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Source: Reuters
Millionaires down on their luck now have a place to sell their
mega-yachts, super-cars and family jewels without having to resort
to the pawn shop.
An internet auction site devoted to millionaires officially
launched on Tuesday and is likely to profit from the worst
recession in decades, which has extended its reach to the rich and
famous in the United States, BillionaireXchange said.
The company said it has already played a role in the sale or
exchange of more than $US243 million in assets during a 10-month
test phase, and has noticed a trend of distressed transactions from
US clients.
"I would say that in the United States market that's probably the
majority of the types of the transactions that we're seeing right
now," Quintin Thompson, co-founder and executive partner of
BillionaireXchange, said.
"Because of the current economic conditions in the US we're seeing
a lot of people who need to actually trade out or trade down from
some of their luxury items and facilitate that transaction
somewhere discreetly and privately so that they don't have to deal
with the shame and or embarrassment of downgrade."
The company said its website aims to exploit a market niche between
internet sales sites such as eBay, which are available to the
general public, and auction houses such as Sotheby's and Christie's
for fine art and collectibles.
Given the nature and price of items auction houses come to mind as
potential competitors.
But BillionaireXchange's completely on-line model, is likely to
be a key difference.
The site facilitates sales and trades of everything from arts and
antiques to commercial properties, businesses and foreclosed
homes.
Above all else, it aims for privacy and exclusivity, requiring of
prospective members a minimum of $US2.7 million in verifiable net
worth.
BillionaireXchange will charge sellers a fee of 5% of the sales
and said it would have generated approximately $US11.8 million in
revenue had those fees been charged during the test phase.
The Miami-based company set high financial qualifications to make
sure bidding for the high-priced items would be taken seriously,
according to Thompson.
He said the firm counts among its clients professional athletes and
A-list actors.
Overall, the five-member firm claims more than 26,000 multi-millionaires as well as nearly a dozen billionaires as its members.
