Oslo, Norway. Pelagic Partners said its new investment platform, Pelagic Credit, has been listed and began trading on the Oslo Stock Exchange following an initial $75 million capital raise. The company described the move as an expansion of its ownership-led, disciplined maritime investment platform.
Platform focus and capital raise
Pelagic Partners, a Cypriot shipowner and shipping fund manager, said Pelagic Credit is a yield-orientated shipowning company aimed at generating stable and predictable cash flows supported by long-term contracted employment of maritime assets. It is also intended to provide structured financing solutions to the maritime industry, backed by an initial capital raise of $75 million anchored by Pelagic Partners.
Market context and deployment plans
The company said recent developments in capital markets have reduced the available options for parties seeking to invest in a shipowning company backed by long-term employment contracts. It said such companies can protect investors from broader volatility in shipping markets while generating consistent quarterly dividends.
Pelagic Credit said that, based on a strong deal flow pipeline and an investment right of first refusal from affiliated companies, it anticipates deploying the initial capital raise in the near term. It also expects to proceed with follow-on capital raises over the course of the year.
Leasing model and initial fleet
Pelagic Credit said its approach is founded on bareboat triple net leases, intended to ensure 100 per cent revenue days, no operational cost exposure, and predictable cash flows. The company said it is supported by an initial fleet of four vessels, all chartered on five-year leases.
Executive comments
Chief Executive Officer Tobias Backer said Pelagic Credit “represents a unique product within public markets” and is designed “to bridge the current capital funding gap within the maritime industry, to support the demand for structured leasing transactions”. He said that by primarily focusing on counterparty-risk, rather than “timing market volatility and residual value optimization”, Pelagic Credit seeks “to generate equity-like returns for lower-risk, debt-like transactions”.
What factors will you watch to assess Pelagic Credit’s ability to deliver predictable cash flows and quarterly dividends?