A historic coastal shipping company with two centuries of life was sold. The British Red Funnel was acquired by the investment firm Njord Partners in late September 2025, marking a new chapter in its course.
One of the most historic coastal shipping companies in the world, dating back to the distant 1820, was sold!
According to reports, the British Red Funnel changed hands in late September and was sold to the British investment firm Njord Partners.
While the company has been owned by a consortium of British and Canadian pension funds since the early 1990s, there are still concerns about the preservation of the service, which is a “lifeline” for the Isle of Wight.
Red Funnel has been facing very serious financial problems in recent years, with Njord saying that the large debt had resulted in restricting the company’s capacity for new investments.
On the other hand, there are strong protests from the islanders about the inflated ticket prices at a time when it is an unreliable service.
The situation became even worse in 2024 when the company acquired the passenger vessel Hythe Ferry with the aim of operating the route between Hythe and Southampton Town Quay.
Only a few months after its acquisition, it was announced that the vessel would need to undergo
some repairs, with its service ultimately being suspended in August 2024!
Red Funnel’s Chief Executive Officer, Fran Collins, described the company’s acquisition by Njord as a new chapter. Njord Partners, she said, gives them the confidence and the resources to support their ambitious future plans.
Njord Partners highlights its “strong track record in investing and supporting the growth of businesses in the United Kingdom, helping companies to excel by enhancing their operations, improving products and services, and serving customers and communities”.
The company states that it “has particular expertise in the sectors of hospitality and shipping”, having companies in its portfolio such as Ambassador Cruise Line, Geoquip Marine, and Valiant Pub Company.
The historic company Red Funnel was founded in 1863 and for over 164 years has been providing transport across the Solent, connecting the Isle of Wight with Southampton.
The company has built specialized Ro-Pax vehicle ferries and has also introduced the Red Jet Hi-Speed passenger catamarans. It operates year-round with over 30,000 sailings, including 18,600 with the Red Jets and 11,800 with its /vehicle ferries.
It claims to have carried over 2.3 million passengers and over 857,000 vehicles to East Cowes and another 1.1 million passengers to West Cowes with the high-speed vessels. The company also operates Red Funnel Holidays for trips to the Isle of Wight.
Njord states that it is committed to restructuring Red Funnel’s finances. The Isle of Wight’s two MPs, according to the BBC, fear that the service will be treated as a “cash cow” for the private equity firm.
The case of this historic company shows us the difficulties a passenger ship management company is called upon to face, especially if a wrong decision is made.
