Equity Capital Market in Shipping

Abstract

In general, the placement of new equity in shipping falls under the scope of the Alternative Investment Fund Managers Directive (“AIFMD”). The article describes the essentials of the AIFMD, its purpose and scope, the regulatory requirements it contains and, in particular, its provisions regarding the valuation of funds and the appointment of a depositary to ensure the proper monitoring of cash flows. In Germany, the AIFMD has been implemented through the enactment of the Investment Code (“Kapitalanlagegesetzbuch”—hereinafter “Code”). The article describes the purpose and the scope of the Code in relation to shipping funds structured as limited partnerships. The different types of AIFs and their requirements as stipulated in the Code are explained. Institutional investors and their needs are classified with reference to the AIFMD and the Code. The article concludes by considering those structures where institutional investors prefer to invest their equity with a focus on private equity investments.