Oak Hill Advisors and Värde Partners said they have entered into an agreement to acquire a $1 billion portfolio of shipping loans from Deutsche Bank. The transaction is expected to close in the third quarter of 2018 pending regulatory approvals.
Oak Hill Advisors is a leading independent investment firm with approximately $33 billion of capital under management. OHA has over 25 years of experience investing in a variety of asset classes, including performing and non-performing corporate credit, shipping, real estate, aviation and structured products as well as private equity.
Värde Partners is a $13 billion global alternative investment firm that employs a value-based approach to investing across a broad array of geographies, segments and asset types, including real estate, corporate credit, mortgages, specialty finance, real assets and infrastructure.
This represents the second sale of shipping loan portfolios from European banks that Värde and OHA have acquired together, said a top official.
"We view this investment as part of our long-term commitment to provide alternative capital to the shipping industry as traditional participants reduce their exposure and change tack following a challenging period for the sector as a whole," remarked Stephen Seymour, the managing director at Värde responsible for the firm's investments in the transportation sector.
"We are pleased to partner with OHA again as we continue to find compelling investment opportunities as banks divest out of legacy loan portfolios," stated Seymour.
With over 40 loans secured against 70 vessels, the loan portfolio has underlying exposure to a diversified pool of shipping sectors and borrowers, he added.
Alexis Atteslis, the portfolio manager and managing director at OHA, said: "We believe the structural changes in the shipping finance industry present an opportunity for flexible capital providers, and we are uniquely positioned given our platform, expertise and relationships in the sector to underwrite and manage these investments."
"We are excited to be a partner to the banks, high caliber shipowners and borrowers, as we continue to expand our global shipping and transportation business," stated Atteslis, who also heads the firm's shipping investment activities.
A major investment player focusing on North America and European maarkets, OHA manages multi-strategy and single strategy credit funds, distressed funds, collateralized loan obligations, other customized mandates and a business development company.
OHA employs more than 300 people globally and is headquartered in New York, with other key offices in London, Los Angeles, Hong Kong, Sydney and Fort Worth, Texas.-TradeArabia News Service