Pelagic Partners Managing Director, Atef Abou Merhi, recently took part in a panel discussion during Splash 24/7’s Maritime CEO Forum, in Monaco. Atef joined fellow pannelists in a discussion focused on one of the most pressing questions facing investors in the shipping industry: “Where and how to access capital, and where best to spend it?”
The event gathered a diverse mix of leaders from across the maritime and finance sectors, providing a timely platform to discuss the unique challenges and opportunities within shipping. The industry has experienced a significant shift in funding dynamics since the financial downturn of 2008, which has led to traditional sources of capital—primarily banks – exercising more caution. A clear illustration of this trend, as noted by one of the panelists, was the noticeable absence of institutional banks among the 132 attendees this year, underscoring the rising role of alternative financing sources and solutions.
This shift presents both challenges and opportunities for forward-thinking investors, with Pelagic Partners well positioned to provide a wealth of expertise as both a ship owner and fund manager to support these investors as they navigate the dynamic maritime market; turbulent and volatile, but also richly diverse and full of opportunity. As Atef emphasised, liquidity has increased over the past five years, with a growing presence of alternative financiers and leasing funds bringing fresh capital into the market.
However, this influx of cash has also contributed to inflated asset values, creating a need for rigorous evaluation of each investment’s resilience under changing market conditions.
In his closing thoughts during the panel discussion, Atef reflected on the importance of preparing for challenging times. As he put it, building business cases around unpredictable “black swan” events – an ongoing consideration for investors within today’s volatile market environment – requires a strong emphasis on risk mitigation and proactive management.
As well as Atef’s panel discussion, Pelagic Partners’ leadership team, represented by Managing Director, Dr Niels Hartmann, Executive Director, Ahmad Abou Merhi, and Executive Director of Pelagic Capital, Tobias Backer, were also in Monaco, sharing the key perspectives that underscore Pelagic Partners unique position as a diverse specialist, with the ability and experience to invest in all segments of the shipping and offshore markets.
Pelagic Partners’ dual role as both shipowner and fund manager offers us the flexibility to respond to shifting market dynamics across a range of maritime segments by maintaining an asset-agnostic approach to investment. This agile model enables us to take advantage of high-potential projects across market cycles, ensuring we can strategically navigate the peaks and troughs of the maritime industry.
From a forward-looking, operational standpoint, the team discussed our long-term view on investments, especially as the industry adapts to 2050 decarbonisation targets and the geopolitical pressures that are impacting the global supply chain. Our latest ventures in the offshore sector, including the acquisition of two dual-fuel advanced offshore service vessels, further cements our presence within a rapidly growing and lucrative area of the market, whilst also supporting the demand for cleaner and more robust assets that are equipped to support the industry as it transition to net zero.
We’d like to extend our thanks to Splash 24/7 for hosting such a great event and to everyone we had the pleasure of speaking with during our time in Monaco.
