EMEA News
Private Equity Firm Expanding Shipping Investment
UK private equity fund Talis Capital says it is expanding its investment in shipping, where it says it can produce yields of above 15 percent for investors.
The company recently acquired a 12,200 deadweight tonne (dwt) cargo vessel that will operate in the Black, Mediterranean, and Azov Sea region under the management of Vienna-based INTRESCO Ltd.
The firm also bought two dry bulk carriers in 2013, and it is raising investor commitments to complete four to six more acquisitions in the first half of 2014.
"This is the third vessel acquisition of 2013, which has been an exciting year for the shipping portfolio," said Talis Capital Director Vasile Foca.
"The existing vessels have been operating ahead of budget and we anticipate the larger tonnage of the latest vessel will serve to meet growing demand from Charterers in our markets."
The firm said it has experience in shipping and has been "actively monitoring" the sector for several years.
"The recent uptick in optimism for charter rates is well recognised by market participants, however we find the vessel supply conditions in our niche even more interesting," said Director Matus Maar.
"The fleet in these specific markets is aging, which combined with record scrapping levels and a limited newbuilding orderbook provides some key attractions to operating modern and fuel efficient vessels."
After traditional banks moved away from the shipping sector following the 2008 financial crash, some analysts say alternative financing institutions, including private equity firms, are beginning to take a more active role in the industry.
