New fund for DVB

DVB Bank has launched a new $250m fund to target opportunistic openings in the shipping and offshore sectors.

Christened the DVB Invest Opportunities Fund it is focused on “counter-cyclical and opportunity driven investments”, the bank says.

Eric Snellen, managing director and head of the bank’s new shipping and intermodal investment management team, says the fund is eyeing openings across the container, bulker, tanker and offshore support vessel segments.

He told TradeWinds: “Given the liquidity squeeze, banks and existing players in the shipping markets can do very limited newbuilding and new investment and there are also existing investments which need to be financed.

“We see opportunities with companies which have ships on order or who want to raise cash via sale-and-leasebacks.”

Snellen says a steep decline in the value of container shipping assets has created an opening for long term investment as values will recover.

He adds there will also be opportunities at companies placed in a stress position by banks and other investors. “If they are interesting enough we can step in, clean it up and sit on it for a few years before selling,” Snellen said.

“I think if you have liquidity in this market and are a bit creative there will be opportunities,” he added.

In the offshore sector Snellen says the fund is open to sale-and-leaseback moves and purchasing vessels in joint ventures with operators.

“But we will also have to be careful with asset values as we expect there will be some pressure on them,” he said.

DVB’s shipping and intermodal investment management unit was formed following the merger of its shipping, intermodal and rail fund activities.

The bank’s funds have invested around $3bn in deals involving over 200 vessels since 1999.

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