Cypriot shipowner and shipping fund manager Pelagic Partners has announced the successful listing and the first day of trading of its new investment platform, Pelagic Credit, on the Oslo Stock Exchange.

Pelagic Credit is a yield-oriented shipowning company focused on generating stable, predictable cash flows through long-term contracted employment of maritime assets, providing structured financing solutions to the maritime industry, supported by an initial capital raise of $75m, anchored by Pelagic Partners.

Recent developments in the capital markets have reduced the available options for parties looking to invest in a shipowning company backed by long-term employment contracts.  

With a strong deal flow pipeline and an investment right of first refusal from affiliated companies, Pelagic Credit anticipates successfully deploying the initial capital raise in the near term and expects to proceed with follow-on capital raises throughout the year.

The company’s approach is based on bareboat triple-net leases, ensuring 100% revenue days, no exposure to operational costs, and predictable cash flows, supported by an initial fleet of four vessels, all of which are chartered on five-year leases.

“By primarily focusing on counterparty risk, rather than timing market volatility and residual value optimisation, Pelagic Credit seeks to generate equity-like returns for lower-risk, debt-like transactions,” said Tobias Backer, CEO of Pelagic Credit.

“Our investment strategy is underpinned by a partnership-driven approach, supported by an ongoing strategy of co-investment, which is driven by extensive heritage and expertise as shipowners,” added Atef Abou-Merhi, managing director of Pelagic Partners.