The Fund has currently four active compartments with total current AUM of around $100 mil.
The investments in the product tankers (Interorient Fund II and Interorient MR Tanker Fund) were timely as tanker freight rates reached record levels during 2022 and first half 2023. The outlook of this segment remains very positive with rising oil demand, low stocks requiring more cargo in the water, increased tonne-mile demand due to shifts in the trade patterns, new refineries in the Middle East, and a historically low orderbook at just 5% of fleet capacity. The surplus cash from chartering the vessels was used for paying dividends (excess of 20% p.a.) and to repay loans.
The investment in the bulk carrier (Interorient Handymax Bulker Fund) has different risk-return characteristics from the product tanker investments. The vessel is employed on a long-term charter to a strong counterparty. The charter contract is structured with a floor rate and profit sharing above a ceiling, which provides both downside protection to the investment as well as upside potential.
Tanker
Interorient Fund II closed its first transactions in October 2021 by acquiring the product tanker, M/T Star Osprey.
Tanker
Interorient MR Tanker Fund closed its first two transactions in May and August 2022 by acquiring the product tankers, M/T Star Merlin and M/T Star Eagle.
Bulk Carrier
Interorient Handymax Bulker Fund closed a transaction in June 2023 acquiring the Supramax bulker M/V Orient Focus.
Bulk Carrier
Interorient Handy bulker Fund closed a transaction in March 2024 acquiring the Handysize bulker M/V Orient Tide.
