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viewpoints
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Is private equity the future of green shipping?

In recent years, the shift from traditional bank financing to private equity investment in shipping has been evident to any market participant. 

The cost of turning shipping greener is likely to be significant, and owners will be looking to new investors willing to invest in new technologies and provide more capital than might otherwise be needed to continue business as usual. 

While many private equity players looked to shipping as a medium term investment, the increased pressure for shipowners to modernise their fleets and pursue environmentally friendly policies could be a factor in these alternative investors staying around for longer than expected. 

Traditional financing may be becoming scarcer, but Mr Jadick believes decarbonisation plays directly into the basis of environmental, social and governance investment. It could be a game changer in terms of future returns and sustainability.

Tags

transportation, asset finance, finance