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Hudson Structured Capital Management Secures $719 Million for Shipping Fund V

Hudson Structured Capital Management Ltd. (HSCM), a prominent name in investment management focused on alternative assets, has officially closed its Hudson Northern Shipping Fund V LP (HSNF V) with noteworthy commitments totaling $719 million. This amount not only meets but surpasses the initial target of $700 million, marking a significant achievement for the firm.

Fund Overview

The primary objective of HSNF V is to direct investments towards senior loans and capital leases associated with vessels, enhancing its portfolio's strength in the maritime sector. This fund has attracted commitments from an array of investors, including both new and returning stakeholders, notably comprising public pension plans and insurance companies. Such a diversified investor base reflects the growing appetite for maritime investments, which are seen as integral to the global economy.

HSCM has structured a rated note feeder vehicle specifically designed for this fund. This innovative investment structure thrives on the issuance of notes, a majority of which have successfully earned an investment-grade rating from a respected independent third-party rating agency at the close of the fund. It’s important to note that while these ratings provide insight into potential performance, they are not guarantees of future outcomes.

Demand for Non-Bank Lending

In the current financial landscape, the demand for non-bank lending solutions continues to grow. According to Jason Braunstein, Co-Chief Investment Officer for HSCM, this final closing represents a key milestone for the company's Hudson Northern Shipping strategy. Braunstein articulated enthusiasm about the expanded investor base, stating, _“We are excited to have broadened our investor base to allow us to meet the needs of our customers.”_ This evolution not only highlights the successful marketing of the fund but also underscores the increasing acknowledgment of alternative financing options in the shipping industry.

Launch of the Rated Note Feeder Vehicle

Managing Partner Michael Millette expressed his satisfaction regarding the new rated note feeder vehicle which focuses on blue-water shipping investments. He highlighted that this vehicle further facilitates investor access to a sector that is often regarded as having a low correlation to traditional asset classes, providing a means to diversify investment portfolios effectively.

The capital structure for this vehicle was adeptly crafted with the assistance of Performance Trust Capital Partners LLC, which acted as a structuring advisor, while Haynes Boone provided counsel regarding the rated note feeder vehicle. Additionally, Seward & Kissel LLP served as fund counsel for HSNF V, reinforcing the robust advisory framework supporting this venture.

About Hudson Structured Capital Management

Founded with a vision to excel in alternative investments, Hudson Structured Capital Management Ltd. focuses on the Re/Insurance and Transportation sectors. The firm emphasizes disciplined underwriting and capital efficiency while exploring opportunities across a variety of transactions, including primary and secondary deals.

For additional insight into HSCM and its investments, visit their official website at www.hscm.com.

Conclusion

The closing of Hudson Northern Shipping Fund V LP is not just an achievement in terms of fundraising; it is indicative of the shifting trends in the investment landscape, where alternative assets are rapidly gaining traction among institutional investors. As the firm continues to leverage and expand its capabilities within the sectors it operates, stakeholders keenly anticipate the outcomes of these aggressive investment strategies.