ShippingWatch

Danish Ship Finance has reservations about equity funds

"We won't support companies established out of an equity fund's need to place cash, which constitutes speculative orders that will prolong the crisis in shipping," says CEO Erik I Lassen, Danish Ship Finance, in an interview with ShippingWatch.

Photo: Danmarks Skibskredit PR

Danish Ship Finances has reservations about financing ships for companies established on behalf of the private equity funds that have entered the global shipping industry in recent years.

"Today, the rebound in certain parts of the shipping industry is being delayed by the significant capacity influx from private equity funds. In Danish Ship Finance, our basic attitude is that we won't support companies that are established as the result of an equity fund's placement need, meaning that equity funds contracting ships based on hopes for an upside and a belief in a limited downside. These speculative orders help prolong the crisis for for some of the shipping companies who are already struggling," says CEO Erik I Lassen, Danish Ship Finance, in an interview with ShippingWatch.

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