FundRock, a unit of Apex Group, said on Tuesday that it will serve as in-house manager of the Premium Maritime Credit Fund, a new Luxembourg-based fund that first closed in January after raising 110 million dollars from European institutions and family offices.
The Premium Maritime Credit Fund is managed by NRP Maritime Asset Management (NRP MAM), a Norway-based investment manager with a track record managing investments in the maritime industry. The fund is is structured as a Reserved Alternative Investment Fund, or RAIF, in Luxembourg.
FundRock said it will support the fund as the Alternative Investment Fund Manager, or AIFM, acting as the fund’s de facto in-house manager on behalf of NRP MAM.
As a fund vehicle, RAIFs are becoming increasingly popular in Luxembourg because they are subject to a lighter supervisory regime. Only the fund’s management company, and not the fund itself, is subject to direct supervision by Luxembourg’s CSSF. Luxembourg was home to more than 1600 RAIF funds at the end of last year. (Click here to read an earlier story about RAIFs.)
Trusted external providers
”Managing an in-house AIFM now requires extensive allocation of time and resources for managers, who, as regulatory requirements evolve and rise, are increasingly turning to trusted external providers to achieve greater efficiency,” said Xavier Parain, Managing Director of FundRock.
NRP targets a next closing of the fund at a target of 200 million dollars by the end of 2022, the companies said in a press release. The fund will pursue building a portfolio of maritime loans with a strong focus on lending to European small to midsize shipping companies.
The fund is backed by investments from the European Investment Fund (part of the European Investment Bank), Oslo Pensjonsforsikring AS and funds managed on behalf of the Greater London Authority. Several Norwegian maritime and non-maritime family offices also have invested.
As a supporter of the fund, FundRock will also deliver foreign exchange services through EDB, a subsidiary of Apex Group. FundRock said it will cover key functions, including risk management, portfolio management, valuation, reporting and passporting.
Focus on core objectives
“With FundRock’s support we will be able to focus on our core objectives of continuing to raise capital from high quality institutional investors; delivering attractive risk adjusted returns; and embedding high ESG standards in all of our investments in the maritime debt markets,” said Nicolai Heidenreich, Managing Partner of NRP Maritime Asset Management.
Additional advisors include Allen Overy and Wikborg Rein for legal services, and NRP Project Finance AS and South 40 Capital for fundraising.
FundRock oversees more than 470 funds with a total of 134 billion euro in assets under management.