22.03.2007
DVB Investment Management again posts excellent results
DVB Bank, the Frankfurt-based specialist in transport finance, today announces that the DVB Investment Management activities have once again outperformed in the twelve months ending December 2006, and have contributed approximately 25 % of the Bank’s result from operating activities. High levels of activity in the aviation and shipping fund management activities have collectively generated substantial deal flow and above benchmark returns.
DVB Investment Management is a core business unit of DVB, which was established at the beginning of 2002. DVB Investment Management arranges equity for transport clients and provides fund management services to investors in the transport sector, operating close to the customer with dedicated teams from offices in New York, Oslo, London, Singapore and Curacao. DVB Investment Management acts as the fund manager for the Deucalion Aviation Funds, and together with its joint venture partner Northern Navigation Group, based in Greenwich CT, USA and Oslo, Norway as the fund manager of the NFC Shipping Funds. Very recently, DVB Investment Management has also set up its first Intermodal Unit Fund.
Mr. Wolfgang Driese, CEO and Chairman of the Board of Managing Directors, said: "Having been successful from the very start, our funds currently manage total assets of USD 2.4 billion. In 2006 asset purchases for the funds had a combined market value of USD 1.5 billion. Building on this strong performance, we want to further expand our investment management business – not least thanks to continued high investor demand for transport projects. DVB is the ideal partner for discerning investors looking for extensive expertise and experience on a global scale, and has a proven track record. This is particularly important given the cyclical nature of the transport market. Selecting the right assets for investment requires extensive market knowledge, and DVB´s core expertise in the global Transport Finance business gives it a unique perspective and competitive advantage. Likewise, as an integral element of DVB’s business model, the investment management franchise allows the Bank to offer its clients an equity finance alternative for their investment projects, perfectly complementing DVB’s service offer comprising lending, arranging of complex financing solutions and financial advisory services."
The Deucalion Funds invest equity in aircraft assets, airlines and aviation related interests. The Deucalion Funds consist of nine, predominantly Cayman Islands-based funds which act as the investment vehicles through which DVB and a group of investors together invest in aviation equity investments. The funds play an important role in supporting DVB´s airline clients through the provision of equity solutions in their aircraft acquisition and divestment strategies. The total capital committed to the Deucalion funds by DVB and third party investors at year end 2006 exceeded USD 330 million. During 2006, the Deucalion Funds acquired a total of 11 aircraft with a combined market value of USD 590 million and sold 3 aircraft.
The NFC Shipping Funds (NFC) provide equity, preferred equity and mezzanine loans to the shipping industry. The amount of equity raised in the eight NFC funds is close to USD 500 million. In 2006, NFC concluded 32 transactions of which 10 were exits and 22 were new investments. The exits involved 16 vessels with a combined value close to USD 300 million. The realized returns are well above the 15% ROE benchmark of NFC. The new investments involved over 60 vessels with a combined value of USD 900 million. In 2006 a new shipping fund was established (NFC VI) with an available equity of USD 150 million enabling it to buy assets up to USD 600 million. The 5 investors in NFC VI are based in USA, Japan, Hong Kong and Germany.
The Intermodal Unit Funds will provide equity, preferred equity and mezzanine loans to the intermodal clients. The first fund with an available equity of USD 36 million has been set up in the last quarter of 2006 enabling this fund to buy assets up to USD 180 million. This fund will concentrate on investments in intermodal assets (containers, chassis and trailers). Next year a fund will be setup that will concentrate on investments in freight locomotives and railcars. Two investments have already been made and a number of further investments are in the pipeline.
Note to Editors:
DVB Bank AG, based in Frankfurt/Main, is an international advisory bank and finance house that specialises in the global transport market. DVB offers integrated financing solutions and advisory services in respect of Shipping, Aviation, and Land Transport. The Bank operates out of offices in Frankfurt/Main, Hamburg, London, New York, Rotterdam, Hong Kong, Singapore, Tokyo, Bergen/Oslo, Piraeus, and Curaçao. DVB Bank AG is listed on the Frankfurt Stock Exchange (ISIN: DE0008045501).
Contact:
Prof. Dr. Borislav Bjelicic, Phone +49 69 9750-4390, Fax +49 69 9750-4333, DVB Bank Aktiengesellschaft, Corporate Communications, Friedrich-Ebert-Anlage 2-14, 60325 Frankfurt/Main, Germany, borislav.bjelicic@dvbbank.com, www.dvbbank.com
DVB Investment Management is a core business unit of DVB, which was established at the beginning of 2002. DVB Investment Management arranges equity for transport clients and provides fund management services to investors in the transport sector, operating close to the customer with dedicated teams from offices in New York, Oslo, London, Singapore and Curacao. DVB Investment Management acts as the fund manager for the Deucalion Aviation Funds, and together with its joint venture partner Northern Navigation Group, based in Greenwich CT, USA and Oslo, Norway as the fund manager of the NFC Shipping Funds. Very recently, DVB Investment Management has also set up its first Intermodal Unit Fund.
Mr. Wolfgang Driese, CEO and Chairman of the Board of Managing Directors, said: "Having been successful from the very start, our funds currently manage total assets of USD 2.4 billion. In 2006 asset purchases for the funds had a combined market value of USD 1.5 billion. Building on this strong performance, we want to further expand our investment management business – not least thanks to continued high investor demand for transport projects. DVB is the ideal partner for discerning investors looking for extensive expertise and experience on a global scale, and has a proven track record. This is particularly important given the cyclical nature of the transport market. Selecting the right assets for investment requires extensive market knowledge, and DVB´s core expertise in the global Transport Finance business gives it a unique perspective and competitive advantage. Likewise, as an integral element of DVB’s business model, the investment management franchise allows the Bank to offer its clients an equity finance alternative for their investment projects, perfectly complementing DVB’s service offer comprising lending, arranging of complex financing solutions and financial advisory services."
The Deucalion Funds invest equity in aircraft assets, airlines and aviation related interests. The Deucalion Funds consist of nine, predominantly Cayman Islands-based funds which act as the investment vehicles through which DVB and a group of investors together invest in aviation equity investments. The funds play an important role in supporting DVB´s airline clients through the provision of equity solutions in their aircraft acquisition and divestment strategies. The total capital committed to the Deucalion funds by DVB and third party investors at year end 2006 exceeded USD 330 million. During 2006, the Deucalion Funds acquired a total of 11 aircraft with a combined market value of USD 590 million and sold 3 aircraft.
The NFC Shipping Funds (NFC) provide equity, preferred equity and mezzanine loans to the shipping industry. The amount of equity raised in the eight NFC funds is close to USD 500 million. In 2006, NFC concluded 32 transactions of which 10 were exits and 22 were new investments. The exits involved 16 vessels with a combined value close to USD 300 million. The realized returns are well above the 15% ROE benchmark of NFC. The new investments involved over 60 vessels with a combined value of USD 900 million. In 2006 a new shipping fund was established (NFC VI) with an available equity of USD 150 million enabling it to buy assets up to USD 600 million. The 5 investors in NFC VI are based in USA, Japan, Hong Kong and Germany.
The Intermodal Unit Funds will provide equity, preferred equity and mezzanine loans to the intermodal clients. The first fund with an available equity of USD 36 million has been set up in the last quarter of 2006 enabling this fund to buy assets up to USD 180 million. This fund will concentrate on investments in intermodal assets (containers, chassis and trailers). Next year a fund will be setup that will concentrate on investments in freight locomotives and railcars. Two investments have already been made and a number of further investments are in the pipeline.
Note to Editors:
DVB Bank AG, based in Frankfurt/Main, is an international advisory bank and finance house that specialises in the global transport market. DVB offers integrated financing solutions and advisory services in respect of Shipping, Aviation, and Land Transport. The Bank operates out of offices in Frankfurt/Main, Hamburg, London, New York, Rotterdam, Hong Kong, Singapore, Tokyo, Bergen/Oslo, Piraeus, and Curaçao. DVB Bank AG is listed on the Frankfurt Stock Exchange (ISIN: DE0008045501).
Contact:
Prof. Dr. Borislav Bjelicic, Phone +49 69 9750-4390, Fax +49 69 9750-4333, DVB Bank Aktiengesellschaft, Corporate Communications, Friedrich-Ebert-Anlage 2-14, 60325 Frankfurt/Main, Germany, borislav.bjelicic@dvbbank.com, www.dvbbank.com