14 January 2010 - Press Release
Nordcapital: defying the trend - over €200 million of equity placed in 2009
- Focus on specialist offshore ships and forest investments
- Liquidity-securing concepts for shipping funds successfully implemented
- Transport and energy will continue to be the subject of future investment
- Solar and other property funds under preparation
Hamburg, 14 January 2010. Nordcapital, the Hamburg-based issuing house for closed-end investment funds, raised €210 million over the past year, agio included, for its funds. Defying the general trend in the market, the creator of shipping funds achieved its highest amount of placements. In 2009 alone, investors put €116 million into specialist, offshore ships. Once the exceptional charge during 2008 for the container fleet is taken into account, this means that the sales performance of the previous year was matched.
"Last year, we decided to concentrate on a select number of core sectors, while also adopting a highly proactive and open approach to communicating with our sales partners and investors," says Rainer Seelheim, CEO of the Nordcapital group. The Hamburg-based issuing house is convinced that investment in assets in closed-end investment funds will pay off over the medium term, against a background of changed investor behaviour. "Closed-end funds are partner-based investments in assets within which the investors and initiators communicate with each other on an equal basis and, together, take decisions about the progress of the investment. Our new slogan, ‘Creating values together’, emphasises the uniqueness of this investment," explains Seelheim.
Securing liquidity over dividends
The collapse in world trade has affected everyone, and Nordcapital’s shipping funds are no exception. Given the difficult conditions in the global shipping market, at €44 million, the total amount of dividends paid for 2009 is as expected far below the level of the previous year, when they amounted to €191 million. For reasons of commercial prudence, many shipping funds are not paying out. As fund managers, this enables us to avoid liquidity bottlenecks on ships with low or overdue charter earnings, which could lead to additional input being required from investors.
For four of the shipping funds, the concepts proposed by the initiator last year to secure liquidity have been successfully implemented. The money was provided by both banks and investors. In their majority, investors accepted the concepts for five further shipping funds facing potential liquidity bottlenecks. The capital is currently paid in full. Similar concepts are being prepared for other shipping funds. Investors who contribute to securing the further operation of their ship by putting in additional funds are receiving an attractive interest rate on their investment. "This is an important incentive for us. In most cases, a distress sale of a ship at the prices currently available in the marketplace is the worst conceivable solution for all those involved," explains Seelheim – a fact also recognised by investors, who provided approximately €11 million of new equity during 2009.
Outlook
Transport and energy will continue to be subjects that have a future. After all, securing the supply of energy worldwide ranks as one of the major challenges of our age. In addition to investing in the oil industry – by way of offshore and energy supply funds – Nordcapital is strengthening its commitment to renewable energy. Beyond its existing forest fund, the initiator is planning shortly to bring its first solar fund to market. With its multi-crystalline solar cells, Solarpark, located in Germany, started contributing to the grid in 2009. Following the successful placing of the most recent fund, Niederlande 10, further select real estate investments for 2010 are currently in the planning phase.