SevenSeas fund buys first bulker
A unique aspect of SevenSeas is that it has negotiated capital protection cover from Klapton Insurance to protect the value of investments in the company
Launched by two Greek managers in 2018, the Luxembourg-domiciled fund is stressing risk-mitigation and has appointed Seabury Maritime to help step up capital-raising
SEVENSEAS Investment Fund, an open-end Luxembourg-domiciled ‘Sicav’ shipping investment fund , has acquired its first handysize bulk carrier and is looking to raise more cash, it has emerged.
The fund has acquired the 37,000 dwt Federica, an eight-year-old bulker built at Hyundai Vinashin.
The vessel is understood to be trading in the Atlantic under a time charter at a daily rate of more than $10,500 that lasts until May.
Federica is being managed by Nautilus Energy Management, together with Tomasos Brothers, which sold the vessel to the fund, it is understood.
Nautilus and Diamantis Pateras Maritime launched SevenSeas about two years ago with the ambition of raising as much as $100m, initially towards acquiring dry bulk tonnage ranging from handysizes to ultramaxes.
The mandate of the SevenSeas 1 sub-fund — other sub-funds for other sectors could follow under the same structure — is for vessels of 35,000-65,000 dwt and of between four and 10 years of age.
Akis Tsirigakis, chief executive of SevenSeas and Nautilus, admitted that initial capital raising had been “slow”.
However, he said that there had been “a lot of interest” from investors that wanted to see the fund make its first acquisition and provide some operational numbers before committing.
“We are now starting our efforts to attract additional equity and we are looking to grow the fleet,” said Mr Tsirigakis. He told Lloyd’s List that SevenSeas has not yet undertaken a formal roadshow but has now appointed Seabury Maritime, a member of the Seabury Capital Group, to assist in sourcing US investment.
SevenSeas is planning to distribute “a minimum” of 6% to investors twice annually, with possible higher distributions to be considered on an ad hoc basis.
In addition to focusing on segments of dry bulk that have historically covered operating expenses even in the worst markets, the fund has set out to “mitigate the risks to the extent possible,” Mr Tsirigakis said.
A unique aspect of SevenSeas is that it has negotiated capital protection cover from Klapton Insurance to protect the value of investments in the company.
It is also aiming to use mainly equity and keep debt below 40%, said Mr Tsirigakis.