JPMorgan Asset Management plans to raise between $500 million and $700 million for a private equity fund, which will invest in distressed shippers and debt-ridden fleet operators.
A bank spokeswoman confirmed the plans, but declined to give more details.
The fund will primarily invest in three types of vessels: dry bulk carriers, oil tankers and offshore vessels and will also support the expansion of shipping companies, according Indian daily newspaper The Economic Times.
The capital will be raised mainly from institutional investors in India and other Asian countries, the newspaper said.
This month, Kuwait Finance House (Malaysia) formed a joint venture with Cyprus’ SGS Group to launch a $150 million sharia-compliant private equity fund focused on shipping. It will make investments in shipping assets and primarily in vessels to be chartered on a long-term basis.
In February, JPMorgan Asset Management’s Asian Infrastructure and Related Resources Opportunity Fund, had raised $600 million on its way to a $1.5 billion final close.