London-based ship financing specialist Tufton Oceanic has announced a restructuring and split of the company into two businesses.
Tufton Oceanic said the reorganisation is designed to reflect the evolution of its businesses and to realign its structure, ownership and management to provide the appropriate incentives for its continued success.
In pursuit of these objectives, the business is to be split into Tufton Investment Management (Tufton) which will be led by Andrew Hampson as CEO and Paulo Almeida as CIO and encompass the existing asset backed investment business, and Oceanic Investment Management (“OIM”) which will be led by Cato Brahde and Jonas Andreasson and will encompass the existing public markets investment activities and TRACS real time shipping tracking platform. Each business will have separate ownership, independent Boards, management and staff.
As part of the structural change and the carefully planned development of leadership strategy, Tufton has also concluded a reorganisation of its ownership, with a new financial partner acquiring the shares of a number of Tufton’s long standing financial shareholders. The transaction has enabled the Tufton management team to acquire a substantially increased stake in the business. In addition, the new financial partner plans to support the growth prospects of the business by investing in future funds and investments managed or arranged by Tufton, including future capital raises by Tufton Oceanic Assets Ltd (SHIP.L) which as of 30 September 2020 has an NAV of $243m. Tufton manages $1.1bn in shipping assets across a number of funds.
Subject to the required regulatory approvals, OIM will be acquired by its management team and will continue to manage Oceanic Hedge Fund, together with its systematic trading platform and equity accounts. The investments encompass listed securities and FFA’s in the shipping, new energy and oil and gas space. OIM will also continue to commercialise its pioneering TRACS system that has provided live coverage of shipping and cargo movements across the industry for the past 10 years. TRACS gives valuable real time insights into the shipping markets and more generally world trade.
Cato Brahde, CIO of OIM, said, “The shipping sector has been challenged since the financial crisis due to a significant oversupply of tonnage. The current recovery in the sector – together with the coming energy transition – provide very exciting investment opportunities where we believe our long experience in the shipping, new energy and oil and gas industries will be invaluable”.
Erik A Lind, CEO of Tufton Oceanic Finance Group Limited (now renamed Oceanic Finance Group Limited), said that the new structure and sponsors of the two business platforms would serve them both very well in their quest to continue their respective development and expansion.
Andrew Hampson and Paulo Almeida said, “We are very pleased with the outcome of the shareholding reorganisation and having our new backer. This is the result of a carefully planned process that leaves the existing business in its current, healthy form yet improves alignment with our investor base and provides growth opportunities. We also thank the exiting shareholders for their dedication to Tufton over the years and for their support in completing this transaction.”
Tufton founder Ted Kalborg said, “Tufton is in excellent hands and with its reorganised shareholding structure is ready to take advantage of the many new growth opportunities we see in the global shipping industry. I am also very pleased that the firm’s new shareholder has requested I remain involved in the business for at least the next few years.”