The Hamburg-based shipping group MPC Capital aims to enhance investing in second-hand ships in various segments. Therefore, a new platform has been set up with an investor from Oslo for this purpose and capital has already been raised.
MPC Capital – already active in the Oslo financial market via the stock-listed MPC Container Ships (MPCC) – has launched a new investment platform with Storm Capital. Under the brand MPC Storm Maritime Opportunities (MSO), more than $70 million in equity is to be raised. With the first closing, equity commitments with a volume of $35 million have already been raised “from renowned investors with extensive maritime expertise”, according to a statement.
The aim of the initiative is to “invest opportunistically in maritime assets across various market segments”, the new partners announced. The focus is on modern second-hand vessels in the bulk, tanker, container and offshore sectors. The employment strategies range from the spot market to long-term charter contracts.
Morten E. Astrup, Founding Partner of Storm Capital Management AS, emphasized that he was looking for a resilient platform for his shipping investments – and found it in MSO. “It builds on our selective equity and project experience. MPC Capital is a renowned partner with deep industry know-how. Together we are creating a unique platform to capitalize on attractive opportunities across the entire shipping cycle.” Storm Capital Management AS is a Norwegian asset manager, founded in 2006, with approximately €1.1 billion under management, predominantly in Nordic credit and fixed income markets. The MPC Capital Group manages more than 400 assets with a total value of €5.3 billion.
MPC Capital CEO Constantin Baack expressed his confidence at the launch of MSO: “Based on our long-standing cooperation with investors and industry partners from the global shipping industry, we are now taking the next step together with Storm Capital. With MSO, we are institutionalizing and scaling our maritime investment approach. The platform is designed to be further expanded with additional investors and a growing pipeline of attractive assets and projects.” Some time ago, talking to HANSA, Baack already made public that MPC was looking at other investment platforms in addition to MPCC and also wanted to cover various shipping segments.
The first closing was reportedly made possible by the participation of “high-caliber investors such as Klaveness Marine, Portline and Uthalden”. Their early involvement underlines the confidence “in the managers’ ability to identify and professionally manage attractive investment opportunities”. There is a significant co-investment from MPC Capital and Morten E. Astrup. No information was provided on the size of the respective investments.
The aim is to achieve a combination of a net return of around 15% p. a. IRR and an attractive current yield depending on the project structure. The typical investment ratios are between 20% and 50% and are to be supported by a “conservative financing structure”. The platform is initially structured as a private partnership and is to be converted into a regulated fund structure in Luxembourg as part of the second closing.
