EnTrustPermal, an affiliate of Legg Mason, is to launch a USD250m direct lending investment trust to capitalise on the shipping industry’s USD80 billion debt requirements.
The Blue Ocean Maritime Income investment trust will target a yield of 7 per cent a year by providing debt finance to high quality shipping companies. The trust will seek to exploit the dislocation between the shipping industry’s significant capital requirements, and the shortfall caused by a significant reduction in the financing provided by banks since 2008.
Svein Engh, Portfolio Manager, Blue Ocean Maritime Income, says: “Shipping is a large and diverse industry, which creates many significant investment opportunities. While we continue to see capital inflow to direct lending vehicles and investment funds in sectors such as real estate or infrastructure, the maritime financing sector is in a different position; values are low, and the competition is limited, resulting in attractive risk-adjusted yield opportunities.”
“The banking dislocation is driving our opportunity and we are stepping into the area where banks used to be very active but are now restricted due to Basel regulations and other factors. As a non-bank lender, we can construct our portfolio in a countercyclical manner in the privately-owned segment of the shipping market. We are completely focused on the industry, with our team of shipping experts having a combined 60 years of experience.”
Roger Harle, Senior Vice President at EnTrustPermal, adds: “We are delighted to announce the proposed IPO of Blue Ocean Maritime Income plc. With Svein’s experience in this sector, along with the support from the investment team, we have the opportunity to target high-quality maritime assets in the private market.”
“We believe this is a unique and compelling investment opportunity, providing investors the chance to access an often-overlooked market, through a highly experienced investment team.”
