BEVERLY, Mass.--(BUSINESS WIRE)--Easterly Asset Management announced the formation of Maritime Logistics Equity Partners (MLEP), a new company formed to take advantage of the enormous opportunities in international shipping markets, including the chemical tanker shipping sector that is projected to be a $9.5 billion market by 2026.1
“There is a compelling opportunity to invest in pre-owned chemical tankers, given the limited supply and growing demand for the vessels, a low future orderbook for shipping construction and the expansion of chemical trade lanes,” said Darrell Crate, Managing Principal of Easterly Asset Management and MLEP’s Chief Executive Officer. “Like the oceans themselves, the opportunities are vast.”
In its first transaction, MLEP acquired two stainless steel chemical tankers, the Easterly Beech Galaxy and the Easterly Lime Galaxy, from CIDO Shipping.
“MLEP has recently acquired two additional vessels and is actively looking to acquire more stainless-steel tonnage of all sizes aged 10-15 years,” said Crate. MLEP intends to acquire more stainless steel vessels by the end of 2021. By acquiring previously owned tankers to meet increased demand, MLEP can provide investors with an attractive level of regular, growing income as well as capital returns. “Chemical tankers may not be glamorous, but they keep the global economy humming and investors happy with a steady stream of income,” added Crate.
“We are actively looking to acquire more stainless-steel tonnage of all sizes aged 10-15 years,” said Darrell Crate, Maritime Logistics Equity Partners’ CEO.
MLEP is responding to industry trends, including a decline in the building of chemical tankers intended for the transport of bulk liquids such as palm oil, feedstock and other commodities. Following a construction boom that peaked in 2008, shipbuilders are now focused on building other tanker types and sizes. With increasing chemical production, tight ship supply and a lack of liquidity in the capital markets for new tankers, there is growing demand for such vessels. MLEP is acquiring tankers built during the boom but with years of productive life remaining and putting them out for hire through WOMAR. “A tight shipping supply, combined with increased global chemical production, is a powerful tailwind for existing vessels,” added Crate.
MLEP will place all of its acquired vessel into WOMAR’s Tanker Pools. WOMAR Chief Executive Officer Hans Van der Zijde said, “We welcome the opportunity to work with MLEP and to build a long-lasting commercial asset management relationship. Since September 2019, we have been working closely with US private equity investors and feel WOMAR has a unique product offering for institutional investors becoming ship owners.”
About the Vessels Acquired
The Easterly Beech Galaxy was built in 2007 and has a gross tonnage of 11,623 and a summer deadweight of 19,998 tons. The Easterly Lime Galaxy was built in 2008 and has a gross tonnage of 11,623 and a summer deadweight of 19,992 tons.
About Darrell Crate
In addition to serving as CEO of MLEP, Crate founded private investment firm Easterly in 2009. He holds leadership positions in ventures including multi-affiliate manager Easterly Asset Management; Easterly Government Properties, (NYSE: DEA); Easterly Funds, a mutual fund platform; value manager Easterly Investment Partners; and Easterly EAB Risk Solutions, which provides defensive equity and derivatives strategies to help clients manage portfolio risk.
About Maritime Logistics Equity Partners
Maritime Logistics Equity Partners (MLEP) is a company formed to raise capital to take advantage of various opportunities in the international shipping markets. MLEP intends to acquire and operate previously owned chemical tankers. The Company’s objective is to provide investors with an attractive level of regular, growing income and capital returns by investing in previously owned chemical tankers. The company expects a robust chemical tanker market due to a historically low order book, a lack of liquidity in the capital markets for new tankers, expanding ton-mile demand for chemical tankers and additional cargo coming online in 2021 and beyond.
About Easterly Asset Management
Easterly Asset Management (Easterly) is a multi-affiliate platform of high-performing boutique investment managers, and is also the holding company for MLEP. Founded by industry veterans with more than 20 years’ experience, Easterly is committed to bringing investors innovative and novel strategies by partnering with quality managers who are craftsman in their respective asset classes and investment processes. We provide boutique firms a partnership that delivers a foundation to scale their business with best-in-class solutions in marketing, sales, technology, operations, human resources, and finance. We also offer affiliates, through our platform partnerships, the opportunity to access our retail & institutional distribution services. Additionally, we partner with outside firms on various private placements and fund offerings as well. For more information, please visit Easterly at https://easterlyam.com/.
WOMAR is an experienced tanker pool operator with industry scale to operate the acquired vessels. WOMAR is one of the largest independent pool operators in the chemical tanker space. It has five offices globally: Singapore; Rotterdam, Netherlands; Mumbai, India; Houston, Texas; and Stamford, Connecticut. WOMAR’s senior management has been with the company for over a decade and has deep industry experience. WOMAR deploys tonnage worldwide and leverages the synergies of global trade by being local in major areas of significance. For more information, please visit us at https://www.womarpools.com.
1 “Chemical Tanker Market Size In 2021: 2.0% CAGR with Top Countries Data, Research, High Demand, Share, Industry Analysis by Top Manufactures, Growth Insights and Forecasts to 2026,” by 360 Research Reports, August 10, 2021