In order to partake in the expected growth within offshore wind turbines, Navigare Capital Partners has made a considerable investment in five vessels for servicing of offshore wind projects.
Navigare Capital Partners, which has Maersk Chair Robert Mærsk Uggla and four other partners in its group of owners, makes a strategic turn and invests heavily in the growing market for offshore wind.
The investment concerns five service operations vessels (SOVs) and commissioning service operation vessels (CSOVs) for servicing of offshore wind projects, confirms Henrik Ramskov, managing partner at Navigare Capital Partners, to WPO.
”Within the last year to year and a half, it has become clear that offshore wind is developing into an even stronger area for growth. It has also moved further up on the political agenda, not least after the tragic development in Ukraine, which has made politicians wish for an acceleration of the green transformation and the security of the energy supply,” says Ramskov.
Furthermore, there is a significant growth agenda, and that we like
HENRIK RAMSKOV, MANAGING PARTNER, NAVIGARE CAPITAL PARTNERS
”This means there will be a broader activity and a higher degree of liquidity on the market. Furthermore, there is a significant growth agenda, and that we like.”
Navigare has up until now bought ships and made them available for chartering, however, the company has this time chosen another way by investing in the Norwegian company Norwind Offshore.
”The more we spread out, the more we strain ourselves, and therefore we thought it would be interesting to invest in a platform which is why we have ended up with this constellation with Norwind,” states Ramskov.
Invests in five SOVs
Norwind Offshore is a company, whose founders have a background from the offshore oil industry and are building a fleet of vessels for servicing of the offshore wind industry.
This concerns a modern SOV, which has already been delivered and will enter into a chartering deal with an unnamed customer in June.
And furthermore, an investment in four other CSOVs, which can be used for several tasks in relation to offshore wind farms up to 80 kilometers from the mainland. The four ships will be delivered between 2023 and 2025.
Overall, the investment has a significant size of roughly DKK 500m (USD 72m), WPO learns.
”We invest a large DKK three-digit million figure,” says Ramskov.
The private investment firm was founded in 2017 and today manages assets (vessels) of roughly USD 1.4-1.5bn via two funds. This corresponds to capital commitment from investors of roughly USD 1bn, and in addition comes lending (gearing).
Platform may be used for a third fund
”If this develops the way we hope, we may be able to use the platform in collaboration with Norwind for future funds as well. As such, other ships could come in, and these we could place in a third fund,” states Ramskov.
While Navigare’s first fund is closed for new investments, the second fund is still open and is not expected to be fully invested before the end of 2023. Here, Navigare will try to raise capital for a third fund, Ramskov says.
Within the last year to year and a half, it has become clear that offshore wind is developing into an even stronger area for growth
HENRIK RAMSKOV, MANAGING PARTNER, NAVIGARE CAPITAL PARTNERS
The investment firm is owned by five partners, of which A.P. Moller Holding CEO and Maersk Chair Robert Mærsk Uggla represents the largest part.
A number of investors, including pension providers PensionDanmark, Danica Pension and Lægernes Pension, have promised roughly DKK 1bn in capital for the funds.
The aim is a yearly two-digit yield on average.
Today, Navigare manages a fleet of 20 vessels across the funds, and the ships are divided across shipping segments such as tanker, dry bulk, container and liquefied natural gas (LNG).
In March, the company sold a container vessel of 13,800 teu to Evergreen for USD 111m, according to analyst firm VesselsValue, and this will send liquidity back to investors in the fund.
