Great Circle Capital

By Matt McCleery

Equity: the mere mention of the word inspires certain members of the global shipping community to conjure images of languid summer nights on mega-yachts; mistresses with deepwater suntans sitting around negative edge swimming pools on French speaking islands and wasted days at Harry’s Bar at the Sherry Netherland Hotel in New York. Equity, in a word, is perceived by many to be the difference between players and pikers.

In reality, though, raising and investing equity involves more work, and greater stamina, than most people are capable of. Those investing equity must be vigilant since this ostensible elixir has the weakest position in the capital structure and evaporates when a deal goes anything less than brilliantly. Raising equity for shipping is also deadly-difficult for precisely the same reason – it’s like swimming upstream in an industry with lousy returns.

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