Pelagic Yield Fund, our second compartment, continues to expand with another vessel. Summit Africa is an LR tanker which was built 2009 at New Times Shipyard in Jingjiang, China with a capacity of 73,500 dwt. The vessel is currently trading within the HafniaPool.
“Given the extreme low orderbook, we project that the market will enter into negative supply growth within next 24 months. This is accompanied by a strong increase in ton mile demand due to changing geopolitical circumstances.” Atef Abou Merhi stated. “We furthermore believe the changes in market fundamentals will benefit the LR segment hence our diversification from our already existing MR fleet. The LR pool at Hafnia has extreme strong management and proven track record that makes us comfortable with our investment strategy”.
The Pelagic Yield Fund
Established in February 2022, the Pelagic Yield Fund applies the successful strategy of Pelagic Fund I, the latter currently controlling USD 70 million AUM across 8 diversified vessels.
The new Yield Fund combines the diversification in asset types and employment with relatively low leverage. Its strategy comprises fixing half of the vessels on charter contracts to enhance cashflow visibility and generate annual yield, while leaving sufficient exposure to the spot market and the anticipated upswing. With the kickstart of the Yield Fund and the product tanker acquisitions, the total number of vessels owned by Pelagic Partners is currently at 11, with 2 more under construction.