Northern Shipping Fund Closes above Target

Northern Fund Management America LLC (“Northern Shipping”), an alternative capital provider to the shipping and offshore oil service sectors, said that it has completed a final closing for Northern Shipping Fund III LP, with total investor commitments of $505 million. The fund is one of the largest dedicated to maritime credit.

 

The oversubscribed maritime credit fund, managed by Northern Shipping, exceeded its initial target of $400 million. The fund received commitments from a diverse group of institutional investors including public and private pension plans and other institutions, as well as high net worth family offices and shipping executives.

 

Led by Sean Durkin and Sybren Hoekstra, the fund will continue the firm’s strategy of directly originating, structuring and maintaining a diversified portfolio of investments within the maritime sector.

 

“We are pleased to have received strong support from institutional investors and large family offices who value our asset based credit strategy and our focus on capital preservation and current yield,” said Sean Durkin, Managing Partner, Northern Shipping.

 

“We believe that a favorable investment climate exists for our alternative credit strategy as the maritime sector continues to suffer from the retrenchment of traditional lending from European banks,” said Sybren Hoekstra, Managing Partner.

 

Eaton Partners, LLC and Manor Private Capital, LLC served as placements agents for the fund, and Seward & Kissel served as counsel.

 

“Sector-focused credit strategies are increasingly topical for LPs looking to back operationally skilled managers that have a history of providing outsized yields and downside protection,” said Jeff Eaton, partner at Eaton Partners. “This trend is likely to carry on into 2017 as LPs look for differentiated strategies with uncorrelated cashflows.”