J.P. Morgan Global Alternatives Raises $480M For Second Distressed Shipping Fund

Jun 20 2017 | 8:55pm ET

J.P. Morgan Asset Management’s Global Alternatives affiliate has raised $480 million for distressed investments into the global shipping industry, easily beating its $400 million target. 

The company is seeking to take advantage of the downturn in the shipping market, according to an article in Institutional Investor. The new fund, named Global Maritime Fund II, was supported by global pensions, endowments and insurance companies and will reportedly invest in modern vessels working in sections of the industry under the greatest pressure.

Some $312 million, or 65%, of the new capital has already been invested into 14 assets, according to the article.

Shipping has been under duress since 2015 and needs $4.5 trillion in fresh capital to finance transportation assets over the next ten years, J.P. Morgan Asset Management’s Anton Pill said in a statement to II. Shipping is one of the rare global sectors in which assets are also cheap, he continued, making the opportunity significant and wide-ranging. Meanwhile, the departure of banks from the shipping industry has intensified the sector’s capital needs and created the ability for investors to acquire attractive assets at equally attractive prices.

J.P. Morgan Global Alternatives has $1.26 billion in assets deployed to shipping strategies and reportedly ranks among the top five global ship owners. 

J.P. Morgan Global Alternatives is the alternative investment arm of J.P. Morgan Asset Management. The company has more than $120 billion in assets under management as of December 31, 2016 deployed across real estate, private equity and credit, infrastructure, transportation, liquid alternatives, and hedge funds. 

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