Objective
Aims to offer investors high income and attractive risk-adjusted returns with equity-like upside with protection against inflation risk.
Why This Strategy?
Deep Expertise
Our MLEP investment partners are globally recognized leaders in the chemical tanker market.
Investor Access
MLEP provides investors a unique opportunity to invest in this difficult-to-access and opaque market.
Risk/Reward Profile
In a world where yields with a reasonable risk/reward profile are difficult to obtain, MLEP can offer a high level of income with downside risk protection1
Why Invest in Tankers?
- Maritime shipping is a $12T market that is the lifeblood of global trade, transporting 90% of products the world consumes. The many appealing aspects to investing in chemical tankers include:
- Diverse Cargos: Chemical tankers operate on specialized routes and carry a wide range of materials including organic (e.g., methanol), vegoils, inorganic and others (e.g., ethanol) as well as oil and gas
- Core Industry Ties: The chemical products transported by these tankers support core industries in our global economy including food production, automotive, semiconductors, pharmaceuticals and others
- Supply & Demand Imbalance: Chemical tanker demand is expected to grow in the coming years at an accelerated rate due to expanding chemical production, while vessel production has waned
- Forced Selling: Shipping companies are often forced to sell chemical tankers, with average lifespans of 20-30 years, when they are 10-15 years old, creating a deeply discounted buying opportunities
- High Operation Rates: Day rates for operating chemical tankers are at all time highs depending on a tanker’s Deadweight Tonnage (DWT), a measure of the vessel’s carrying capacity
1 Downside risk protection features are not a guarantee against losses.