Prudent Asset Management has launched a private equity shipping fund, the First Maritime Fund, which will invest in the small- to medium-size sector of the dry bulk shipping market.
Prudent was advised by Carne Global Financial Services on establishing the optimal structure for the fund.
The fund’s investment focus is on the acquisition and operation of small to medium-sized (25,000 to 65,000 dry weight tonnage) – vessels to ensure greatest possible versatility for cargo transported and accessibility of harbours, making this the most dynamic sub-sector of the industry. Danad Shipping Compnay Ltd will be the exclusive ship manager for the fund’s vessels.
The managers of Prudent Asset Management are Achillefs-Sotirios Vardakis, Nikolaos Kouros and Konstantinos Choupas, all highly experienced figures from the shipping industry. Between them they bring over thirty years of experience to the First Maritime Fund. Vardakis established Danad in 1980. Operating out of Piraeus, the world’s largest shipping centre, Danad provides ship management, broking and other shipping services of the highest standards.
The First Maritime Fund offers investment in a dynamic sector with high-growth potential through a structure that combines tax-efficiency with transparent management procedures, without requiring the commitment of large amounts of capital. Investors gain exposure to the investment by purchasing ordinary shares in the fund.
Risk management is achieved through the careful selection of high quality assets and a balanced chartering strategy to manage cash flows and future growth resulting in the targeted medium risk profile.
Dividends will be distributed annually with a minimum dividend of 60% of realized net revenue profit from the operation of the Company’s vessels. The fund is incorporated with limited liability in the Cayman Islands as a closed-ended investment company and the expected launch size is in the region of USD150 million.
“The fund’s launch has been timed to ensure the best possible entry point into the market to maximise return on investment," says Nikolaos Kourous, Director of Prudent Asset Management. "It launches at a time of promising opportunity for investment in the shipping market as the charter market returns to health since the global economic slowdown, when both charter earnings and asset values were significantly depressed.”
