J.P. Morgan Asset Management has closed its second maritime fund at $480 million. The limited partners of Global Maritime Investment Fund II include pension plans, insurance companies, endowments and healthcare organizations. The pool will invest in vessels in distressed shipping sectors. So far, the fund has deployed $312 million of its capital via the acquisition of 14 assets.
NEW YORK, June 22, 2017 /PRNewswire/ — J.P. Morgan Asset Management today announced the closing of its Global Maritime Investment Fund II with $480 million in capital commitments from a broad range of international institutional investors, including pension plans, insurance companies, and endowment and health care entities.
The Fund, which surpassed its $400 million targeted capital raise, is one of the largest dedicated shipping funds. It seeks to invest, through a closed-end structure, in modern vessels operating in shipping sub-sectors that are experiencing substantial distress, with values trading near historical lows. The Fund has already invested $312 million or 65% of total capital through the acquisition of 14 assets.
One of J.P. Morgan Asset Management’s first 14 investments for the Fund. The firm has already invested 65% of the $480 million raised.
The distressed shipping opportunity is a small part of a broader transportation capital requirement, which has intensified following the departure of traditional funding sources such as banks. “With an estimated $4.5 trillion-plus in capital required to finance global transportation assets over the next 10 years, this is a large-scale and wide-ranging investment opportunity,” said Anton Pil, Managing Partner of J.P. Morgan Global Alternatives, “Institutional investors, seeking uncorrelated and high relative value returns, have discovered this growing, sustainable opportunity to own and lease tangible assets that form the foundation of our interdependent global economy.”
“In the shipping space, investors have the potential to capitalize on an historic opportunity to acquire quality assets at very favorable prices,” continued Andy Dacy, Head of Global Transportation, J.P. Morgan Global Alternatives. “Our established and dedicated transportation investment team with an extensive industry network has been able to acquire vessels at distressed purchase prices, achieving opportunistic-level returns.”
With $1.26 billion in institutional client capital dedicated to the transportation industry, J.P. Morgan Asset Management is a leader in this sector globally.
About J.P. Morgan Global Alternatives
J.P. Morgan Global Alternatives is the alternative investment arm of J.P. Morgan Asset Management. With more than $120 billion in assets under management and over 800 professionals (as of December 31, 2016), we offer strategies across the alternative investment spectrum including real estate, private equity and credit, infrastructure, transportation, liquid alternatives, and hedge funds. Operating from 23 offices throughout the Americas, Europe and Asia Pacific, our independent alternative investment engines combine specialist knowledge and singular focus with the global reach, vast resources and powerful infrastructure of J.P. Morgan to help meet each client’s specific objectives.
For more information: www.jpmorganassetmanagement.com.
About J.P. Morgan Asset Management
J.P. Morgan Asset Management, with assets under management of $1.5 trillion, is a global leader in investment management. J.P. Morgan Asset Management’s clients include institutions, retail investors and high net worth individuals in every major market throughout the world. J.P. Morgan Asset Management offers global investment management in equities, fixed income, real estate, hedge funds, private equity and liquidity. JPMorgan Chase & Co. (NYSE: JPM), the parent company of J.P. Morgan Asset Management, is a leading global asset management firm with assets of approximately $2.5 trillion and operations worldwide. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.
J.P. Morgan Asset Management is the brand for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide.