PwC: Shipping a volatile growth market for equity funds

When equity funds enter the shipping industry they take on big fluctuations and a big potential. They will continue to do so, the auditing and consulting company PwC assesses.

Photo: Hyundai Merchant Marine

Equity funds have entered the shipping industry for the long haul. In coming years, they will make further acquisitions. That is the assessment of Michael Eriksen and Bo Schou-Jacobsen, Manager of the Corporate Finance Department and Manager of Transport & Logistics in the auditing and consulting company PwC. They have both acted as consultants in several purchase and sales processes.

“My first experience with equity fund acquisitions in shipping was in 2007. Since then, we have seen multiple transactions. When equity funds enter shipping they enter one of the more volatile markets in which e.g. rates may fluctuate quickly and heavily. In general, this has meant that equity funds have stayed away from the industry but as the shipping industry grows in general it may eventually turn out to be a good investment for the funds – we may call it a volatile growth market”, Michael Eriksen says.

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