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AIF Fund

Interorient Shipping Fund, established in 2020, unlocks the potential of shipping investments and offers its investors attractive opportunities and returns.

Why invest in shipping

  • A global industry, which is known for capital gains due to the cyclical nature of its market.

  • A liquid market with more than 95,000 vessels trading worldwide, average annual sales of around 2,350 vessels. In 2022 the value of the sale & purchase market and newbuilding contracts were about $57 billion and $124 billion respectively.

  • Wide range of investment opportunities in various segments, with no or negative correlation to the equity markets and real estate investments

A unique opportunity  to benefit from shipping investments due to:


  • Improving supply-demand fundamentals.
  • Slowing fleet size growth (supply side) with order book in some segments at a historic low level and return to trade growth as the effects of the recent health crisis continue (demand side) are expected to drive earnings and asset prices upwards.
  • Geopolitical challenges and regulatory implementations creating opportunities.

FUND STRUCTURE

The Fund is an open-ended umbrella investment company, authorized and regulated by the Cyprus Securities and Exchange Commission to operate as an Alternative Investment Fund (“AIF”)

The Fund creates multiple investment compartments with segregated assets and liabilities under its umbrella, diversifying its investments in various shipping segments, and holds/ acquires vessels through Special Purpose Vehicles (“SPVs”)

The SPVs enter into ship management agreements with Interorient Shipmanagement for the provision of crewing, technical and commercial management services

Interorient Shipping Fund unlocks the potential of shipping investments and offers its investors attractive opportunities and returns

  • Its purpose is to offer investors attractive annual dividend yield and capital gains from asset value appreciation, through transactions that are typically only available to big investment firms.
  • The Fund gives access and opportunities to smaller investors to participate in transactions that are normally available to larger institutional investors.
  • Tax exemption of all profits and dividends as the Fund is engaged in qualifying ship owning activities and taxed under the Cyprus Tonnage Tax System

Following our team’s long and proven experience in the industry, we base our investment strategy on:

  • Identifying and acquiring undervalued second-hand commercial vessels swiftly, utilising our in-house expertise in shipping markets and engaging our trustworthy external network of important industry players
  • Maximising annual yield and value to investors by carefully managing the trading of the vessels; Taking advantage of Interorient’s high-quality services in technical and commercial management and its network of brokers and first-class commercial counterparts for a highly profitable employment of the vessels
  • Leveraging transactions appropriately to increase returns, while controlling risk, through our strong relationships with reputable local and international financiers
  • Executing bareboat deals that provide fixed return through secured income stream and downside protection through a put option at the end of the period
  • Exiting investments timely, achieving maximum returns

Our team’s strong investment track record includes investments in various shipping segments with attractive returns for the investors

We are in the process of identifying suitable vessels which offer an attractive investment opportunity given the favorable demand and supply fundamentals in the medium to long term.

In order to ensure a stable cashflow and reduce volatility risk, the intention to employ the vessels on period charter with first-class charterers either based on a fixed time charter rate or on index-linked rate with a convertibility to lock the rate based on the forward rates at the time.

Investors are invited to express their interest (soft commitment) to participate in a new compartment which is expected to invest in bulk carriers within the next 12 months.