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From having a fear of flying to offering a unique high-net-worth investor jet club, Matthew Lawrence of Prospect Capital Group explains to Emily Moore how one flying lesson started it all
WHEN Matthew Lawrence’s wife gave her aerophobic husband a trial flying lesson, he could have been forgiven for wondering quite what her motive was.
But, as the chairman of Prospect Capital Group reflects, that gift not only helped him to overcome his fear but gave birth to a new passion which has now also inspired an innovative new arm of the business.
“My interest in aviation began with that present nearly 30 years ago,” he explained. “Up until that point, although I had always done a lot of business travel, I had always been a bit scared of flying.
“The trial lesson, which was delivered by a very knowledgeable and professional instructor, dispelled a lot of the myths which had fuelled my fear and gave me a greater understanding of how planes operate and their many safety features.”
Indeed, so reassured was Matthew by the experience that he went on to obtain his Private Pilot Licence, a qualification which, despite the six exams and 40 hours’ flying time which it demands, he completed within four months.
“After that, I learnt to fly a twin-engine aircraft, obtained my instrument rating and bought first a small single-engine piston aircraft before buying a multi-engine aircraft, taking a break from my business interests and spending a year flying around Europe,” he said.
It was after those 12 months of freedom that Matthew started thinking about buying a turbine aircraft, at which point he was introduced to Cessna, who recommended the Citation Jet CJ1 model.
“I thought it might have been too advanced for me but, 30 minutes after landing from a trial flight, I ordered one,” he smiled. That model, he explained, was the predecessor of the Citation M2 GEN3, the aircraft in which Prospect Capital Group has now invested as it launches its Jet Club, designed to offer an additional service to its high-net-worth investors.
“As a boutique property and finance group, we offer high-net-worth investors the opportunity to make superior returns through our innovative approach to real estate lending, in which each co-funder’s position is significantly derisked as each loan is supported by our own capital,” Matthew explained.
“Our proposition is also appealing to co-funders, because all our loans are secured by way of a first legal charge over one or more high-calibre assets, such as prime residential property in London and Jersey, which enables us to provide strong and secure returns.”
Over the years, as the firm developed strong relationships with its investors, Matthew said that many clients became aware of his love of aviation, with some even accompanying him on various flights.
And it was comments along the lines of “I wish I had the use of a private aircraft” made during such trips that triggered the idea of the Prospect Capital Jet Club.
“This is a unique offer, which gives our existing and potential investors the opportunity to have that experience but at a commercially viable rate,” Matthew said. “Prospect Capital covers all the fixed costs, including the hangarage and the insurance, and we organise the crew and manage the plane’s schedule.
“Unlike chartering a plane or taking part in a fractional ownership scheme, where it might cost around £8,000 an hour to use the aircraft, the cost for using our Cessna Citation Jet is about £1,400 an hour. Because we want our clients to derive as many benefits as possible from the Jet Club, there is no minimum flying time and as we limit the membership to five people per aircraft, it is easy for people to book the plane for the date and time of their choice.”
Another advantage of the scheme – which Matthew says one investor and fellow aircraft owner described as “unique and fascinating, the likes of which I’ve never seen before” – is that because the programme uses a private operator’s licence, the aircraft is able to access an extensive range of airports across the UK and Europe.
“We have more freedom than charter and fractional ownership operators, which enables us to take clients to airports which are closer to their final destination,” said Matthew.
“The Citation M2 GEN3 also stood out from other aircraft because it is fast, comfortable and has the runway performance to operate in and out of the vast majority of European airports, making it ideal for both leisure and business travel.
“If, for example, you have a meeting in Glasgow, you can get from Jersey to the Scottish city in an hour, have your meeting and return an hour or two after landing if that’s what you want to do. Similarly, if you are heading to Marbella for a holiday, you can leave your home in Jersey and be in the Spanish sunshine less than three hours later.”
Our operator’s certificate enables us to have up to four planes, so it is very likely, given the number of expressions of interest which we have received, that we will be investing in further jets in the near future
Facilitating the booking process, adds Matthew, is the Prospect Capital Jet Club app, where clients can enter their date and time of travel, destination, number of passengers and any extra information, such as number of cases and even whether they would like to take a pet with them.
“While we encourage people to give us as much notice as possible, so that we can add their booking to the schedule and organise the logistics, we ask for a minimum of 24 hours’ notice,” added Matthew.
“The app also features an ‘empty-leg’ section, so if you are planning a trip somewhere and see that the plane is already scheduled to be there at a certain time, you can co-ordinate your dates with those of the aircraft, which offers even greater savings.”
While the plane will be based in Jersey, Matthew adds that the short flying time – four minutes – between the Island and Guernsey also makes it ideal for Guernsey residents.
Interest in the Prospect Capital Jet Club is, he adds, already building.
“The nature of the club means that the opportunity to join is only available to a limited number of people,” he said. “We have already achieved commitment for the first plane, which we expect to start operating in the first quarter of next year.
“Our operator’s certificate enables us to have up to four planes, so it is very likely, given the number of expressions of interest which we have received, that we will be investing in further jets in the near future.”
This, he says, not only provides a valuable service to clients but gives Prospect Capital Group a unique position in the market.
“We are a boutique firm, but our knowledge of private aviation gives us this competitive edge and enables us to offer a service which would be beyond most property-backed lending and development businesses,” he added. “This is a very exciting way both of differentiating ourselves in the market and providing to our investors a solution to a problem which they haven’t been able to solve elsewhere.”
