Private equity investment in the European ferry market

This paper provides an analysis of the increasingly prevalent involvement of private equity funds (PEFs) in the maritime sector, with a focus on the European ferry sector. The development and workings of PEFs are explained, including a review of the pros and cons of this type of investment model/funding vehicle. A series of case studies relating to the acquisition of individual ferry operators by PEFs are presented, in order to better understand the nature of these sorts of transactions. A comparative analysis of the circumstances of each case study is included, as well. Several characteristics of individual ferry operators that PEFs find attractive are as follows: existence of barriers to entry on ferry routes served; a long-established business track record; consistently stable cash flows; and large market shares. These characteristics are quite similar to other essential transport infrastructure investments, such as roads and railways. The author concludes that PEFs appear to find the ferry market a relatively safe and attractive investment opportunity. Thus, sellers of ferry services need to be conscious of the potential opportunities and disadvantages of PEF investment and ownership.

• Availability:
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• Corporate Authors:

  Edward Elgar Publishers

  William Pratt House, 9 Dewey Court
  Northampton, MA  United States  01060-3815
• Authors:
  • Baird, Alfred J
• Publication Date: 2011-4

Language

• English

Media Info

• Media Type: Print
• Features: Figures; References; Tables;
• Pagination: pp 283-304
• Monograph Title: International Handbook of Maritime Business

Subject/Index Terms

• TRT Terms: Case studies; Equity (Finance); Ferries; Investments; Market development; Market share; Private enterprise; Water transportation
• Uncontrolled Terms: Funds
• Geographic Terms: Europe
• Subject Areas: Economics; Finance; Freight Transportation; Marine Transportation; I10: Economics and Administration;

Filing Info

• Accession Number: 01354399
• Record Type: Publication
• ISBN: 9781847209337
• Files: TRIS
• Created Date: Oct 21 2011 7:37AM