FINDING EQUITY INHAMBURG

Equity is the Holy Grail in the shipping business; it is a magical form of capital that can be leveraged to create and wipe-out value. The challenge for you shipowners, of course, is that you need a heck of a lot of it to gain a seat at the green felt table known as shipowning. If you haven’t been gifted equity by a parent or made it elsewhere, there are still various ways to get your hands on shipping equity. You can manufacture it with excessive valuations and address commissions; you can rent it from a mezzanine fund, you can raise it from investors, or your can create it by securing highly leveraged financing on the back of a creditworthy charter obligation. The options sound vast, but these days it’s a lot easier said than done!

In our view, the single place that we know of to source equity and highly leveraged finance at reasonable prices/terms is in the German KG Market. Combine retail equity with tax breaks and a slug of cheap German bank debt, and you have an old school shipping opportunity. Our enthusiasm for ship financing in Germany is precisely why we are hosting our First Annual Ship Finance Forum Hamburg on April 11th. From banks to KG houses to shipowners, shipbrokers to investors, lawyers to flags to class, this event is an outstanding opportunity to grow your business. We’ll see you there!!!

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