Legg Mason targets shipping industry debt with fund float

EnTrustPermal, an affiliate of Legg Mason, has launched an IPO on the London Stock Exchange to raise $250m for the Blue Ocean Maritime Income investment trust, which will target direct lending to the shipping industry.

The manager estimates an ongoing annual debt requirement of some $80bn in the industry, which since the 2008 financial crisis has seen access to traditional sources of financing via banks disappear. Before the crisis, European banks provided more than 80% of the industry’s financing.

The fund targets a yield of 7% annually by lending to what it defines as “high quality” shipping companies, predominantly SMEs.

The strategy has been pursued since September 2016, lending some $300m to finance 55 vessels, the manger said.

The IPO is open for a month. Details are available via www.blueoceanplc.com.

EnTrustPermal is an alternative manager with some $20.7bn in assets under management.


Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 17 years he has been based in London writing about funds and investments. From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope. Jonathan was awarded Editor of the Year at the Professional Publishers Association (PPA) Independent Publisher Awards 2017. Shortlisted for the same in 2016, he was also shortlisted in 2017 and 2015 for the broader PPA Awards category Editor of the Year (Business Media).

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