Banking Institutions Handing Out Money!

Banking institutions seeking more returns, higher fees and greater margins from shipping is nothing new. However, a new or revived twist on this approach to increase “profits” is the formation of private equity funds to invest the bank’s own capital. When I first started investing in shipping, in 1986, a wise shipbroker provided insight into shipping, “Caveat Emptor”. It appears that banks need to be reminded of the pitfalls, rather than the “pot of gold at the end of the rainbow”.

This is not to say that shipping cannot provide equity investors with attractive returns, we believe it can. However, the process and approach that is taken by equity investors towards making an investment in shipping, particularly a direct investment/ownership in ships, is substantially different than a lending decision by a commercial loan officer.

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