Northern Shipping closes third fund on $505m

The fund secured commitments from several US public pension funds.

Northern Shipping Funds has locked down $505 million for the final closing of its latest shipping investment vehicle, an effort that blew past the firm’s $400 million target, it said in a Tuesday statement.

The Stamford, Connecticut-based firm secured commitments from public and private pension funds, high-net-worth family offices and shipping executives. According to Private Debt Investor data, the fund will invest in subordinated and mezzanine debt in North America, Western Europe and the Asia-Pacific.

Among the other limited partners contributing to the fund are: the Teachers’ Retirement System of the State of Illinois ($75 million), the Oregon Public Employees’ Retirement System ($125 million), Oregon State Treasury ($125 million), the Arizona Public Safety Personnel Retirement System ($70 million) and the Missouri Department of Transportation and Highway Patrol Employees’ Retirement System ($15 million), PDI data showed.

“We believe that a favorable investment climate exists for our alternative credit strategy as the maritime sector continues to suffer from the retrenchment of traditional lending from European banks,” Northern Shipping Funds managing partner Sybren Hoekstra said in the statement. Hoekstra and fellow managing partner Sean Durkin will be leading the fund.

Northern Shipping Funds’ previous Fund II raised $205 million in 2013.

Eaton Partners and Manor Private Capital were placements agents for the fund.  Seward & Kissel served a legal counsel.