2007

Excess Liquidity + High Transaction Costs – Individual Investors = Institutional Investment

In an innovative structure, HSH Nordbank, HSH Gudme Corporate Finance and König & Cie. together created and sold publicly Marenave Schiffahrts AG, the first listed ship-investment company in Germany. This new shipping product was designed to provide institutional investors with an option for long-term investment in the shipping market as an end as well as a tool for diversification of their portfolios. Also by marketing to institutions, the infamous front-end sales costs, associated with the retail market, were brought down to a very competitive level making future projects more viable. The company successfully raised EUR 150.05 million through a sale of shares to such institutions as insurance companies and pension funds. The targeting of institutional financial investors is a current worldwide theme which we have seen in the acquisition of Heidmar, the US assets of P&O, OOIL’s terminals and Teekay Offshore to name a few. Clearly, they have money to put to work, seem less price sensitive than industry participants and have the financial know-how to minimize risk particularly with public vehicles.

This is only an excerpt of Market Opportunities – 01/11/2007

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