KKR’s maiden maritime vehicle sets sail

The firm’s mid-market merchant banking JV, which is backed by CPPIB and Stone Point, helped to arrange some of the $580m in initial capital for the maritime financing vehicle.

KKR has established a specialist maritime financing unit which will provide asset-backed debt capital to the shipping and offshore oil field services industries. Maritime Finance will be led by Kristan Bodden and Gabriel Tolchinsky, both former partners at Africa-focused Helios Advisors.

The US-headquartered alternatives manager has provided almost half the $580 million of equity used to capitalise the new business unit, called Maritime Finance Company, according to a statement that suggested the firm could raise additional capital. Its contribution was made via its balance sheet as well as through KKR Financial Holdings and MerchCap Solutions (MCS), the firm’s recently-established mid-market merchant banking venture backed by partners CPPIB and Stone Point Capital.

The firm cited a report from AMA Capital Partners that suggested more than $220 billion of debt capital would be required by the maritime sector through the end of 2014. 

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