HSH Nordbank: Equity funds important to shipping

Maersk Group CEO Nils Smedegaard recently wondered about the private equity funds' profitability in shipping, and there are several pitfalls, HSH Nordbank tells ShippingWatch. The equity funds have generally become more important to shipping, says the bank.

BY KATRINE GRØNVALD RAUN

Published: 13.11.14 at 08:38

A private equity fund faces numerous pitfalls when it starts investing in shipping, as a growing number of funds has done in recent years, says one of the world's biggest shipping banks, German HSH Nordbank, thus agreeing with the analysis from Maersk Group CEO Nils Smedegaard Andersen.

At the Danish Maritime Forum in October, Smedegaard expressed puzzlement about the private equity funds' investment raids in the industry while also questioning whether the funds can achieve a profitable business by investing in ships. A "zero-sum game," he called it.

Already a subscriber? Log in.

Read the whole article

Get access for 14 days for free.
No credit card is needed, and you will not be automatically signed up for a paid subscription after the free trial.

Access all locked articles
Receive our daily newsletters
Access our app

Start a free company trial today

"The challenges we face as an industry require more skills and competencies"

Photo: Lucy Nicholson/Reuters/Ritzau Scanpix

They are a generation of future maritime leaders shaped both by Covid-19 and shutdowns and now by a world filled with tension. Four potential future managers enrolled in the Blue MBA program give their take on why it is important to improve your skills.

Leading shippers prepared to pay 10% extra for sustainable transportation

Shippers are willing to pay more for ”green” transportation if it’s reliable. But they have to state their wishes more clearly, and prices have to be lowered, writes McKinsey in a new report, which provides suggestions for how to accelerate decarbonization.