High-ranking capital in dynamic shipping markets

International shipping is one of the most attractive markets for investors as it has been driven by the strong growth in international trade in the wake of global economic expansion. This is also reflected in dynamic growth in the availability of transport capacity. Today, the global fleet of container ships, bulkers and tankers has an aggregate value of over USD 500 billion, with this figure set to grow by a further USD 300 billion or so between now and 2010.

The driving force behind this trend are German shipping companies. They are successful market players and with their strategic foresight and skilled fleet structuring strategies, are continuing to reinforce their position in the face of international competition.  Nonetheless, financing this expansion ties up a considerable part of their equity and thus limits their financial flexibility unnecessarily.  MARITIM EQUITY offers these shipping companies an attractive alternative source of finance when it comes to structuring ship investments. The equity capital fund placed by MARITIM EQUITY as the co-investor collects to 70 percent of the equity required to buy the ship. The shipping company remains co-owner of the ship and holds an appropriate part of the equity, while enjoying greater flexibility in investing its own equity.

MARITIM EQUITY invests in a broad portfolio of new constructions and interesting second-hand tonnage. In addition, it can invest in attractive private placements which are normally only available to institutional investors on account of their high minimum subscription amounts, as well as solidly calculated conventional ship funds.

The main advantages for investors are the broad risk diversification of the portfolio and the largely higher ranking of flowback payments over the shipping company’s equity.