Portfolio, Investment & Restructuring
Exit Strategies for Maritime Investors
Summary
An exit strategy defines how capital is realised through vessel sale, equity disposal, refinancing, fund distribution or public offering.
Why this matters in ship finance
Exit timing and market depth can determine realised returns more strongly than interim operating results.
The concept
Different exits transfer different legal claims and costs: sale of a ship, sale of vessel-owning shares and listed equity placement are not interchangeable.
How it is used in practice
Set target return thresholds, refinancing constraints, closing costs, tax assumptions and contingency holding periods under weak sale markets.
Practical issues
An estimated net asset value is not necessarily executable exit proceeds; securities-law duties may apply to listed-company transactions.
How ShipFinance.ai uses this concept
Compare sale, refinancing and equity-exit waterfalls and their sensitivity to timing and liquidity.
Key takeaways
- Exit proceeds must be net of debt and transaction costs.
- Asset and equity exits have distinct risks.
- Liquidity under downside scenarios should be explicit.