US alternative financier EnTrust Global is lining up new eco-shipping investments after closing its latest fundraising drive at $2.1bn.
The company said it had raised $925m for its Blue Ocean Funds since April alone.
Blue Ocean is part of EnTrust's private debt and real asset division, offering funds to vessel owners and operators.
"We continue to see strong demand for our debt capital solutions from clients around the world, and we have continued to deploy capital efficiently to our select customer base while also successfully maintaining the quality of our existing portfolio throughout a very tough time period as a consequence of Covid-19," said Svein Engh, senior managing director and portfolio manager of Blue Ocean Funds.
Gregg Hymowitz, chairman and chief executive of EnTrust Global, said the company is grateful for strong support from investors during a volatile market as the economy has navigated the pandemic.
"To have raised $2.1bn in a vertical as specific as the maritime industry speaks to our team's expertise and demonstrated success since the inception of the Blue Ocean Funds," he added,
New recruit driving innovation
EnTrust brought in Julian Proctor, former managing director of Hong Kong boxship investor Tiger Group, earlier this year to lead a new, environmentally-focused shipping initiative.
Hymowitz said: "We continue to believe there are compelling opportunities in the maritime industry and in real assets in general."
Proctor heads the firm's new focus on environmentally-advanced vessels with Engh.
"Vessel owners and their customers and end-users are increasingly focused on the impact of the shipping industry on the environment, and especially on carbon emissions, but there is inadequate financing for the industry to move to cleaner, more advanced technology," Proctor said.
"I am excited to lead EnTrust’s initiative to create financing solutions for vessel owners that will help transition the shipping industry to a more sustainable future."
Pandemic speeding up lending
EnTrust, which has $18.2bn in total assets, was co-founded in 1997 by Hymowitz following his investment career at Goldman Sachs Group.
TradeWinds reported in August that the coronavirus pandemic had only sped up Blue Ocean Funds' maritime lending.
Entrust has doled out portions of its previous $1.5bn fundraiser in more than 13 deals in 2020 as banks continue to pull back from shipping.
Globus Maritime and Danaos Corp were among the owners tapping the company for cash this year.
Buying low
Blue Ocean still intends to invest cyclically to decrease risk, moving in sectors near the bottom of the cycle, TradeWinds has been told.
Around the time of EnTrust's creation, US investment manager Legg Mason acquired 65%.
That relationship ended in August, with Hymowitz reacquiring the stake as investment firm Franklin Templeton closed on its $4.5bn acquisition of Legg Mason.
In September 2018, Blue Ocean explored a $250m initial public offering in London, hoping to sell 250m shares at $1 apiece.
The next month, it announced the effort had been "postponed" due to a "challenging background" despite investor interest.
