DVB launches $250m investment fund

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DVB Bank, the specialist in transport finance, has unveiled a $250m fund for opportunity-driven investments in the shipping and offshore industry by way of tackling the economic slump head on.

With some maritime assets trading well below their intrinsic value, the fund, formed via DVB’s Shipping and Intermodal Investment Management (SIIM) team, hopes to create an opening for long-term investment as values eventually recover.

Eric Snellen, Managing Director and Head of SIIM said: “I am confident that the new DVB Invest Opportunity Fund will attract a lot of interest from potential investors. In the current financial market crisis I see other investment opportunities, such as high-yielding bridge finance, discounted debt and public securities, trading well below their intrinsic values.

“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,” he added.