Fund with a Difference
Our founders are experienced, independent shipowners and managers. We understand the shipping markets and have access to deal flows and investment opportunities.
Our control of the whole chain allows us to close market level acquisitions and make them competitive. We understand the complexities of running ships and know how to manage and operate a fleet profitably.
With our founders’ experience in running their own family-owned shipping groups, H.M. Pelagic Partners RAIF V.C.I.C PLC is run in a similar fashion to a traditional shipowning company.
H.M. Pelagic Partners RAIF V.C.I.C PLC is based in Cyprus, one of Europe’s key ship management hubs and a jurisdiction of choice for Fund Managers and Alternative Investment Funds. Enacted in 2018, the Alternative Investment Funds Law provides investor protection and transparency through a regulatory framework which is aligned with the EU directives.
H.M. Pelagic Partners RAIF V.C.I.C PLC is run by an experienced team within the industry.
The Fund’s Founders, who are anchor investors in the fund, are shipowners who have access to and intimate knowledge of the shipping markets. Investments are primarily driven by the founders’ outreach, experience and network which have been developed over the past 30 years..
Our investment strategy is built on three pillars:
- Vessel values and the respective downside risk
- Market sentiment
- Operational flexibility and cashflow generation within the group
We invest in a diversified set of maritime assets including bulk carriers, oil tankers, chemical & product tankers, ro-ro vessels, general cargo vessels, gas carriers, containerships, and offshore support vessels.
The shipping markets are cyclical, through prudent vessel management, we aim to ensure a steady dividend distribution stream to our investors.
An investment in shipping is an investment in global trade: 90% of global trade moves by sea.
H.M. Pelagic Partners RAIF V.C.I.C PLC (the “Fund”) is registered and incorporated under the Laws of Cyprus with Registration Number HE 408436 and authorised by the Cyprus Securities & Exchange Commission (“CySEC”) to operate as a Registered Alternative Investment Fund with Registration Number RAIF30.
The Fund has various compartments with each having its own unique approach to investment strategy, risk appetite, returns, and investor relations.
Pelagic Fund I
Launched in Q3 2020 and closed in Q4 2021 with a current AUM of USD 60 million. This compartment is no longer open for subscriptions.
Pelagic Fund I has the architecture to provide diversifying investors with the opportunity to invest in the shipping industry and capitalize on a combined 65 years of expertise brought forward by two founding families of second-generation shipowning. Pelagic Fund I limits investments only into shipping sectors in which the Fund Manager has decades of experience managing both commercially and technically.
The timing of Pelagic Fund I shaped the strategy to focus on capturing vessels in struggling markets against positive market forecasts, and operating over the lifespan of the compartment on low and sustainable break-even levels. This is further boosted by maintaining a leverage level that is much lower than normal practice in the industry. The investment strategy of Pelagic Fund I also paves way for entering into joint venture transactions with industry-experts, allowing investors to have exposure to various shipping sectors without the need for debt financing.
Pelagic Fund I closed for subscriptions following the acquisition of 10 vessels across the dry bulk, car carrier, tanker, and gas carrier segments. The compartment has a lock-up period until 2027 and is expected to yield returns exceeding expectations, mainly driven by positive market recovery and solid asset appreciations.
Pelagic Yield Fund
Launched in Q1 2022 and is live with a target AUM of USD 100 million. This compartment is currently open for subscriptions.
Pelagic Yield Fund’s investment strategy is to acquire shipping assets in segments in which the Fund Manager has core expertise by implementing an opportunistic and diversified approach. Such shipping assets include, but are not limited to, bulk carriers, tankers, gas carriers, pure car and truck carriers (PCTC) and offshore support vessels.
The Fund Manager aims to generate returns for investors mainly through obtaining time and bareboat charters of mixed durations while also adding some exposure to the spot market through pool employments. In addition, the Fund Manager shall also evaluate opportunities to realize returns through selling assets that have appreciated in value.
The Fund Manager aims to structure Pelagic Yield Fund with the target of achieving steady cash flow yields with controlled volatility by employing 50% of the acquired fleet on steady and credible charters. The Fund Manager aims to generate returns for investors mainly through obtaining time and bareboat charters of mixed durations while also adding some exposure to the spot market through pool employments. Pelagic Partners’ shareholders will invest in at least 10% Pelagic Yield Fund’s investment shares, and the compartment is now live for subscriptions.
Pelagic Wind Fund
Launched in Q2 2022 and is live with a target AUM of USD 360 million. This compartment is currently open for subscriptions.
Pelagic Wind Fund has plans to become a leading provider of supply vessels to the growing offshore wind industry. Pelagic Wind Fund has secured 2 Firm + 4 Optional (2 + 2 + 2) newbuild orders for highlight attractive Construction Service Operation Vessels (‘CSOVs’) at Cochin Shipyard in India.
Pelagic Partners’ shareholders committed EUR 12 million to finance the first yard instalments for 2 of the high-end CSOVs and the compartment is now live for subscriptions to materialize the whole orderbook of 6 CSOVs. The purpose-build vessels are built on Kongsberg’s UT 5519 HL-design and have the most advanced European makers list to be delivered in 2025 and 2026 (with optional vessels in 2026 and 2027). The design and equipment are carefully selected from best-in-class makers to become the most advanced vessels seen to date, with zero emission vessel capacities already built into the design through dual fuel engines. The vessels superior hotel facilities and attention to onboard logistics allows for increased efficiency and healthy working environment.
Pelagic Wind Fund’s portfolio will be managed by in-house technical and commercial management with strong track record in the offshore and shipping space. The commercial strategy is to make the most of the market imbalance and structural growth trend in the offshore wind sector, and by leveraging Pelagic Partners’ vast experience in newbuilding supervision and technical and commercial experience. The fleet will utilize Pelagic Partner’s extensive network and carefully balance longer-term and shorter-term contracts with key clients in the offshore wind industry going forward.