Challenge

Seth could afford NetJets. That is not why he left.

For years he had committed $3.6M into a NetJets share alongside a $41,520 monthly management fee — a structure designed for consistent, high utilization. In practice, usage varied. In years where he didn’t fully utilize his 100 hours, the economics deteriorated quickly — with effective costs exceeding $22,000 per occupied hour once fixed fees and depreciation were accounted for.

At the same time, the capital backing his aviation access sat outside his portfolio — tied up in a depreciating asset with no return profile.

Compounding this, Seth had recently received carried interest distributions from his fund, concentrated in a financial technology position that had appreciated significantly. Re-upping with NetJets would have required liquidating ~$6M of stock to fund a $3.6M share, triggering a meaningful tax event and reducing the capital base.

The structure created a clear misalignment: high fixed costs, underutilization risk, and capital inefficiency all disconnected from his broader investment strategy.

Solution

Seth restructured both his aviation access and the capital behind it — replacing a fixed-cost ownership model with a flexible, investment-aligned approach through Craft.

1. Exit NetJets and reset the cost base

Seth exited his NetJets position, taking a modest hit on depreciation recapture. A small price to eliminate the $41K/month management burden and avoid a $3.6M renewal on the horizon. This step removed the fixed-cost drag and reset his aviation strategy from the ground up.

2. Transition appreciated equity, not cash

Working alongside his advisor, Seth avoided selling into a highly appreciated position. Instead, he contributed ~$3M of stock directly into Craft via a Section 721 exchange.

The allocation represented roughly a 20% trim in a concentrated fintech position — one he still believed in, but which had grown outsized in his portfolio. Through Craft, that capital transitioned into a diversified S&P 500 exposure — a position he and his advisor were comfortable holding well beyond the 7-year term while preserving the full pre-tax value and deferring capital gains.

3. Begin flying with aligned economics

Seth began flying immediately within the program, maintaining a fully personalized, ownership-level experience. His first trip Aspen to Teterboro delivered exactly what he expected: seamless service, Challenger 350 aircraft, and Starlink connectivity throughout.

But the real shift was economic. His effective hourly cost dropped by ~60%, and for the first time, the capital funding his aviation access was continuing to compound while he was in the air, not depreciating on the ground.

“Our analysis showed that compared to traditional aviation programs, Craft’s tax structure and capital efficiency can create eight-figure portfolio impacts in under a decade”

— Chief Investment Officer - Multi Family Office

Impact

In his first six months with Craft, Seth flew 50 hours for ~$400K.

In the prior six months under NetJets, he had spent nearly $1M with significantly lower utilization.

Over the course of his 7-year term with Craft, Seth expects a total net benefit of approximately $7.5M versus renewing his NetJets program over the same period.

Beyond the direct savings, the structure fundamentally changed the role aviation plays in his balance sheet, shifting it from a fixed, depreciating expense to a flexible, capital-efficient layer within a compounding portfolio.


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