Pelagic Partners, shipowner and fund manager of Niels Hartmann, completed the IPO in Oslo with a new investment platform.
The Cyprus-based company of Niels Hartmann and Atef Abou-Merhi aims to “generate stable and predictable cash flows” with Pelagic Credit under the leadership of Tobias Backer, as stated in a press release. Backer explained that the aim is to close the current capital gap in the shipping industry and meet the demand for structured leasing transactions.
The basis is to be long-term contracts for “maritime assets”. Initially, this will involve four ships, each chartered out for five years. Pelagic Credit offers structured financing solutions for the shipping industry. The initial capital is estimated at 75 million US dollars, which will be provided by Pelagic Partners. However, there will be capital increases in the course of the year.
“Recent developments on the capital markets have limited investment opportunities in shipping companies with long-term employment contracts,” is the reason given for the project. Pelagic Credit’s approach is therefore based on “bareboat triple-net leasing contracts”.
Atef Abou-Merhi, Managing Director of Pelagic Partners, said: “We are literally investing in maritime performance together with our partners. The launch of Pelagic Credit is a significant milestone for Pelagic Partners’ growth and strengthens our market-focused position as a diversified specialist in the maritime and offshore sector. Our investment strategy is based on a partnership approach and is supported by an ongoing strategy of co-investment based on our longstanding experience and expertise as shipping companies.”
Pelagic Partners was founded in 2020 by Niels Hartmann – also CEO of the Leer and Cyprus-based shipping group Hartmann – and has since invested in a number of vessels and newbuildings. The fleet now comprises 31 ships. While the initial focus was on offshore vessels, bulkers, gas tankers and car carriers, MPP vessels have also recently been added to the fleet.
