KKR Jumps Into the Maritime Finance Waters

Global investment firm KKR (NYSE: KKR  ) has created a specialty finance company to lend to the maritime industry, the company announced today. The newly formed company is called Maritime Finance Company.

Maritime Finance will focus on lending to offshore oil-field services companies as well as shipping companies. The company will be headed by Kristan Bodden and Gabriel Tolchinsky, former partners at Helios Advisors.

According to KKR, the new company will be provided with $580 million of equity, 45% provided by KKR, KKR Financial Holdings (NYSE: KFN  ) , and MerchCap Solutions. The rest of the capitalization will be from "various family offices, mutual funds, hedge funds and specialist financial services investors," according to KKR's statement.

"This is an area that has historically been served by European banks," said Bodden in a statement. "The current dislocation in the European banking sector has created a substantial funding gap in maritime asset financing. With Maritime Finance, we are capitalizing on an opportunity to fill an obvious void while at the same time aiming to provide compelling returns and attractive yields for our investors."

Maritime Finance says its lending will be secured by assets such as offshore drilling rigs, development and production assets, subsea construction vessels, and traditional shipping assets.

link


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2602789, ~/Articles/ArticleHandler.aspx, 9/18/2014 10:04:45 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement