KKR announces formation of specialty finance company Maritime Finance

By Tali David

Minneapolis, Aug. 20 - Kohlberg Kravis Roberts & Co. LP announced the formation of Maritime Finance Co., a new specialty finance company created to lend to the maritime industry.

Led by former Helios Advisors partners Kristan Bodden and Gabriel Tolchinsky, Maritime Finance is an asset-based lender focused on maritime assets in the offshore oil field services and traditional shipping sectors, according to a KKR news release.

The company will originate, structure, underwrite, invest in and distribute debt financings secured by maritime assets, including drilling rigs, development and production assets, subsea construction vessels and other traditional shipping assets.

According to the release, Maritime Finance will initially be capitalized with $580 million of equity, over 45% of which has been provided by KKR, including through its balance sheet, KKR Financial Holdings LLC and MerchCap Solutions, KKR's recently established mid-market focused merchant banking venture with Cppib and Stone Point Capital.

The balance of the capital was arranged by MerchCap Solutions and included participation from various family offices, mutual funds, hedge funds and specialist financial services investors.

The company will use the proceeds to fund its establishment and operation, provide capital for newly originated maritime financings and potentially acquire a seed portfolio of outstanding loans.

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