A private equity powerhouse has once again occupied the shipping headline since the takeover of Cido Shipping’s 30 mega fleet by Wilbur Rossbacked Diamond S Shipping. The world’s largest and most reputable PE firm Blackstone last month confirmed an en bloc purchase of majority stakes of Germany owner Hartmann Reederei’s 9 Handy to Medium Range product tankers. As published by Tanker Operator the vessels involved were reported as two LR1s managed by Donnelly and seven MRs managed by Intership. And according to an anonymous source, Blackstone in partnership with Tufton Oceanic, a shipping fund management company, will access 85% of the stakes while the Hartmann Group retains the rest 15% and continue to provide technical management and operation charting service to these vessels. Hartmann’s website shows after the divestment of the nine ships, the group on its part still controls three similar ethylene tankers.

The total amount for the assets acquired still remains undisclosed, but the move has certainly brought favorable news to the tanker market. Within this year alone, many prominent financial elites have put their eyes on the tanker section. They are unanimously expecting long as the demand of energy will rise notably with the pace of recovery from crisis. And the recent encouraging US LNG export policy is also a major factor. King of Capital seldom makes mistake. Besides Stephen Schwarzman and Wilbur Ross, the Richard Crombie leads J.P. Morgan Global Maritime Investment Fund earlier this May teamed up with Ceres Shipping and jumped into the tanker pool by ordering 4+4 Medium Range tankers in South Korea’s SPP shipyard.

The Germany shipping company officially denied the deal as a distress sale to pay back its creditors. They said the buyer showed “realistic” return expectations quoted by Fairplay. But so far as I know, the sale with its price in speculation is more likely a distress sale to allow Hartmann diversifying its funding source and keep the company afloat. Back in June, at the Pierre Hotel New York, during 25th Anniversary Marine Money Week, Hartmann’s newly appointed managing directorJan-Lars Kruse who is responsible for the financial part had meet with Blackstone’s Senior Managing Director Flip Huffard who is specializing in acquiring distress assets. So the clue is obvious but the conclusion is yours.

Blackstone is also active in the LNG market by investing 2 billion US dollars into NYSE listed Cheniere’s Louisiana LNG export facility, which was recently approved by US regulators.