Atef Abou Merhi, managing director of Pelagic Partners, has some ship investment advice for Splash readers.
When it comes to financial investment, the maritime industry represents an exciting, diverse and fast transitioning market – and one full of opportunity.
The industry is currently grappling with much challenge and change; both from a geopolitical perspective, where world events are having a significant impact on supply chain operations, as well as from an environmental perspective, where the industry is under pressure to improve its sustainability credentials and meet ambitious 2050 decarbonisation targets to combat climate change. These elements have a direct impact on maritime markets, and while these pressures do represent significant challenges to those with a vested interest, they also present substantial opportunities for investment.
From an investment perspective, the maritime market has experienced a relative period of growth over the past five years, however, due to the cyclical nature of the market, certain segments are approaching their peak cycle which represents a critical phase for fund managers in terms of how they navigate these periods, in order to maintain their market strategy and secure the strongest return on investment.
Unlike traditional fund managers, who tend to approach shipping investment in terms of ‘pure asset plays’, Pelagic Partners takes a longer-term view, utilising our shipowning heritage to increase investor value through the effective management and operations of running a fleet profitably. This means that when this current peak does correct, we will be positioned to take advantage of the opportunities that come with the subsequent drop in the market.
Through maintaining a vessel agnostic approach as diversified specialists, we are able to capitalise on the various ebbs and flows of the market.
Pelagic Partners was established in 2020 to challenge the conventional wisdom of the industry, where shipping funds were largely undertaken by outside financiers, who possessed limited exposure to the market, with little knowledge and experience of the industry, or the shifting dynamics and opportunities that exist.
It is a uniquely exciting time within the maritime investment space as we enter our fifth year.
