JP Morgan Asset Management has raised US$480 million to invest in modern shipping industry vessels.
The fund aims to invest in vessels operating in shipping sub-sectors that are experiencing substantial distress. It has already invested $312 million - 65 per cent of total capital - through the acquisition of 14 assets, according to JP Morgan.
Managing partner at JP Morgan Global Alternatives, Anton Pil, said investors were interested in the new fund because shipping is among the few struggling sectors with cheap assets, reported American Shipper.
"With an estimated $4.5 trillion-plus in capital required to finance global transportation assets over the next 10 years, this is a large-scale and wide-ranging investment opportunity," Mr Pil explained in a statement.
"Institutional investors, seeking uncorrelated and high relative value returns, have discovered this growing, sustainable opportunity to own and lease tangible assets that form the foundation of our interdependent global economy."
The latest capital commitments were raised through a JP Morgan Asset Management global maritime investment fund from a broad range of international institutional investors including, pension plans, insurance companies, and endowment and health care entities, the company said.
The distressed shipping investment is part of a broader transportation capital obligation, which JP Morgan says has intensified following the departure of traditional funding sources like banks from the sector.