Mitsubishi Corp’s Connecticut-based asset management arm it set to launch a $750m private equity fund to focus on opportunities in the shipping industry.
Bloomberg reported Mitsubishi had agreed to put $50m in the fund and provide a further $50m via a debt facility while the fund is raising capital.
The MC Seamax Shipping Opportunities Fund plans to buy up to 35 container ships, which will be leased to liner companies.
The fund offers a 12 per cent preferred hurdle to investors who commit before the first close and a ten per cent hurdle to those who follow.
It will also charge a management fee of 1.25 per cent and 20 per cent carried interest.
The report said that Mitsubishi noted that demand for vessels is increasing, while buyer competition remains low. The presentation also showed that container ship values are currently near 25 year lows.
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