Maritim Equity I: Equity of EUR 100 million for shipping
29.10.2007 | Hamburg
MARITIM EQUITY Beteiligungsgesellschaft mbH & Co. KG (Maritim Equity) from Hamburg is offering an entirely new type of ship fund for subscription. Known as Maritim Equity I, this fund invests in several ships of different sizes, segments, charterers and shipping companies. However, it is its underlying design which sets it apart from other investment models: Instead of buying and operating the ship itself, Maritim Equity I provides financially strong shipping companies with capital so that they can extend their own fleets. In this way, the shipping company remains co-owner of the ships acquired, instead of merely providing shipping services. The fund subscribers, in turn, acquire shares in several ships of different sizes and segments as co-investors and partners.
Maritim Equity: Equity for financially strong shipping companies
The fund design provides a solution in response to the sharp rise in German shipping companies’ equity requirements. Driven by double-digit growth in global shipping, they are currently extending their fleets at substantial rates. An estimated 25 percent of global orders for ships valued at around USD 300 billion for delivery by the end of 2011 originated in Germany. Given an order volume of around USD 75 billion, this translates into equity requirements of around USD 20 - 25 billion over the next four years.
At the moment, equity of around USD 3 - 4 billion per year is being raised via conventional ship fund entities. “For many shipping companies, it has become quite simply too complicated, long-winded or expensive to finance their fleet growth by means of conventional closed-end funds,” explains Dr. Werner Großekämper, managing shareholder of Maritim Equity.
The new fund structure now offers shipping companies an attractive alternative. “With Maritim Equity I, shipping companies are able to reduce their capital deployment and render it more flexible. This is because the fund operates as a partner to the shipping companies, investing directly in the construction or purchase of ships,” explains Großekämper. This structure offers a double advantage for shipping companies as both the costs and the complexity of this option are well below those of conventional closed-end funds.
Sitting in one and the same boat with the shipping company as a co-investor
For private investors, however, it also offers an appealing vehicle as Maritim Equity I gives them access to new markets and attractive assets normally not available via closed-end funds. As investors and shipping companies literally sit in one and the same boat, they both have an incentive to ensure the economic success of the individual ships. “We effectively operate like an institutional investor and thus contribute more substantial sums for the individual ships. At the same time, we are a large fund which is able to acquire a whole portfolio of individual funds and thus spread the risk across several ships,” explains Großekämper.
Higher ranking for equity repayments
Depending on requirements, Maritim Equity I contributes between 25 and 75 percent of the equity required to finance the ship. Target investments are required to be able to generate a net return after costs of around 6 - 8 percent per year,” says Großekämper. For this purpose, the capital contributed by the investors is structured in such a way that it has a higher ranking that the equity provided by the ship company in question. At the same time, with an investment ratio of around 90 percent of the subscribed equity, the fund is characterized by a very favorable cost structure.
Asset allocation: Broad diversification in the interests of greater security
The investment focuses on medium to large container ships as well as interesting bulkers and tankers. As all the target investments within the fund are to be subject to tonnage tax, the distributions paid out to the Maritim Equity I investors are almost completely tax-free. Maritim Equity I has a planned maximum equity volume of EUR 100 million over a term of 12 to 15 years. The minimum subscription amount for Maritim Equity I is EUR 20,000 plus a 5 percent premium.
Maritim Equity I at a glance
| Fund volume | 100.000.000 EUR |
| Minimum subscription amount | 20.000 Euro |
| Expected average net return | 6 - 8 % p.a. |
| Planned term | 12 - 15 years |
| Payment schedule and installments | 50% upon subscription plus 5% premium 50% on October 31, 2008 |
About Maritim Equity
Maritim Equity is a fund issuer which was established in 2007 by Salomon & Partner for innovative investment products for the shipping sector. The shareholders and managing directors of the Hamburg-based company have more than 30 years of experience in shipping and in engineering lucrative ship funds.
www.maritim-equity.com
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Press information: Susanne Wiesemann
redRobin. Strategic Public Relations GmbH,
Altonaer Poststraße 13a,
22767 Hamburg
Tel: 040-692 123-20,
Fax: 040-692 123-11,
E-Mail: wiesemann@red-robin.de
For more information on the company: Stefanie Martens
Maritim Equity Beteiligungsgesellschaft mbH & Co. KG,
Zippelhaus 2,
20457 Hamburg
Tel: 040-303 729-325,
Fax: 040-303 729-99, E-Mail: s.martens@maritim-equity.de