Portfolio, Investment & Restructuring
Investment Committee Analysis for Vessel Acquisitions
Summary
An investment committee memo assembles transaction facts, investment thesis, financing structure and downside tests for a vessel acquisition.
Why this matters in ship finance
It disciplines decision-making where asset prices, charter markets and leverage create nonlinear downside exposure.
The concept
A robust memo separates observed market evidence, management forecasts, legal due diligence, lender terms and model assumptions; governance arrangements determine approval authority.
How it is used in practice
Present vessel particulars, valuation, employment, sources and uses, debt service, downside cases, exit assumptions and required approvals.
Practical issues
An investment-committee template is a governance tool, not an EU-prescribed form. Conflicts of interest and incomplete due diligence should be explicitly recorded.
How ShipFinance.ai uses this concept
Generate a case-specific memo with linked evidence and traceable scenario outputs.
Key takeaways
- Investment approval should be evidence driven.
- Downside debt capacity matters as much as projected return.
- Assumptions and approvals must be documented.