MEDIUM RANGE PRODUCT TANKER OPPORTUNITY
The decade-long credit crunch has created an opportunity for new capital sources to partner with experienced management in the Medium Range (MR) Product Tanker market.
Current MR prices and new supply ordering activity are artificially subdued by the industry’s curtailed access to capital, making today an extremely attractive cyclical entry point.
Assets are trading at historically low values with high appreciation potential, generating low exit price sensitivity on returns. Earnings remain healthy, covering operating expenses by a comfortable margin and allowing for reasonable use of leverage.
The MR newbuilding order book will not be sufficient to meet demand growth, driving up freight rates and vessel values soon thereafter.
We seek to raise $200M-$500M of equity to purchase 20-30 modern vessels, and can deploy up to $1 Billion in the MR market over three years.
Over ten years, investors in MR product tankers can expect 10%+ unlevered returns on a significantly de-risked niche asset class.