New York merchant bank Zenith Capital Partners has strengthened its partnership with US tanker manager and charterer Mjolner Shipping through a new investment.
The bank said it has pumped cash into a wholly owned unit of the New York operator that provides cargo finance, insurance and hedging solutions.
The deal builds on a "strong relationship" with Mjolner Shipping established in 2017 with the launch of Mjolner Solutions, a fund focused on trading crude and product tankers.
The latest transaction closed in the third quarter, Zenith said.
Dean Fezza, Zenith Capital's president and chief executive, said: "We are excited about the growth prospects of Mjolner's global shipping and integrated logistics service offering.
"We are seeing strong demand and Mjolner's management team, led by RJ Lyons, has an outstanding track record of delivering transparent, safe and reliable solutions for their clients."
Second tanker move
Zenith Capital said it has also become a significant shareholder in Sage Energy Partners, a privately held Houston-based energy brokerage company active in both physical and derivatives markets.
Sage has controlling ownership stakes in Sage Refined Products, Liquidity Partners and IVG Energy, dealing in gasoline, blend stocks, distillates, jet fuel, naphtha, ethanol, natural gas and biodiesel, among others.
Earlier in October, Sage Energy Partners provided seed capital to newly formed Sage Tanker Partners to move into commercial management of tankers, as well as broking.
Sage Tanker Partners will have offices in Connecticut, Houston and Singapore.
Mjolner has 15 tankers under management, from panamaxes to VLCCs, and a staff of nine.
The company was formed in 2013 as a standalone outfit with seven aframaxes, after starting life the year before as a joint venture between tanker owner Overseas Shipholding Group and Core Petroleum.
Brief expanded
Zenith helped set up the tanker fund Mjolner Shipping Solutions in 2017, when the bank was called Mid-Ship Capital.
In 2019, the brief was widened from crude tankers to product carriers as well.
The fund allows investors to play the fortunes of the relevant market without needing to acquire vessels.
The idea was originally to trade ships over a fixed 3.5-year term.
The fund has targeted high net-worth individuals and family office investors.
Fezza was previously a senior vice president responsible for shipping and offshore deal origination and client coverage at HSH Nordbank from 2013 to 2015.
Before that, he was a vice president at JP Morgan’s Corporate & Investment Bank.
