Oak Hill Advisors and Värde Partners Acquire $1 Billion Shipping Loan Portfolio
LONDON – Oak Hill Advisors (“OHA”) and Värde Partners (“Värde”) announced today they entered into an agreement to acquire a US$1 billion portfolio of shipping loans from Deutsche Bank. The transaction is expected to close in the third quarter of 2018 pending regulatory approvals. This represents the second sale of shipping loan portfolios from European banks that Värde and OHA have acquired together.
“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,” said Stephen Seymour, 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.”
With over 40 loans secured against 70 vessels, the loan portfolio has underlying exposure to a diversified pool of shipping sectors and borrowers.
“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,” said Alexis Atteslis, Portfolio Manager and Managing Director at OHA who also heads the firm’s shipping investment activities. “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.”
About Oak Hill Advisors
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. The firm’s investment activities are concentrated in North America and Europe. OHA manages multi-strategy and single strategy credit funds, distressed funds, collateralized loan obligations, other customized mandates and a business development company. The firm’s investment activities are driven by a fundamental value-oriented philosophy focused on credit analysis, relative value analysis, risk-adjusted return generation, loss avoidance and active risk management. The firm invests on behalf of a diverse, global investor group. 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.
About Värde Partners
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. The firm sponsors and manages a family of private investment funds with a global investor base that includes foundations and endowments, pension plans, insurance companies, other institutional investors and private clients. Founded in 1993, Värde employs more than 300 people globally with regional headquarters in Minneapolis, London and Singapore.