess’ investment from US private equity firm Ancient is a sign of “optimism for growth” in the superyacht industry, according to Chris Cecil-Wright, founder of boutique broker Cecil Wright.

The brokerage and management company, founded by Nigel Burgess in 1975, announced its first capital injection this week in a move described by Ancient as underscoring its “long-term philosophy of building enduring, high-performance businesses”.

Jamal Tuhin, co-partner of law firm Norton Rose Fulbright which acted for Ancient, said the move reflects the “increasing convergence of luxury, lifestyle and private capital”.

Cecil-Wright said: “It’s perfectly normal for a majority shareholder to want to cash out before retirement, particularly where there is no clear succession plan.  As far as Ancient is concerned, I’m encouraged by their optimism for growth potential in our sector and am interested to see how their investment affects all of us.”

I see advantages in staying small, focused and privately owned – Will Christie, Christie Yachts

Ancient was founded by New York-based serial investor Alexander Klabin with a motto to invest in “masterpieces, not many pieces”.

The company, which invests across specialty finance and specialised services,  holds positions in US private aviation management company Solairus Aviation,  Sotheby’s Financial Services and Faherty.

“Burgess’ enduring legacy, global reach and commitment to service align perfectly with Ancient’s mission to invest in category-defining platforms built for the long term,” said Loren Easton, Ancient’s head of Private Investing.

 Burgess CEO Jonathan Beckett, who has been at the helm since 1992, said the partnership offers the “resources, scale and creativity” to enhance its “leadership position” in the industry while retaining its independence and culture. It said its leadership team, including across the brokerage, charter and technical services divisions, will remain unchanged. Burgess operates 18 offices in yachting hubs across the world as well as locations such as Aspen, Colorado.

Norton Rose Fulbright’s Tuhin added: “This was an intricate transaction involving a wide range of disciplines and cross-border collaboration with colleagues across our firm, which demonstrates the strength and breadth of our practice.”

While Burgess has welcomed the capital input, not all businesses crave outside investment.

“I see advantages in staying small, focused and privately owned as this is a fast-moving business where having the ability to make quick decisions and being nimble is a real strength,” says Will Christie, founder of boutique brokerage Christie Yachts.

“If you are growing organically and are consistently profitable, there is no need for external capital.”