In August 2018, The Cynosure Group (“Cynosure”) closed on a minority investment into Anglo International Shipping (“Anglo”). Anglo is an UK-based owner and international operator of second-hand vessels focused on the dry bulk shipping market. Anglo was formed in 2017 in response to severe industry distress, attractive asset prices and scarcity of well capitalized dry bulk shipping companies. Anglo is led by CEO Steven Davies. Cynosure’s investment will allow the Company to increase its fleet size through additional ship acquisitions.
The Anglo investment allowed Cynosure to capitalize on an industry in its recovery phase. Given the industry stress experienced since the financial crisis, we believe vessels were acquired at an opportunistic point in the shipping lifecycle. The downturn in charter rates and ship values ended in 2016 and the sector has begun to show a recovery. Newbuild and second-hand ship prices have also begun to recover but are still well below long-term averages. Coming out of a period of distress, the industry has yet to develop a backlog of new ships to support current demand growth and scrapping. With limited new supply and growing demand, we anticipate a continued recovery in charter rates and shipping values to be positive for Anglo.
For additional information on Cynosure, or any of its investments, please contact David Hunter at 801-521-3100.
Note: Industry data sourced from Maxim Group Research (August 21, 2017) – A Rising Tide Lifts All Boats