HITECVISION COMMITS USD 206 MILLION TO OFFSHORE MERCHANT PARTNERS
HitecVision is pleased to announce Offshore Merchant Partners’ market entry and inaugurate investment. In its first transaction, Offshore Merchant Partners has acquired a portfolio of offshore projects and 49% of Scantank AS from Eivind Astrup’s Bjørgvin AS
The transaction with Bjørgvin represents Offshore Merchant Partners’ first investment and entry to the offshore asset market. Scantank AS is a reputed commercial manager for offshore and shipping projects,with management agreements for 12 offshore and shipping projects owning a total fleet of 26 offshore support, bulk and chemical vessels. Furthermore, Offshore Merchant Partners has purchased Bjørgvin AS’equity stake in four offshore asset projects comprising 12 modern Anchor Handling Tug and Anchor Handling Tug Supply vessels on long term bareboat charters to solid counterparties. The transaction also includes transfer of experienced personnel from Bjørgvin to Offshore Merchant Partners. The acquisition is subject to customary closing requirements.
Offshore Merchant Partners was established at the end of 2013 by HitecVision as an investment in Fund VI with a total committed equity capital of USD 206 million. The Company’s vision is to become the preferred investor, commercial- and alternative asset manager in the intersection between the offshore oil and gas industry and financial markets.By virtue of being asector specialist with a balance sheet, Offshore Merchant Partners complements existing service providers, primarily specialized investment entities, brokerage and advisory firms. The Company has an ambition to grow considerably in scale over the coming years, targeting equity and debt investments in multiple types of offshore asset projects. Capital will be originated from both equity and credit oriented investors. Offshore Merchant Partners will also provide adjacent services to offshore asset projects, such as commercial managementand advisory services.
Offshore Merchant Partners is based in Oslo and primarily targets oil & gas related offshore asset markets on a global basis. Norway is a major hub for industrial investments in the oil and gas sector, and the Company will benefit from the strong industrial and financial cluster located in Oslo. The Company is led by CEO Bengt Neteland. Prior to joining Offshore Merchant Partners, Mr. Neteland was member of Aker ASA's investment team following up the company’s investments in the oil and gas sector. In addition, Mr. Neteland has extensive transactional and maritime experience from his career in the John Fredriksen sphere where he was involved in financing, M&A and spin-offs of major oil & gas service companies, including Seadrill Limited.
HitecVision will be an active majority owner of Offshore Merchant Partners and nominate key employees to the Company’s Board of Directors and Investment Committee. The HitecVision team dedicated to Offshore Merchant Partners consistsof Ole Ertvaag (Founding Partner and CEO),Pål M. Reed (Senior Partner and Deputy CEO)and Alf C. Thorkildsen (Senior Partner).
Commenting on the launch of Offshore Merchant Partners and the Bjørgvin transaction, Chairman of Offshore Merchant Partners, Alf C. Thorkildsen said “We decided to enter into this market to capitalize on HitecVision’s unique offshore sector experience, direct access to equity and debt capital and network in the industry in order to take advantage of the market opportunity. Offshore Merchant Partners is in a unique position to benefit from HitecVision’s LP investor base and initiate cooperation with leading Norwegian and international financial institutions, pension funds, fund-of-funds, endowments and family offices.”
Adding to Mr. Thorkildsen, CEO Bengt Neteland said “This transaction induces Offshore Merchant Partners’ operations by adding a portfolio of attractive asset projects, a significant stake in a reputed commercial manager and transfer of experienced human resources. We see a number of opportunities in this space, and will proactively review the market in search for business opportunities. We are thrilled by the attractive growth prospects for Offshore Merchant Partners.”
About Offshore Merchant Partners
Offshore Merchant Partners is an investor,commercial manager and alternative asset manager headquartered in Oslo which primarily targets global oil & gas related offshore asset markets. By virtue of being a sector specialist with a balance sheet, Offshore Merchant Partners complements the existing service providers, primarily specialized investment entities, brokerage and advisory boutiques. The Company is structured as a portfolio company of HitecVision L.P. VI, established at the end of 2013 with an equity commitment of USD 206 million from the Fund.
HitecVision is a leading investor in the international oil and gas industry with offices in Stavanger, Oslo and Houston. The investment focus is on middle market investments in oilfield services and technology companies, and exploration and production (“E&P”) companies across the oil and gas value chain. HitecVision manages four funds with more than $ 3 billion in assets under management.
Alf C. Thorkildsen – Senior Partner in HitecVision and Chairman of Offshore Merchant Partners
Tlf: +47 977 50833
Bengt Neteland – CEO of Offshore Merchant Partners
Tlf: +47924 99386