What makes Pacific Asian Enterprises such a successful company?
Let’s be clear, we’re not talking about Nordhavn here. The reasons that Nordhavn is such an accomplished brand are different from what makes PAE, the manufacturer behind Nordhavns, a success story. There’s no doubt that the individual successes of both entities are influenced by the other, but without the grassroots vision, the heart and soul, the ingenuity and blind faith, the dedication and stick-to-itiveness of PAE’s three founding and (currently guiding) fathers, there still might be Nordhavn – but not the Nordhavn as we know it today.
Many have heard of PAE’s origin story, three young dudes from California in the early 1970s with a passion for sailing who started a yacht brokerage company, talked their way into representing a few boat brands, established a line of world-class cruising sailboats, and then convinced a factory to build their ingenious idea of a passagemaking motorboat. Imagine the 20-somethings of today – minus the internet, minus the bro connections – hustling and gambling on themselves to success. They weren’t business savvy and barely knew what it took to run a company. But they had street smarts, enthusiasm and complete belief in what they were doing – and they had fun while they were doing it. They hired their friends and family to join them in their quest. Ultimately it led to what is modern day Pacific Asian Enterprises: a group with familial ties – if not always by blood – whose combined knowledge and experience and camaraderie rivals most any company that exists today.
Some of the people who joined Dan Streech, Jim Leishman, and their friend Joe Meglen (who retired from the company in 2004 and passed in 2021), in those earliest Nordhavn days are still at the company. They were the ones to go on the first Nordhavn sea trials and witness the proven concept of a power-driven production long-range yacht. What followed were countless deliveries, company-sponsored excursions and brand rendezvous giving practically every member of the company time spent on a Nordhavn, from the project managers, sales staff and commissioning techs who went on the Nordhavn Atlantic Rally and ATW trips, to the administrative personnel who jumped aboard a company Nordhavn 40 to Alaska. “It’s important that our staff as a whole can identify with the mindset of us on the manufacturing side as well as the mindset of our customers,” said PAE President Dan Streech on enforcing a strong company culture. “One of the things we are most proud of here is our rich history and it is imperative to keep it alive as we prepare for generational succession.” In other words, it’s vital to keep Nordhavn the same as it ever was.
(SEE SIDEBAR: THE LOST NORDHAVN VIDEO ARCHIVES)
A recent study by Superyachttimes into the ownership of the major Dutch yacht builders found that many have been taken over by global investors, family offices and luxury conglomerates who swooped in to rescue ones facing insolvency. Some of the biggest names in Dutch ship building are owned by the likes of a U.S. video game mogul, a Brazilian private investment group, plus some whose majority shareholders are listed as “unknown.” Even in the smaller game of trawler yachts exists familiar brands that have undergone multiple ownership changes, contract out naval architects and employ staffs who have no longevity or historical association with the logo on the door. Sure, it allows the door to stay open, but at what cost to cultural harmony and design consistency?
THE LOST NORDHAVN VIDEO ARCHIVES
Back in the early 1990s, the internet was not being widely used and there were no smart phones able to take videos at a moment’s notice and certainly no yachting influencers. Nordhavn was just making a name for itself, and the ability to get across the capabilities and brand lifestyle to a world-wide audience was limited to brochures and boat shows. Still, these could never convey the essence of being aboard a Nordhavn so PAE vice president Jim Leishman bought a camcorder and filmed every sea trial, delivery and launch he could – which were many because at the time, Leishman, Dan Streech and their third partner, Joe Meglen, along with Jim’s brother Jeff, the company’s naval architect, were still flourishing, and so they had their hands in all aspects of PAE: sales, commissioning, payroll, design, and deliveries. This 360-degree approach was one taken by necessity but it would set the tone for the future culture of the company.
There have assuredly been lean times at Nordhavn HQ over the years and even PAE’s directors briefly entertained the calls of private equity (PE) firms in particularly down periods (think the 2008 financial crisis). But Streech and Leishman knew any sort of takeover would destroy the company ethos. “It would have ended up in laying off half the company. It would have been a no-go on owners events,” Streech says. “It would have meant ripping the soul out of the Nordhavn intangibles.” Instead of the quick financial fix, they went with their hearts instead of their heads, tightened their belts and made it work – something they have done time and time again throughout their history.
“With the talents, smarts and tolerance for risk and pain that we have poured into PAE, we could have redirected that elsewhere and made huge money,” Streech surmises. “But, we didn’t. And we have ended up rich in a different way.”
It’s not to say that PE-owned yacht builders do not or cannot find success with their circumstances, but at PAE it is almost impossible to go a day or two without applying a moment from 20 or 30 years ago to a current situation. A glimpse down the 50-employee roster of PAE staff and sales partners reveals 24 folks who have been with the company two decades or more; another eight who will reach that milestone within two years. “All this experience is invaluable when it comes to creating and perfecting our designs,” says PAE’s vice president Jim Leishman. “It’s invaluable when it comes to trouble shooting problems or having a solution to a buyer’s needs.”
In the sport of boat buying, it’s important to research the track record of achievement of different brands. But a buyer is not doing their due diligence if they don’t stop to consider the company behind the brand. Often the apple doesn’t fall far from the tree. And sometimes that’s a good thing.
This Post Has 6 Comments
CARRY ON GENTLEMAN !!!
Warren Player. DREAMER
TALLY HO LADS !!!
I’ve been a PAE fan and Nordhavn Dreamer since 1999. Beyond the seaworthiness and overall qualities Nordhavn’s possess, it has always been the “family” which PAE established that continues to attract Owners and Dreamers. While the open seas and oceans can appear quite desolate and lonely, with Nordhavn and PAE, the family will always be right there, accompanying and supporting you. I’m not exactly “family”, but will continue to dream until I am a “real” member of the family,
Well done Dan & co. I wasn’t amongst those first Cathay Pacific Airways pilots to have purchased a Nordhavn when the company very much depended on them. However, I did have the pleasure of flying with a few of them in my 30+ year career as a CPA pilot. Our eight year ownership of 47-56 was a great joy. Best wishes, Martin and Inge Baggaley.
Loved my time dealing with PAE in the 90 s .
With the frenzied buying of the classic Nordhavn 46 amongst Cathay Pacific Airways in Hong Kong pilots and engineers.
David Wales and myself both ordered and formed a company called Nordhavn Orient.
And succesfully sold quite a few Nordhavn in Hong Kong
In those days I was an airline Captain on the Boeing 747 for Cathay and frequented the Los Angeles route which in those days we had good layover times in LA, which enabled me to frequently drive down to Dana Point headquarters becoming friends with Jim and Jeff Leishman , Dant stretch and Joe Meglan.. One of those 46s belonging to Capt Andy Coverdale is still going strong ,35 years later in the marina I am based at in Phuket Thailand and another belonging to Capt Trevor Jones in Hong Kong still going strong.
I had my 46 and was my home for 15 odd years and did many South China Sea crossings from Hong Kong to the Philippines and then Hong Kong to Singapore and up to Phuket Thailand where she was my home here. I eventually sold her to an american who sailed it to europe and did the canals and eventually across the atlantic to Florida .
Wonderful boats !!! I eventually retired from flying in 2015 and now own and run 5 power catamarans ( Leopards) for my charter company called Tiger Marine Charter in Phuket Thailand .and lovingly follow the Nordhavn progress , Best wishes to you all in Dana point and if any of you are out in this neck of the woods i got beer in the fridge with your name on it .
Richard Hayes
Hi Richard and THANK YOU for your kind words. Ohhhhhhhh….. the “Cathay Boys”… those were the fun heady days of the Nordhavn story. You and David and Andy and Trevor and the others truly saved PAE at a difficult time for us. Until you picked up that Yachting magazine while on a transpacific flight and saw our little N46 ad, we were only selling to the US market. The “luxury tax” that was put in place in 1991 killed the US market for us. Just in time, the Cathay Boys stepped forward and gave us (I think) about 10 orders. You and the boys were bigger than life… something out of a Michener novel. You were wild and crazy and fun… until it came time to fly. Then it was all business. You were superb pilots and you were 100% serious and I know that you took great pride in your skills and your safety record. I remember when you got your brand new shiny 747 400. OMG you LOVED that plane… or “AEROplane” as Trevor would say… And the hundreds of landings that you accomplished at the old Kai Tak airport in Hong Kong… sometimes side slipping that 400,000 lb beast into a silky smooth landing. Thank you Richard for the memories… we SO appreciate all that you did for PAE/Nordhavn.