September 19, 2018

NY hedge fund plans to list trust

New York-based hedge fund EnTrustPermal is to list a $250 million investment trust to lend to the shipping industry.

The vehicle, Blue Ocean Maritime Income, will seek an initial public offering (IPO) on the London Stock Exchange (LSE) of 250 million ordinary shares at a per share issue price of $1.00.

Blue Ocean will aim to generate long-term shareholder returns from income distributions as a result of direct lending and similar financing to vessel owners, operators and other maritime businesses.

Loans mostly will be senior secured and made to small and medium-sized privately-owned shipping companies.

The fund will target a net asset value (NAV) total return of 8% to 10% over the medium term.

EnTrustPermal said the shipping industry needs approximately $80 billion of finance annually.

EnTrustPermal began its Blue Ocean shipping strategy in 2016 and has deployed over $300 million to finance 55 vessels.

The fund expects to list and begin dealing in ordinary shares on the specialist fund segment of the LSE from 23 October.