Alternative investment firms Oak Hill Advisors (OHA) and Värde Partners have partnered to acquire a $1bn (€864.1m) portfolio of shipping loans from Deutsche Bank.
Stephen Seymour, a managing director at Värde, said: “We view this investment as part of our long-term commitment to provide alternative capital to the shipping industry as traditional participants reduce their exposure and change tack following a challenging period for the sector as a whole.”
The partnership represents the second sale of shipping loan portfolios from European banks that Värde and OHA have acquired together.
With over 40 loans secured against 70 vessels, the loan portfolio has underlying exposure to a diversified pool of shipping sectors and borrowers.
“We are pleased to partner with OHA again as we continue to find compelling investment opportunities as banks divest out of legacy loan portfolios,” Seymour said.
Alexis Atteslis, a portfolio manager at OHA, said: “We believe the structural changes in the shipping finance industry present an opportunity for flexible capital providers, and we are uniquely positioned given our platform, expertise and relationships in the sector to underwrite and manage these investments.
“We are excited to be a partner to the banks, high calibre shipowners and borrowers, as we continue to expand our global shipping and transportation business.”
The transaction is expected to close in the third quarter of 2018 pending regulatory approvals.