First Triton Shipping Fund AIFLNP V.C.I.C. Limited (the ‘Fund’) is an Alternative Investment Fund, incorporated under the Cyprus Companies Law, with Registration Number HE 375360, and authorised by the Cyprus Securities and Exchange Commission to operate as an Alternative Investment Fund With Limited Number of Persons (‘AIFLNP’), with License Number LPAIF91/2014. The Fund is a limited liability company by shares and an open-ended investment company of variable capital. The Fund is authorised to operate as an Umbrella Fund, with various investment compartments (‘Compartments’ or ‘Sub-Funds’).
The objective of the Fund is to provide investors with an opportunity to earn an attractive return (both income and capital gains generated) through investment in a professionally managed Shipping Fund. The Fund offers the option of selecting different Sub-Funds and investment strategies based on the required return and risk profile in order to achieve an optimum return from the capital invested.
The philosophy of the Fund is to invest in specific projects generating cash from the beginning, thus decreasing the risk for investors. Each project is selected based on a full business plan as well as detailed feasibility study and deal structure including, its target return and duration.
The Fund’s investment strategy is to take advantage of the current market conditions and opportunistically acquire, charter and sell vessels. The Fund targets investment opportunities in all main sectors of shipping (Dry, Wet and Containers) mainly in second-hand vessels that can be acquired at attractive prices.
Income is generated through a combination of spot and time charters for a balanced commercial approach. Each project has a target duration of five years including disposal though earlier sales are possible on an opportunistic basis maximizing returns for investors.
The target leverage per ship is 60% maintaining the risk of each project at low levels. The Fund’s strategy is to maintain relatively high levels of liquidity to be able to sustain market troughs.
Commercial and technical management is outsourced subject to specific criteria ensuring maximum efficiency for each project.
| Fund Name | First Triton Shipping Fund AIFLNP V.C.I.C. Limited |
| Lock up period | 5 years |
| Target Capital | €100m |
| Min Investment | €250k |
| Target Return | >10% IRR |
| Hurdle Rate | 6% |
| Management Fee | 1.25% |
| Performance Fee | 20% above 6% |
| Anchor Investment | 10% of total equity |
| Administrator | PWC Fund Services |
| Internal Audit | PWC Cyprus |
| Depositary | Eurobank Cyprus |
| Auditor | Moore Stephens Limassol |
| Compliance | K.Treppides & Co |
| Risk Management | K.Treppides & Co |
The Fund currently operates two different investment compartments and aims to create further investment compartment as investment opportunities are identified (subject to the approval of the CySEC). The two investment compartments are:
1. Compartment 1 (First Triton Sub-Fund I): The first compartment of the Fund
(First Triton Sub-Fund I) has been activated in January 2018 and is already invested in a project that involves the acquisition and charter of bunkering vessels.
2. Compartment 2 (First Triton Sub-Fund II): The second compartment of the Fund (First Triton Sub-Fund I) has a more opportunistic investment strategy capitalising on market opportunities across various types of sea-going vessels.
It is expected that additional investment compartments with alternative shipping investment strategies will be set-up in due course as investment opportunities are identified. A dedicated Sub-Fund can be set up for an investor or a group of investors wishing to own and control their own fleet.